Self-employed: Paternity Leave

Baroness Penn Excerpts

Wednesday 20th May 2026 Lords Chamber

Asked by

[Baroness Penn]

To ask His Majesty’s Government what steps they are taking to provide paternity leave to the self-employed.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Innovation and Technology (Baroness Lloyd of Effra) (Lab)]

The Government are undertaking a review of parental leave and pay, which presents a much-needed opportunity to consider our approach to the system and whether the support available meets the needs of modern working families, including the self-employed. The review will conclude in early 2027 with a set of findings in which the Government will outline next steps for taking any potential reforms forward to implementation.

[Baroness Penn (Con)]

My Lords, why do the Government need another review to tell us what is obvious: that excluding nearly one in four fathers from our system of paternity pay is unfair and needs fixing? Becoming a new father can be stressful and expensive, as well as wonderful and joyous. But if the Government are committed to supporting families now with the cost of living, can the Minister commit to closing this loophole in 2026, not in another year’s time?

[Baroness Lloyd of Effra (Lab)]

I thank the noble Baroness for her advocacy for the importance of paternity leave and parental rights. We have already delivered real change through the Employment Rights Act. On 6 April, paternity leave and unpaid parental leave became day-one rights. Alongside these changes, we are undertaking this comprehensive review of the system to consider whether further reforms are required. We have engaged with a broad range of stakeholders, alongside evaluating other sources of evidence. We have received almost 1,500 responses to the call for evidence, and it is important that we consider these carefully before deciding what further reforms are required.

--- Later in debate ---

[Baroness Lloyd of Effra (Lab)]

I am pleased to say that, as a result of the Employment Rights Act, we have established new rights for parents through paternity leave and the unpaid parental leave day-one rights to bring more parents into scope, so that they can access parental leave and support their families.

[Baroness Penn (Con)]

Does the Minister recognise that the lack of proper pay is the number one reason for a lack of take-up of existing rights? Will she confirm whether the new day one right to paternity leave is for paid or unpaid leave?

[Baroness Lloyd of Effra (Lab)]

The paternity review will look at whether we should extend the current entitlement for qualifying employees under the new rights that have come in, which for qualifying employees is two weeks’ leave paid at the statutory rate. The parental leave and pay review is considering whether this entitlement is sufficient.