The government has launched a review of parental leave and pay, including what be the statutory minimum employers should offer.
The review, which the government was urged to commit to in May by a combination of academics, unions and charities, follows criticism from MPs last month that the current system has fundamental failings.
The review will look at statutory leave, or minimum amount that employers must provide by law and which is funded by the government. It will also consider how maternity, paternity and shared parental leave is working, or not working.
The review is part of the government’s Make Work Pay plan, announced last year, which is designed to tackle low pay, poor working conditions and poor job security.
The review, said the government “will gather views from parents, employers and experts across the country and will end with a roadmap for possible reforms”, although no timeframe for this was outlined.
Angela Rayner, deputy prime minister, said: “Through our Plan to Make Work Pay, we’re already improving the parental leave system with new day-one rights. This ambitious review will leave no stone unturned as we deliver for working families.”
Jonathan Reynolds, business secretary, added: “Campaigners have long called for change, and this government has listened. This review is our chance to reset the system and build something that works for modern families and businesses.”
The review will look at the whole system, from maternity and paternity leave to shared parental leave, to see how it can work better for parents and employers.
At the moment, it added, the system is overly complicated, pointing to the fact that one in three fathers do not take paternity leave because they cannot afford to, and that take-up of shared parental leave remains very low.
Under the current system, statutory maternity leave allows most new mothers and birthing parents to take up to 52 weeks off work.
It is paid for up to 39 weeks, with the first six weeks at 90% of that person’s average earnings before tax. The following 33 weeks are then paid at either £187.18 per week or 90% of their average weekly earnings again, whichever is lower.
However, if the new mother is self-employed or earns less than £125 a week, they become ineligible for statutory maternity pay.
Statutory paternity leave was introduced in 2003 and allows most new fathers and second parents in the UK to take up to two weeks off work.
As with maternity leave, those eligible receive £187.18 a week or 90% of their average earnings, whichever is lower, for those two weeks. Again, this does not apply if they are self-employed or earn less than £125 a week.
Shared parental leave was introduced in 2014 and allows parents to share up to 50 weeks of leave and up to 37 weeks of pay after the birth or adoption of a child.
