On 10 June 2025, the Women and Equalities Committee (WEC) – following an inquiry and issuing a call for evidence into paternity rights and shared parental leave (SPL) – released a detailed report regarding the UK’s current parental leave system. The findings show agreement with the Government’s position that the current statutory parental leave system should be fully reviewed as it does not support working families effectively.
The WEC has highlighted a string of issues which it believes should be considered by the Government in its review.
Some of the key issues identified:
1. Low statutory parental pay:
Statutory pay rate is significantly below the National Living Wage, creating financial hardship and discouraging uptake, particularly among fathers and other parents.
2. Limited paternity leave:
The current system offers limited paternity leave, which is insufficient to support fathers and other parents in their caregiving roles and has fallen far behind most comparable companies.
3. Complex eligibility criteria for SPL:
The eligibility criteria for shared parental leave are complex, making it difficult for self-employed and lower-income parents to access the benefits.
Recommendations:
The WEC recommends a series of reforms (in part noted below) to address these shortcomings. While the WEC recognises the instant financial implications of reform, it maintains that the broader social and economic advantages outweigh the costs such as, strengthening mothers’ participation in the workforce, supporting their career advancement, and helping to close the gender pay gap within households:
- Increase statutory pay:
Raise paternity pay to match the first six weeks of maternity pay (i.e., 90% of average earnings) and develop a long-term strategy to raise statutory pay for all eligible parents to at least 80% of average earnings or the real Living Wage. - Immediate entitlement to paid paternity leave:
Introduce a day one right to paid paternity leave to ensure fathers and other parents can support their families from the start. - Extend paid paternity leave:
Gradually increase paid paternity leave from two to six weeks during the current Parliament. Establish a Paternity Allowance for self-employed fathers and other parents who are eligible, similar to Maternity Allowance. - Increase take-up of paternity leave:
Allow maximum flexibility in the number of blocks that paternity leave can be taken during the first year after a baby’s birth or adoption, and consider whether part of the leave should be compulsory.
- Reform Shared Parental Leave:
Simplify eligibility criteria to improve access for self-employed and lower-income parents. Consider financial incentives to encourage more equitable sharing of SPL. - Expand access to paid leave:
Extend eligibility to kinship carers, allow single parents to nominate relatives or friends to share caring responsibilities, and provide parents of multiple births with additional paid leave to ensure the system is inclusive and equitable. - Review paternity leave protection:
Consideration should be given to the current system on discrimination and whether enough protection is afforded to fathers taking paternity leave.
It is thought that the Government is to give a response to the published WEC’s report within two months. The WEC’s report and its proposed reforms aim to create a more inclusive and equitable parental leave system that supports all parents in their caregiving roles and promotes gender equality in the workplace.
What should I be doing as an employer?
As an employer, it would be beneficial to read the WEC report as it gives an insight into what changes may be implemented by the Government in the future and how your organisation may need to adapt its working practices.
Comment
The WEC’s report on the UK parental leave system sheds light on the critical issues faced by parents and offers a roadmap for meaningful reforms. By addressing the shortcomings and implementing the recommended changes, it is hoped that the UK can create a parental leave system that better supports families and promotes gender equality.
How can we help?
Rachel Hatton is a Partner in our expert Employment Law team.
Rachel has a strong reputation in all aspects of employment law, both advising employers generally on how to deal with employees in the workplace (covering disciplinary and grievance matters, redundancy, TUPE etc) together with extensive Employment Tribunal litigation experience covering complex discrimination, whistleblowing and dismissal claims and also has particular experience in developing HR support services for businesses.
At Nelsons, our employment law team in Derby, Leicester, or Nottingham can provide tailored advice on how the WEC report might affect your business or professional practice. For more information or to discuss your specific circumstances, please call 0800 024 1976 or contact us via our online enquiry form.