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The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
It is a pleasure to see you in the Chair this afternoon, Mr Pritchard. I congratulate my hon. Friend the Member for Telford (Shaun Davies) on securing today’s debate, which has been very well attended. I did not think that we would see such unanimity, but there is clearly a fresh view in the House. We would not have had this sort of turnout or this kind of debate in previous Parliaments, but there is clearly a mood among newly elected Members—and of course among older, more experienced Members—for change.
I would reference all the contributions, but we will not have time for that. As always, I am grateful to the hon. Member for Strangford (Jim Shannon) and my hon. Friends the Members for Walthamstow (Ms Creasy), for Livingston (Gregor Poynton), for Bexleyheath and Crayford (Daniel Francis), for Crawley (Peter Lamb), for Makerfield (Josh Simons), for East Renfrewshire (Blair McDougall), for Hitchin (Alistair Strathern), for Congleton (Mrs Russell), for Wolverhampton North East (Mrs Brackenridge), for Gloucester (Alex McIntyre), for Mid Derbyshire (Jonathan Davies), for High Peak (Jon Pearce), and the hon. Members for Didcot and Wantage (Olly Glover) and for Lewes (James MacCleary) for their contributions. I think that shows that across the nation there is great interest and appetite for reform. Apologies if I did not catch everyone’s contribution.
I will make a couple of points. The hon. Member for Henley and Thame (Freddie van Mierlo), and I think a couple of other Members, talked about the fact that those working in the gig economy and those who are self-employed do not qualify for any paternity leave. Clearly, we have set out in our “Next Steps” document on employment law reform a review of the worker status and self-employed issues. My hon. Friend the Member for Congleton raised, as I would expect her to, the very important points about maternity discrimination. She will know that there are measures in the Employment Rights Bill to strengthen protections against dismissal for those on maternity leave. I cannot continue without mentioning and congratulating in advance my hon. Friend the Member for High Peak on his impending fatherhood for the third time.
My hon. Friend the Member for Telford was absolutely right that this issue is about not just the father’s role, but the wider role in society and the bond between father and child. He talked about his research into how Government Departments had handled the matter. It is fair to say that, as a newly elected Government, we want to see Government being an exemplar of best practice as an employer. He expanded our often-used phrase of being “pro-worker, pro-business” to add “pro-family”. I have no difficulty with that in this context.
The Government are committed to ensuring that employed parents receive the best possible support for their work and home lives. Our plan to make work pay will ensure that there is more flexibility and security for working families. Workers must be supported to work, while balancing the essential ingredients of their wider family life, whether that is raising children, improving their own wellbeing or looking after a loved one with a long-term health condition.
Mr Connor Rand (Altrincham and Sale West) (Lab)
Will the Minister give way?
Justin Madders
I am sorry but I do not have time to take interventions.
We recognise that parental leave and pay entitlement, such as paternity leave and pay, play a key role in that balance. It is an important of the lives of parents and children for the parent to be able to take time away from work when their child is born—or first placed, as we recognise this debate covers other arrangements—so that partners can provide support and families can be together for the first time. We know the parental system needs improvement. Hon. Members can look back on previous debates, where it is clearly on the record that Labour in opposition felt that the parental system was in need of reform. I will set out some of the changes we plan to make in relation to the Employment Rights Bill.
As has been said, there have been some modest improvements in arrangements in the last 12 months. On 6 April, changes were introduced that allow parents to take leave and pay in two non-consecutive weeks, at any point in the first year after the birth or adoption of their child, and to give shorter notice for leave periods. That was a move forward but we want to go further. The Employment Rights Bill will make paternity leave a day one right. Currently, parents are eligible for leave only if they have been employed in their job for 26 weeks, by 15 weeks before the baby is due.
We will remove the requirement for a continuity of service condition for paternity leave. That will allow eligible employees to give notice of their intention to take that entitlement, from day one in the job. It will make paternity leave accessible to all employees, including those who may have low job security and low continuity of service, not only those who are able to reach the current set qualifying periods. We believe this measure will bring tens of thousands more parents into scope for the entitlement, meaning that many more families will benefit from protected time off.
We will make other changes to paternity leave to make it more flexible for parents. We will remove the restriction requiring paternity leave and pay to be taken before shared parental leave and pay. Currently, when shared parental leave and pay is taken, fathers lose their right to take any paternity leave and pay that they have not already taken. We think that is creating unintended consequences, and we will remove that restriction in order to provide the flexibility for employees to take advantage of the different types of leave available to them at the moment to care for their child in whatever order works for them and their family. That will also remove the risk that parents will lose their entitlement to take paternity leave and pay by misunderstanding the restrictions. As several hon. Members said, it is a complicated process; I had not realised that there was a cottage industry in completing forms for shared parental leave. That is clearly something we need to consider in due course.
We are making other commitments to improve parental leave. We are going to make unpaid parental leave a day one right. The provision gives an employed parent the right to take up to four weeks of leave per year for their child, unless the employer agrees to more. The maximum leave per child is 18 weeks in total. Currently, an employee must have worked in their job for a year to qualify for that entitlement. The Employment Rights Bill will remove that continuity of service requirement, and regulations will then enable parents to give notice of their intention to take that leave on the first day in a new job. We are very keen on having day one rights for employees in a whole range of areas. That, alongside the changes to paternity leave and pay, will increase flexibility and solidify and enhance economic activity for employed parents. Evidence shows that people who move jobs get wage increases. The current system of employees waiting up to a year for parental leave entitlements when they change employer means that parents are put off seeking new jobs that could have boosted their family income at a time when they need it more than ever.
We also know that the whole parental leave system does not support working families. As Members have said, we have committed to a review of the parental leave system. Inevitably, we will not be able to do that without looking at the questions raised today about how paternity leave and pay work. It is clearly part of a larger interconnected web. The review will be undertaken separately to the Employment Rights Bill, but work on planning for its delivery is already under way.
I want to give my hon. Friend the Member for Telford an opportunity to respond, so I will bring my speech to a close. We are listening carefully to the many representations we have heard. Our plan to make work pay is a core part of our Government’s mission to grow the economy, raise living standards across the country and create opportunities for all. It will help more people stay in work, improve job security and boost living standards. The whole approach we are taking will benefit families across the board. It will benefit workers and businesses beyond the important specific interventions we have talked about today. We have a very important package of measures that I am proud to be a part of delivering in this new Government.