Parental Leave: Pay and Allowances
1/310. What discussions she has had with Cabinet colleagues on the adequacy of levels of maternity and paternity pay and allowances.
The Government keep the rates of parental pay under review. Following the Secretary of State’s announcement in a written ministerial statement to Parliament on 30 October, and subject to parliamentary approval, parental pay will increase in line with the consumer prices index at the rate of 1.7% from April 2025.
At less than half the rate of a full-time national minimum wage, maternity and paternity pay is so low that most parents simply cannot live on it, and they are often forced into debt, or forced back to work sooner than they would like. A poll of fathers found that two-thirds of them would take more leave if paternity pay were higher. If we want to give families choice in how they care for their children in those precious early months, will the Minister discuss with colleagues in the Treasury and the Department for Business and Trade how we can boost rates of maternity and paternity pay?
I understand the point that the hon. Lady is making, but requests for a significant uplifting of benefits come with a price tag and I heard no suggestions as to how that would be paid for. On support for parents, the Government committed in their manifesto to review parental leave to ensure that it best supports working families. Further details of that review will be announced in due course.
Recent damning statistics highlighted that just 2% of parents made use of shared parental leave in the past year, with uptake skewed towards the highest earners. Given the importance of breaking down barriers to equal parenting for employment, will the Minister ensure that he works with the Department for Business and Trade as part of the upcoming review to ensure that enhanced parental leave is considered, including strengthening paternity leave entitlements?
My hon. Friend is correct to highlight not just the importance and benefits of shared parental leave, but the disparity between those who make use of it. I will, of course, maintain dialogue with the Department for Business and Trade as we go through that review, but I would also welcome a discussion with my hon. Friend about his ambitions and ideas for how we could take that forward.