Allow working parents to borrow the difference between statutory leave pay and their normal salary as a 0% interest loan, repaid via salary sacrifice after returning to work. We think this would ease financial stress and maintain tax/NIC contributions.
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Introduce a government-backed, interest-free loan scheme to top up statutory maternity/paternity pay to a parent’s full salary during leave. This optional scheme would be repaid via salary sacrifice once the parent returns to work. We think it would ensure parents have financial security, help retain parents in the workforce, and promote shared parenting.