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MPs have called on Rachel Reeves to extend statutory UK paternity leave, arguing that enhancing the offering for new fathers would increase female participation in the workforce and boost the economy.
Ministers have pledged to review parental leave, under which new fathers are entitled to two weeks off of work after the birth of a child at £187.18 a week or 90 per cent of average weekly earnings, whichever is less.
Britain’s system of paternity leave, which came into effect in 2003 under the last Labour government, is the least generous of any country in Europe, and compares with 16 weeks of fully paid leave for new parents in Spain.
Alistair Strathern, a Labour MP and parliamentary private secretary to Reeves, said: “The current system hardwires in a gendered division of parenting that holds women back from returning to work where they want to, and we all lose out as a result.”
He pointed to modelling by the Joseph Rowntree Foundation charity and the Centre for Progressive Policy think-tank, which found that increasing UK statutory leave to six weeks at 90 per cent of a father’s earnings would generate “an economy-wide effect of £2.68bn” a year.
The cost to HM Revenue & Customs of fathers taking four weeks off on top of their two-week entitlement would be £1.15bn, the study found. But it said this would be offset by a £930mn increase in tax receipts as a result of women going back to work earlier.
Strathern said: “We already know the benefits of more time for fathers to connect with their baby, but this research highlights the strong economic and equality cases for action too.”
Freddie van Mierlo, a Liberal Democrat MP, described the current system of paternity leave as “simply not good enough”, and urged the government to “take action” to improve it.
“All the evidence suggests improving paternity leave and pay also improves equality, and now we have the evidence also that it is good for the economy,” he added.
Gender wage gaps in countries offering six or more weeks of paternity leave were 4 per cent lower than in countries with a less generous offer, according to analysis of OECD data by the Centre for Progressive Policy in 2023.
Workforce participation rates between men and women were also 3.7 per cent lower in countries offering six or more weeks.
Under the current UK system, new mothers are entitled to a minimum of 39 weeks of statutory leave, receiving 90 per cent of average weekly earnings for the first six weeks.
Maternity and paternity pay are funded primarily by the government. Employers are typically able to claim back 92 per cent of statutory payments, depending on the size of the business.
At prime minister’s questions earlier this year, Sir Keir Starmer said the government was “extending parental rights”.
“We are conducting a review into parental leave because you can’t grow the economy if parents have to choose between work and their children,” the prime minister said.
The Joseph Rowntree Foundation is also calling for a new earnings-related “paternity allowance”, which would give self-employed fathers — entitled to nothing at present — to paid leave at the equivalent of six weeks of 90 per cent of average weekly earnings.
Luke Charters, another Labour MP, said: “I’m looking forward to my next paternity leave in July to have the chance to build a strong early bond with my second son.”
“But the UK’s paternity leave system remains structurally outdated and increasingly out of step with much of Europe, constraining the UK’s economic potential,” he added. “[Reform] is a no-brainer policy.”
George Gabriel, co-founder of The Dad Shift, a campaign group, said: “Proper leave for dads means more women go back to work. They do it earlier and with more success.”
The Treasury said: “Our plan for change is on the side of working parents, which is why we are making paternity leave and unpaid parental leave day one rights under the Employment Rights Bill.
“We’re also committed to carrying out a review of wider statutory parental leave to ensure it offers the best possible support to families,” it added.
Data visualisation by Amy Borrett
