Parental Leave and Pay Review

Baroness Penn Excerpts

Tuesday 20th January 2026 Lords Chamber

[Baroness Sherlock (Lab)]

My Lords, I pay tribute to the advocacy not only of my noble friend but of her former employer, the TUC. The Government have met with many stakeholders and had many encouragements to act in lots of different directions. My noble friend is absolutely right that the system needs reform. We know that it does not work for everybody at the moment. Having a child is a joyous occasion, but it is a challenge for many parents. We need to get this right. The Government opened a call for evidence, and we had almost 1,500 responses. We need to consider those carefully and find a way forward that provides a proper balance for employers, employees and the Exchequer. We will get this right.

[Baroness Penn (Con)]

My Lords, the Minister referred to the call for evidence, which closed in August. I appreciate that there were around 1,300 responses, but it has been five months since then, with not a word of an update from the Government. Could we get an update from the Minister now on progress in that last five months and a clear timetable for what the Government will spend the next 12 months doing?

[Baroness Sherlock (Lab)]

My Lords, we are doing a number of different things. We are engaging in detail with stakeholders. We have already held 12 round tables, and we have engaged with business groups, academics and parent groups, including the CBI, the Federation of Small Businesses, the TUC, The Dad Shift, Mumsnet, and Maternity Action—lots of them. We are working through this with many academics, gathering all the evidence, finding out what we can do and looking at international comparisons. We are simply not doing nothing for the moment. We have already made a significant number of differences. The Government have introduced a range of things, such as neonatal care leave and pay, and we are looking at paternity leave and unpaid parental leave as day one rights, and at new leave for bereaved parents. There are a number of steps happening now, and we will look at whether there are things that can be introduced, and when, but we do have to get this right.

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[Baroness Sherlock (Lab)]

My Lords, the Government will consult with employers and those who are going to be affected to make sure that the implementation of the decisions Parliament has already made is done appropriately. I make no apologies for that, and the House should welcome it.

[Baroness Penn (Con)]

My Lords, the Minister talked about the evidence needed. When Quebec introduced five weeks of paid paternity leave 20 years ago, not only did it increase the take-up and length of leave taken by dads, but it increased mothers’ labour-market participation by around 7%. Does the Minister accept that, based on the information available to us today and for the last 20 years, six weeks of paid paternity leave is the single biggest policy the Government could implement to close the motherhood pay penalty? There is a good growth case for introducing it and we do not need another 12-month review to reach those conclusions.

[Baroness Sherlock (Lab)]

Despite discouragement from behind me, I am going to be gentle about this. The noble Baroness makes the important point that there is a lot out there to be learned. We are looking at the international evidence. In Great Britain we tend to be more generous with leave than, for example, other OECD nations, but we do not match up on pay. As part of the review, we have been looking at international comparisons to see what happens, recognising that there are of course differences in labour markets and tax regimes. We must be aware of the impact on our particular context. Certainly, I am hearing a lot of clear voices calling for fathers to have more paternity leave. One of the things we need to be aware of is that when shared parental leave was previously introduced, take-up was very low indeed. We need to make sure the system works well, rather than just diving into making changes.