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New paternity leave plan could
deliver £12bn+ in
annual social benefits
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Proposal:
6 weeks' leave at 90%
pay – same as
current maternity offer
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Better value
than Shared Parental Leave, says
University of Bath
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Boosts
family
wellbeing and
maternal
employment
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SMEs lack awareness and
access to current
leave rights
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Call for
stronger statutory
offer and
better SME
engagement
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Findings presented to
cross-party MPs in
Westminster
Parliamentarians from across the
parties came together to hear new research from academics that
have been assessing the cost benefits of improved statutory
paternity leave and the need for better statutory provision for
small and medium sized businesses
(SMEs).
At the second meeting of the APPG for
Family Friendly and Flexible Working, sponsored by TLT LLP, Wates
and Zurich, the University of Bath presented the findings from a
new research project that carried out a cost-benefit analysis of
extending statutory paternity leave to six weeks at 90% of
(capped) earnings, that would match the current offering to
women. They found this reform could generate over £12 billion in
net social benefits annually. As well as representing
significantly better value for money than the current Shared
Parental Leave scheme the study found improvements in family
wellbeing and enhanced maternal employment, a catalyst for
reducing the gender pay gap.
The University of Middlesex, as part
of a wider ESRC-funded collaboration with the Universities of
Leeds and Manchester, explored the transition to parenthood for
people working in SMEs, which employ over 60% of the UK
workforce. Their research found gaps in awareness and access to
statutory leave, highlighting the need for a strengthened
statutory offering and more effective engagement with SMEs from
policymakers.
The discussion centred on how
paternity leave can and should be used to shift family and
workplace norms, with patterns of care being set early in a
child's life, and how to raise awareness amongst SMEs and
simplify the system.
, MP for Congleton and
co-chair of the APPG
said:
Improving parental leave is not
just about fathers, it's about healthier families, more balanced
workplaces and an inclusive society. We have a chance to reshape
what modern parenthood looks like with the upcoming parental
review. Reforming and investing in parental leave isn't just
timely—it's transformative, with ripple effects across
generations.
, co-chair of the APPG
said:
This research shows the huge
potential benefits of giving fathers and second parents access to
a decent, well paid period of paternity leave. It also shows that
it is essential that the government takes proper account of the
needs of small and medium businesses when conducting their review
of parental leave and make any reforms to the system easier to
navigate and use.
The government have given
themselves a long time to conduct this review, that time needs to
be well spent so it results in a clear roadmap for reform with
enhanced pay and leave for fathers as a core part of
that.
Jane van Zyl, CEO, Working
Families said:
The evidence for improving
parental leave has never been clearer. Surely, it's time we move
beyond decent, funded paternity leave being a perk afforded to
some, and instead treat it as one of the key pieces of the puzzle
in creating a fairer, more equal and healthier society where
everyone reaps the
rewards.