The UK government’s 2025 review of the parental leave and pay system marks a pivotal and long-overdue reform that should be very much supported.
This comprehensive review, which was the first of its kind, seeks to modernise a framework that simply no longer reflects the realities of today’s workforce or family life. It aims to simplify and improve access to maternity, paternity, and shared parental leave, addressing long-standing issues such as financial inaccessibility and underutilisation, particularly among fathers.
As part of the government’s broader Plan to Make Work Pay” the review is grounded in the principle that no parent should have to choose between financial stability and time with their child. By consulting widely with parents, employers, and advocacy groups, the government is taking a holistic approach to reform, one that recognises the importance of early bonding, maternal recovery, and shared caregiving.
Importantly, the review also has the potential to reduce the gender pay gap by encouraging more equitable participation in childcare from the outset. The result of this may take some years to be seen, but it is easy to see how this could be a potential positive outcome.
From a business perspective, a clearer, more inclusive parental leave system will benefit employers through improved staff retention, morale, and productivity. Keeping employees in the workplace is key, if there is a minimum requirement set out in statute there will be less employee movement seeking differing benefits. It also aligns with broader societal goals of equity of opportunity.
This is not merely a policy update, it is a needed and fundamental recalibration to reflect the evolving needs of working families. Family wellbeing and economic resilience can go hand in hand.
Toby Pochron is an employment partner at Freeths
