Statutory Maternity and Paternity Pay

[Wera Hobhouse in the Chair]

I beg to move,

That this House has considered e-petition 715292 relating to statutory maternity and paternity pay.

It is a pleasure to serve under your chairship, Mrs Hobhouse, and a privilege to open this very busy debate on behalf of the Petitions Committee. Calling for statutory maternity and paternity pay to match the national living wage, the petition before us has attracted a great deal of public support from families who want Parliament to look again at how we help parents in the first months of their child’s life. I thank the creator of the petition, Grace Carter, and the thousands who signed it for prompting this important discussion.

The petition highlights a simple contrast that many parents experience. The national living wage is meant to ensure a basic standard of living for workers but, during maternity or paternity leave, state support falls well below that level. At present, statutory maternity pay after the first six weeks equates to just £4.99 an hour, compared with the national living wage of £12.21—55% lower than the income that the law defines as the minimum required to live on. It is hard to justify there being a minimum income for work but not for caring for newborns, and families really feel that gap in their pocket.

In response to the petition, the Government have stated that statutory payments are designed to provide “a measure of…security” rather than a full wage.

A shocking 37% of children and young people in Greater Manchester live in poverty, yet maternity pay remains far below basic living standards, as my hon. Friend just said. Does he agree that raising statutory maternity pay to a liveable wage would help to tackle the crisis of child poverty in the UK and give children a better start in life?

I agree, and those are some of the themes that I will come on to. We know, from parents such as Grace and from the stories that we will hear throughout today’s debate, that the current system leaves huge gaps and does not support families or children in the way it should.

My constituents Stacy, Caitlin, Julia and Alison maintain that the current rates of maternity and paternity pay are woefully inadequate. One advised me that they delayed having children until they were financially secure, and it is unlikely that they will consider having a second child. Does my hon. Friend therefore agree that, while introducing parental leave as a day one right is a welcome first step, the review of parental leave should include a significant rise in the rates of statutory pay to at least the level of the national living wage, and six weeks for dads on 100% pay? Current pay is far below basic living standards, and families in my constituency cannot afford leave.

My hon. Friend is a great champion for his constituents. Many of the issues that he notes will come out in the debate today. He is right to say that the Government have begun the first ever full review of parental leave and pay, which is a serious and welcome step.

I thank my hon. Friend for leading this debate. Many of my constituents, including Helen, Lauren, Laura and Kayleigh, have written to me, and Helen asked me to raise this point in particular. When she went on maternity leave, she needed support from her partner. One in four women has a caesarean birth, and the physical recovery can often take six weeks, yet their partner must return to work after only two weeks’ paternity pay. That is why we need the wide-ranging review. It is heartbreaking for mothers and fathers, who are left in a difficult position, with mothers sometimes unable even to lift and carry their young child.

I know that that is the experience of many parents, and I am sure that the Government will look at it as part of the review that they are undertaking.

Under the current arrangements, a mother or primary adopter can receive maternity pay for up to 39 weeks. For the first six weeks, that pay is 90% of average weekly earnings. For the following 33 weeks, it falls to a flat statutory rate, or 90% of earnings—whichever is lower. Statutory paternity pay lasts for two weeks at the same flat rate.

The current support for multiple birth families is inadequate. Samantha from Wincanton is a mother of twins, and after giving birth she received the same statutory maternity pay as a parent of one child, despite having to pay double for the cost of essential childcare equipment and so on. Does the hon. Member agree that there should be financial equality for parents of twins and that the Government’s forthcoming parental leave review must address that disparity?

The hon. Lady has highlighted an area that needs to be addressed.

One of the starkest, most glaring inequalities in the system is that dads who are self-employed or freelance are not eligible for anything. That is something that the Government should look at.

Another glaring missing piece is that, as well as supporting mothers and fathers, it is important that we support those who suffer the tragic loss of a baby. Will my hon. Friend therefore join me in welcoming our Government’s commitment to introduce a right for workers, including those who experience pregnancy loss before 24 weeks, to take time away from work to grieve?

Yes, absolutely. My hon. Friend is a real champion of his constituents, and I too welcome the Government’s commitment.

Shared parental leave was designed to bring flexibility, but in practice very few families can afford to take it at the current levels. The House of Commons Library notes that only 5% of eligible fathers take it up, with most saying that they cannot afford it. The United Kingdom offers one of the longest periods of maternity leave in the developed world, yet one of the lowest payment rates. The outcome is predictable: mothers often return to work earlier than they would like, fathers and partners take little to no time off and the unequal division of care that begins at birth shapes the patterns of earnings and progression for the years afterwards.

Recent research by the University of Bath and its partners, Working Families and the Fatherhood Institute, tested the impact of a more generous and flexible leave offer for fathers and modelled what would happen if paternity leave were extended from two to six weeks, to be taken flexibly within the first year and paid at a meaningful rate. The findings were striking. Better pay produced much higher take-up by fathers, improved wellbeing for both parents, maintained a closer connection of women to the workforce and lowered staff turnover for employers. When only jobs and earnings were considered, the policy still brought a net gain to the economy; when wellbeing and family outcomes were added, those benefits rose sharply. In every scenario, families and employers were better off when parental leave was properly paid.

Those are not just numbers. They mean families spending real time together, children getting a better start and businesses keeping valued staff. The evidence is clear: when leave is paid at a level parents can afford, everyone benefits.

I have been contacted by a number of constituents concerned about the requirement to have worked continuously with the same employer to qualify for statutory maternity pay. Women who change jobs shortly before pregnancy are excluded from statutory maternity pay. They miss out on the six weeks at 90% of average weekly earnings and instead receive a lower maternity allowance. That creates a financial strain, forcing people to return to work early and harming the wellbeing of mothers and children. Does my hon. Friend agree that that issue must be addressed and that we need to provide fair support for all working mothers?

I agree. The day one rights that the Government will introduce will be helpful in the context that my hon. Friend sets out. Ministers have rightly said that they want to remove the barriers that discourage people from having the children that they would like to, and parental leave and pay are at the centre of that effort. If families feel that taking leave means that they cannot get by, they will delay decisions. We know that the support needs to be in place so that they can make those choices freely. Changing the system is therefore about supporting families and maternal health and sustaining a strong economy that is built on fairness and security.

This is a valuable and important debate. Does the hon. Gentleman agree that as well as having new policies, we have to know that they are being implemented properly and fairly, and that therefore it will be necessary to require large employers to publish their policies and data in the same way that they have for gender pay? [Hon. Members: “Hear, hear.”]

The hon. Member can hear from the Chamber that there is support for that position. I am sure the Minister has heard that.

Trade unions have welcomed the Government’s review—I declare an interest here, as a proud Unison and GMB member. The GMB says that it is pleased that the Government are listening, and calls for 12 months’ maternity pay, stronger protection against discrimination and fairer rights for fathers and partners, including six weeks’ paternity leave on equal pay. The union’s model parental leave agreement also advocates paid emergency bereavement leave and carer’s leave, recognising that decent parental pay and leave boosts retention and wellbeing. The Trades Union Congress, representing over 5 million workers, warns that the current system entrenches inequality by excluding many women, the self-employed and those in insecure work.