Statutory Maternity and Paternity Pay

Sarah Russell Excerpts

Monday 27th October 2025 Westminster Hall

[Sarah Russell (Congleton) (Lab)]

Lots of people in the room will have heard me speak before about the fact that statutory paternity pay is so low that men commonly do not take it, and that shared parental leave is failing in that men do not take it up at all, particularly outside London. The result is that female work and participation in the workforce are massively hindered.

What I really want to talk about is the fact that £187 a week simply does not provide enough for people to live on, and that 70% of children in poverty in the UK have at least one working parent; that group has the highest levels of poverty. We urgently need to look at what people actually need to live on when they have children, versus what we would like women to put up with. Women having been putting up with it for far too long.

The reality is that 30% of domestic abuse starts during pregnancy, and statutory maternity pay ensures that an extremely vulnerable group of women do not have enough money to live on should they choose to leave their partners. This is not about making sure that we can all have posh prams; it is fundamentally about women being able to make decisions about their safety and the safety of their children. I do not think that gets nearly enough airtime in this Chamber.

Finally, I draw attention to Maternity Action’s position on the treatment of maternity allowance for universal credit purposes. If someone receives statutory maternity pay, it is treated as pay and they get universal credit. If they receive statutory maternity allowance, it is not treated in the same way, and they are likely to be £6,000 a year worse off than they would be in an equivalent situation with SMP.

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[Peter Swallow (Bracknell) (Lab)]

I welcome the Government’s full review of parental leave as part of our promise to make work pay. It will reshape the vital support that new parents are offered in Britain, so that it can effectively and compassionately align with the changing demands of our modern world. It is vital that the review also looks at the support provided to bereaved parents, because it cannot be right that when mothers and fathers face the greatest tragedy that can affect any of us—the loss of a child—there are barriers to basic support. There is more we can do to support families at the point that their child is first diagnosed with a serious condition.

I recently met a constituent, Stephen, at a street surgery in Birch Hill, and we spoke about the challenges his family faced when supporting their daughter through her cancer treatment journey. Beyond the unimaginable emotional toll of caring for his daughter Edie, Stephen spoke to me about the often-overlooked practical difficulties that arose for his family. He told me about how the cost of fuel, hospital parking and food quickly pushed his family into debt. That is why Stephen is backing calls for Hugh’s law, which would give the parents of critically ill children who are undergoing treatment job protection and entitlement to statutory paid leave from the first day of their child’s diagnosis. Hugh’s law is, of course, named after Hugh Menai-Davis, the six-year-old son of Ceri and Frances Menai-Davis.

[Sarah Russell]

I would like to add my voice to my hon. Friend’s call for Hugh’s law and ask him if Edie was okay.

[Peter Swallow]

When I met Stephen at my street surgery, I also got the chance to meet Edie, an energetic, enthusiastic young girl running around with her sister, recovering well from her terrible ordeal. She has been so brave, and I am so proud to stand here as her MP, sharing her and her family’s story.

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[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.

[Sarah Russell]

Will the hon. Member give way?

[Rebecca Smith]

I will keep going, because I have quite a lot to say.

Those measures rightly honour the contributions of parents who open their heart and home to children in need of a loving family; 4,500 people claimed statutory adoption pay in 2024-25. In England alone, 2,940 children were waiting for adoption as of September this year, so statutory adoption leave and pay are vital for increasing the number of adoptive parents.

As the hon. Member for Hazel Grove (Lisa Smart) noted, we need to do more to support adoptive parents who are self-employed—that has come up loud and clear this afternoon. Statutory guidance allows local authorities to make discretionary means-tested payments, equivalent to statutory adoption pay. However, as we heard from the hon. Member for York Central (Rachael Maskell), the charity Home for Good discovered that 34% of local authorities have no policy in place for those discretionary payments. Worse still, according to a 2022 survey by the all-party parliamentary group on adoption and permanence, 90% of self-employed adopters are not informed about them by their social worker.

Of course we acknowledge the calls to go further with parental leave, and I am sure that the Minister heard the pleas to include kinship carers in the review. We will scrutinise the Government’s review of parental leave, launched in July this year, to ensure that it strikes an appropriate balance between supporting families and backing businesses. It is worth noting that the UK’s parental leave policies rank comparatively well against countries around the world. The UK offers the fourth longest statutory maternity leave, topped only by Estonia, Croatia and Bulgaria, and it ranks 13th globally for length of statutory paternity leave; 90 countries have no statutory paternity leave at all.

However, there is a fine balance between supporting parents to spend precious time with their child and protecting businesses from burdensome regulations. In our current economic climate, increasing statutory maternity and paternity pay would be counterproductive for businesses —small and medium-sized enterprises especially—at a time when Labour is already saddling them with extra costs. Small business owners are facing enormous pressure: 17,000 high street businesses are expected to close this year alone, and retail businesses in my constituency tell me that they now face a doubling of their business rates. The Government’s Employment Rights Bill as a whole is projected to cost businesses up to £4.5 billion annually and it could increase the number of strikes by 53%. Increased parental pay will be no help at all if people have lost their job. In this context, it is our view that significant increases in statutory maternity and paternity pay are simply unaffordable for businesses or the public sector right now. It is also not clear how the state itself would afford the change. I am sure that the Minister will address that.

We need to protect jobs for the long term. A stable household income is one of the most important factors in ensuring healthy, happy children who will grow into bold and ambitious adults. The Government’s Employment Rights Bill stifles small businesses when they are already gasping for oxygen. It overreaches, snatching choice out of the hands of business owners, who are best placed to balance the interests of their staff members with the viability of their business overall.

When it is practical and affordable, many businesses already offer enhanced maternity and paternity pay in order to retain talent—something that has been stressed this afternoon. A survey of 460 organisations by Brightmine in June 2024 found that 75% of private sector organisations and 97% of public sector organisations already offer enhanced maternity pay. Any changes to statutory maternity and paternity pay must be done after consulting businesses. We must avoid saddling them with yet more unaffordable costs at a time when they are facing immense pressure. Flourishing businesses provide stable income for families, leading to a strong economy and a brighter future for the next generation. The Conservatives’ record demonstrates our support for parents and families, but that must be done sustainably, in a way that backs businesses rather than stifling them.

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[Andrew Western]

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.

[Sarah Russell]

Will the Minister give way?

[Chris Hinchliff]

Will the Minister give way?

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[Sarah Russell]

The interrelationship between maternity allowance, which I made a point about earlier in the debate, and the £500 Sure Start grant is a problem, because if someone is self-employed, they are not eligible for that grant.

[Andrew Western]

I absolutely agree. That is one of the things that I want the review to capture. A particular range of issues is specific to self-employed people. We have already heard about that in the context of adoption, and my hon. Friend raises another example. She is entirely right to champion the rights of self-employed people in this space.