Iceland has been named the best place in Europe for professional parents, according to new research by Click Offices.
The index that it created analysed 35 European nations on paid leave, childcare affordability and workplace equity.
Iceland secured the top spot with a score of 91.7 out of 100, followed by Norway (90.3) and Sweden (88.9). The findings suggest that these countries consider childcare as essential infrastructure, particularly as Sweden’s ‘maxtaxa’ policy caps costs at 3% of household incomes.
In contrast the UK ranked in 20th place. This is driven largely by a lack of financial support for new parents. While the UK offers 52 weeks of maternity leave, when calculated as a full-rate equivalent, or the actual monetary value of the pay received, the year of leave is worth 12 weeks of full salary for mothers.
Childcare costs in the UK take up 30% of earnings, while parents in Iceland and Sweden spend 3% to 5% of their earnings on childcare.
Meanwhile, Malta, which ranked eighth, has incentivised returning to work after having a child by making childcare effectively free for all working parents. This improved its fairness score, which was 95/100, by enabling mothers to re-enter the workforce without any financial penalties.
Luxembourg and Belgium have effectively closed their gender pay gaps, with Luxembourg having a negative pay gap of -0.9%.
Shane Duffy, managing director of Click Offices, said: “The UK’s year-long maternity leave is a hollow benefit when you look at the actual cash in the bank. On paper, a 52-week entitlement looks world-leading, but once you factor in low statutory pay and some of the highest childcare costs on the planet, it becomes a financial endurance test for parents.
“While countries like Iceland and Norway treat childcare as essential infrastructure, the UK is effectively charging parents a nursery tax that swallows a third of their earnings. Until we address this cost to work, the UK will continue to trail behind its European neighbours in supporting professional families.”
