Reforming paternity leave could benefit UK by £13bn a year

The introduction of six weeks’ well-paid leave for fathers in their baby’s first year would boost economic growth and better support working families, a new report has recommended.

According to a new report from the Institute for Policy Research at the University of Bath, extending the paternity leave earmarked for fathers to six weeks – paid at 90% of average earnings and available from day one of employment – could deliver net social benefits of up to £12.8 billion annually..

Currently, fathers in the UK are entitled to just two weeks of leave, often poorly paid, said the Institute. As a result, women continued to shoulder most of the care burden after childbirth.

Dr Joanna Clifton-Sprigg from the university’s Department of Economics said: “This is a win for families, businesses and the economy. Fathers want to be more involved, and mothers want to stay connected to work. The current system lets everyone down. We’re calling for a policy that matches what modern parents want. Six weeks of well-paid leave is a simple and cost-effective place to start.”

The report found that in the UK, women’s employment drops by 15 percentage points around childbirth. Men’s work patterns remain unchanged.

International evidence from Quebec, Sweden and Iceland shows that dedicated, well-paid leave for fathers led to greater sharing of care, earlier returns to work by mothers, and long-term equality gains.

Businesses would benefit in terms of improved staff retention, employee wellbeing and productivity.

The report argued that the UK’s shared parental leave (SPL) system had failed. Take-up remains low, due to poor pay, complexity and rigid eligibility rules.

The Institute’s authors’ principal recommendation is for the introduction of six weeks’ flexible leave for fathers, paid at 90% of average earnings (capped at £1,200 per week), available from day one of employment, and taken within the baby’s first year.

Other recommendations include aligning paternity and SPL policies and exploring how solo leave for fathers can shift workplace and household norms.

Dr Jeremy Davies, deputy CEO at the Fatherhood Institute and head of its “6 weeks for dads” campaign, said: “The UK’s statutory paternity offer has been at the bottom of the international league table for far too long. This important new research confirms that the benefits of a better-designed system could be huge. We call on the government to give this the attention it deserves, in its forthcoming review of the parental leave system.”

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