Statutory Maternity and Paternity Pay Debate
Full Debate: Read Full DebateLola McEvoy
Main Page: Lola McEvoy (Labour - Darlington)Department Debates - View all Lola McEvoy's debates with the Department for Work and Pensions
(1 day, 16 hours ago)
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Rebecca Smith
On what the Leader of the Opposition said, I am not 100% sure of the quote, so I am not going to comment on that. I think it was taken quite significantly out of context. On the Bill Committee, I will continue saying it—[Interruption.] At the end of the day, I am the one here speaking this afternoon, so I am at least interested in this debate—let’s keep talking.
We understand the challenges facing families, which is why we updated the system to enable greater flexibility in how parental leave is taken. We wanted to ensure that parents are supported to spend the precious first few weeks and months bonding with their newborn, promoting healthy attachment that sets their child up for a successful future.
Rebecca Smith
I will keep making progress, if I may. [Interruption.] It is not because I do not want to take the intervention, but because I am on a time limit.
We introduced the biggest expansion of childcare in England’s history—it is heartening to see that Labour has continued our roll-out, despite its criticisms at the time. We backed new legislation to provide additional paid leave to parents whose baby requires neonatal care, allowing them to spend more time with their baby in hospital instead of worrying about returning to work or having to take unpaid leave. We strengthened protections for pregnant women and new parents against redundancy, removing workplace discrimination and improving job security. We introduced shared parental leave for new parents, allowing parents to share up to 50 weeks of leave and up to 37 weeks of pay after the birth or adoption of a child.
However, more needs to be done to encourage uptake of shared parental leave. We know that of fathers who did not take shared parental leave, 45% were not even aware that it existed, according to a 2023 review under the previous Government. Awareness is particularly lacking among smaller businesses: 94% of managers in workplaces with 250 or more employees were aware of the provision; that dropped to 71% in workplaces with fewer than 50 employees.
Importantly, our Government brought statutory adoption leave and pay in line with statutory parental leave, ensuring that adoptive parents had the same rights as birth parents. Adoptive parents also became eligible for paid time off for up to five adoption appointments—something that I personally think is entirely welcome.
I thank my hon. Friend for her intervention. That is one of many really useful suggestions that have been made today, which I undertake to feed into the review for consideration.
Let me return to what I was saying about the requirement for a fairer system. We should not pretend that there will be easy answers as we go through this work—some difficult balances will need to be struck. The benefits of allowing parents flexibility must be weighed against the direct costs to employers and the public purse.
The petition asks us to increase the rate of statutory maternity and paternity pay to match the national living wage. We should note that maternity pay has never been intended to fully replace a mother’s earnings, and any moves in that direction should not be made lightly. The costs of statutory parental pay are largely paid by the taxpayer, with employers able to reclaim at least 92% of the cost from HMRC.
Lola McEvoy
I have raised many times in this Chamber the inequality of paternity rights when it comes to unfair dismissal. Addressing that would not cost the taxpayer or businesses anything, because protection is already in place for those who take shared parental leave, maternity leave and adoption leave. Will the Minister reflect that point in the review as well? He did not mention paternity when he gave us his overview of the review’s purpose, but I think that all Members here agree about the importance that dads feel they can take time off, especially when they are eligible to do so.
My hon. Friend is absolutely right. If I did not refer to that issue, it was because I was trying to respond to an intervention and it was an oversight on my part. It is incredibly important and I will ensure that it is considered as part of the review.
I return to the petition’s specific ask of matching parental pay with the national living wage. The Government currently spend about £3 billion a year on statutory maternity pay and maternity allowance alone. This petition asks us to more than double the rate of maternity and paternity pay—in fact, it seeks a 144% increase. That would be far from a trivial expense at a time of difficult fiscal choices. I am not saying that that will not happen at this point in time—I do not know; we need to go through the process of the review—but we have to take the time to carefully consider such questions, given the significant financial implications, before any decisions are made.
I am cognisant of the time, so I will skip forward by reminding Members that maternity and paternity leave are just one part of the wider picture of financial support for parents. Maternity allowance is available for self-employed women and employed women who do not already qualify for statutory maternity pay. Child benefit is available from the date of a child’s birth, and the Sure Start maternity grant offers a £500 lump sum to mothers receiving one of a range of qualifying benefits.