The cost of living and statutory parental pay: e-petition 617155
A Westminster Hall debate to consider e-petition 617155, relating to the cost of living and statutory parental pay will take place on Monday 19 June 2023 at 4.30pm. The debate will be led by Catherine McKinnell MP
Rising cost of living
The cost of living increased sharply across the UK during 2021 and 2022. The annual rate of inflation reached 11.1% in October 2022, a 41-year high, before easing in subsequent months. It was 8.7% in April 2023.
Statutory parental pay
Types of statutory parental pay include:
- Statutory Maternity Pay (SMP)
- Statutory Paternity Pay (SPP)
- Shared Parental Pay (ShPP)
- Statutory Adoption Pay (SAP)
- Statutory Parental Bereavement Pay (SPBP)
- Maternity Allowance (MA)
In addition the Neonatal Care (Leave and Pay) Act 2023 will introduce a new entitlement to statutory Neonatal Care Pay once relevant secondary legislation is passed.
The rates at which these types of statutory payments are made come in two types:
- Payments made at 90% of an employee’s average weekly earnings (before tax, usually averaged across 8 weeks leading up to the 15th week before the week the baby is due).
- A flat rate, currently £172.48 a week.
In April 2023 the flat rate was increased in the Social Security Benefits Up-rating Order 2023 from £156.66 to £172.48; an increase of 10.1%.
In 2021/22, 204,200 individuals claimed Statutory Paternity Pay, whilst 350,000 individuals claimed Statutory Maternity Pay.