Employment Rights Bill

Baroness Smith of Llanfaes Excerpts

Committee stage
Tuesday 13th May 2025 Lords Chamber

[Lord Harlech (Con)]

My Lords, I support Amendments 127, 128 and 139 in the name of my noble friend Lady Penn. In so doing, I declare my interests as an employer and as the father of a four month-old son.

The amendments in this group seek to deliver a fairer, more modern and more economically rational approach to paternity leave in this country. They are modest in scope but transformative in impact. They are not about political ideology; they are about justice, equality, family well-being and economic prudence.

The case for action is overwhelming. Today in the United Kingdom we grant mothers 52 weeks of maternity leave. Fathers receive just two weeks and are paid a mere £187.18 per week for it, which is less than half the national living wage. That is not support, it is a symbolic gesture, and one that fails our families, our economy and our vision for a truly modern and inclusive society. As we have heard, the UK has the least generous paternity leave system in Europe and we rank 40th out of 43 OECD nations. While 22 OECD countries offer six weeks or more of well-paid reserved paternity leave, the UK offers just 0.4 weeks of full-time equivalent paid leave. Is that the legacy that we wish to defend?

The amendments seek to correct that imbalance. They would do three vital things: make statutory paternity pay a day-one right, just like paternity leave will be under the Bill; increase paternity leave from two weeks to six and raise the rate of pay to 90% of the father’s salary, capped at median earnings; and require transparency from large employers by mandating the publication of their parental leave policies. Each of those proposed reforms is supported by robust evidence, each is economically justified and, perhaps most importantly, each is backed by overwhelming public support.

The Government rightly propose to make paternity leave a day-one right, yet they do not extend that logic to pay. What message does that send—that a father may take time off but must go without income to do so? Incidentally, it is worth noting that that is currently the arrangement in your Lordships’ House. Perhaps if the Government are about fairness and workers’ rights, as they purport to be, that may be something that they wish to take up with the commission.

Research shows that the biggest barrier to fathers taking paternity leave is affordability. Nearly three-quarters of those who cut their leave short did so because they could not afford to stay off work any longer. What use is leave if it is unpaid?

Why six weeks, and why 90% pay? It is because we know, from the experience of countries such as Sweden, Germany, Spain and beyond, that reserved well-paid leave for fathers leads to profound benefits for families, for women’s equality, for children and for national prosperity. OECD data shows that, in countries offering fathers six weeks or more of well-paid leave, the gender wage gap is 4% smaller and women’s labour force participation is 3.7% higher. Why? It is because shared caregiving allows mothers to return to work sooner and on fairer terms.

However, this is not just a women’s issue; it is a fairness issue for all parents, and smart economic policy. The economic argument is striking. Closing the gender pay gap could boost UK economic output by £23 billion, while increasing paternity leave to six weeks at 90% pay could generate an immediate economic benefit of £2.6 billion. That is based on sound modelling endorsed by reputable analysts, including the Joseph Rowntree Foundation.

Moreover, 90% of businesses surveyed by the CBI say that inclusive workplace practices help them to attract and retain talent. Nearly three-quarters of employers that offer enhanced paternity leave report higher productivity—we were discussing productivity rates in this country in earlier groups; this is a solution to help that—and employee engagement. So let us discard the myth that this would be a bureaucratic cost; in truth, it would be a smart investment for business.

Let us also remember the human case. Better paternity leave benefits children. As my noble friend Lord Bailey said earlier, children with engaged fathers show higher academic achievement, greater resilience and stronger social skills. It benefits mothers: when care is shared, women can more easily return to the workplace and pursue their careers. It benefits fathers: longer paternity leave leads to better mental health—something that we also heard about earlier—stronger father-child bonds and more engaged parenting throughout childhood. If we want to build a society where men are not just allowed but expected and supported to care for their children, then this is the place to start.

The public are with us on this point. Some 81% agree that more generous paternity leave is good for families and for the country. Support crosses party lines: Labour, the Conservatives, the Liberal Democrats, the SNP and Reform all back this measure. This is not a fringe issue; it a mainstream demand and a moral necessity.

We have what is perhaps a once-in-a-generation opportunity to reshape the way this country supports fathers, mothers and children in their earliest days together. The proposed amendments are reasonable, grounded in evidence and long overdue. I urge the Government to accept them.

[Baroness Smith of Llanfaes (PC)]

My Lords, it is a pleasure to follow the noble Lord, Lord Harlech, who made a compelling case for these amendments. I rise to speak in strong support of Amendments 139 and 76, tabled respectively by the noble Baronesses, Lady Penn and Lady Lister.

The UK’s statutory paternity leave—just two weeks, paid at £187.18 per week—is the most limited in Europe. In many OECD countries, six weeks’ leave at the equivalent of full pay is standard. By comparison, our offer is inadequate and outdated.

Eligibility for paternity leave is also restricted. It requires continuous employment with the same employer for 26 weeks before the 15th week prior to the due date. That excludes many fathers, especially those in insecure work, the self-employed, or those working in gig economy roles. Many are forced to take unpaid leave or use holiday just to be present at the start of their child’s life.

The impact is significant. The TUC reports that over half of families struggle financially when a parent takes paternity leave, and one in five do not take the leave they are entitled to, mostly for financial reasons. Research from Pregnant Then Screwed found that 70% of fathers who did not take their full leave had to cut it short due to cost.

This is not just about finances; it affects bonding with the child and support for the mother or birthing partner, and it reinforces gender inequality in unpaid care. The lack of accessible leave for fathers limits shared parenting and is a contributor to the gender pay gap and future pension pot inequality.

The Employment Rights Bill includes provisions to address some of these issues. Clauses 15 and 16 remove the qualifying periods for unpaid parental and paternity leave. Clause 17 removes the requirement to take paternity or adoption leave before parental leave, allowing paternity and adoption leave to be taken following shared parental leave. However, these clauses fail to tackle the low level of statutory paternity pay, or to extend fathers’ and second parents’ leave entitlement past two weeks.

While the Labour Party committed in its manifesto to review the parental leave system more broadly, the Employment Rights Bill provides an opportunity in the here and now to implement changes that would make a real difference to families and people considering having children. The noble Lord, Lord Bailey, mentioned the lower birth rate—an important context that we must take into account in considering in these amendments.

Amendment 139 from the noble Baroness, Lady Penn, offers a practical and immediate step forward. It would require statutory paternity pay to be a day one right, removing unnecessary barriers for thousands of working parents.

Amendment 76 from the noble Baroness, Lady Lister, backed by the noble Baroness, Lady Penn, would mandate a comprehensive review of paid parental leave within six months of the Bill becoming law. Importantly, it sets the terms of that review: to consider a statutory, non-transferable period of paid leave for second parents, to raise pay levels, and to include the self-employed.

This is not merely a social issue; it is an economic one. Many noble Lords have mentioned the modelling by the Joseph Rowntree Foundation and the Centre for Progressive Policy, which suggests that increasing paternity leave to six weeks at 90% of earnings could contribute £2.68 billion to the UK economy by supporting more mothers to return to work and encouraging shared care from the outset.

Countries with more than six weeks’ paid paternity leave have significantly smaller gender pay and participation gaps, as we heard in the international examples shared by a number of noble Lords during this debate. The benefits are clear, and the public support reform—only 18% believe the current two-week offer is sufficient.

Other amendments in this group have been powerfully spoken to, such as Amendment 80 from the noble Lord, Lord Palmer, and Amendment 127 from the noble Baroness, Lady Penn, which both propose extended leave and fairer pay.

The case for reform has been compellingly made in this group. The Employment Rights Bill offers a real opportunity to modernise paternity leave, benefiting families, the economy and gender equality at work. I urge the Minister to consider the strength of the arguments presented today and to respond with the action that it deserves.

[Lord Ashcombe (Con)]

My Lords, I rise to speak in support of Amendments 127, 128 and 139 in the name in my noble friend Lady Penn.

I would like to think that the birth of any child is an important day in the eyes of the father as well as the mother; yet, when it comes to the parental leave granted by companies, they are treated very differently: up to 52 weeks for the mother and two weeks for the father. On this basis, as we have heard, the United Kingdom compares very unfavourably with other European nations. In addition, 22 OECD nations offer more than six weeks, paid at the equivalent of 100% of salary.

The Government’s weekly rate of statutory pay, for the two weeks that it is paid to fathers in this country, is currently the lesser of £187.18 or 90% of average weekly earnings. This is a modest amount by any measure, given that the average full-time working man is paid just under £700 per week.

We have heard from other noble Lords of the benefits to fathers themselves, as well as mothers and children, when fathers are permitted to spend longer with the family in the early period of a child’s life.

I wish to draw on my personal experience. As I have said before, the company that I work for—Marsh, a very large insurance broker—now has a mature policy on paternity leave. Fathers are allowed to take up to 16 weeks’ leave, and the company ensures that they continue to be paid the equivalent of 100% of their salary during their time away from the workplace. Importantly, their job remains open for this period to facilitate their return. This benefit was not available to me when my sons were born in the 1990s—unlike the noble Lord, Lord Russell of Liverpool, I have not yet reached grandfatherhood.

The time allowed must be taken within 52 weeks of the birth of the child, or children in the event of a multiple birth. I am sure that our competitors offer something similar, as competition for staff is an ongoing issue, and benefits count enormously in any discussion should a member of staff wish to change employer. Such a policy helps to define the culture of a company that cares not only for itself but also for the lives of its colleagues.

I do not believe that Amendment 128, which asks for parental leave policies to be published by large companies, is making an onerous request; indeed, publishing them would enable meaningful comparisons, inform jobseekers and encourage best practice across industry. I support it.

As I mentioned in an earlier group, happy staff tend to do good work. This is certainly a stressful time in any family’s life, and the mental health of staff is important, as we have heard today from my noble friend Lord Bailey of Paddington and others. It is one thing for a large company with the ability to cover a colleague’s workload to offer such a period of paternity leave, but this is obviously more challenging for smaller companies.

I am not suggesting for one moment that all companies should offer such generous periods of paternity leave as my own, much as I would have enjoyed it in my time. The birth of any child is, I hope, an exciting experience. It is also, in my experience, a somewhat nerve-wracking one, which can be ameliorated by parents being able to spend more time together during this period.

Two weeks of paternity leave is simply not enough. I encourage the Government to extend the statutory period for paternity leave to six weeks, as suggested in Amendment 127, and to provide a more generous level of salary. I hope that this will encourage fathers to take off this period, which, as I have demonstrated, is exceeded in some workplaces.

Finally, I will look briefly at Amendment 139, again in the name of my noble friend Lady Penn, on which I have changed my opinion during this debate. I believe that companies of all sizes feel that day one paternity leave is a step too far when the new employee has not even walked through the door. However, if the Government insist on this, it seems only right that fathers should receive statutory pay as a minimum. Companies obviously still have the opportunity to decide whether to go further, as would be the case for employees who have been part of the workforce for a certain period of time.

--- Later in debate ---

[Lord Hogan-Howe (CB)]

My Lords, I support Amendment 134 from the noble Baroness, Lady Grey-Thompson. She has highlighted that there is a glaring gap in our welfare system. It fails to provide adequate, immediate support for parents whose children fall seriously ill. Although the Neonatal Care (Leave and Pay) Act rightly recognised the need for non-means tested leave and pay when a child is critically ill at or shortly after birth, that protection vanishes as the child grows older. Parents whose children fall seriously ill beyond the neonatal period are left navigating benefits that are not suited to the immediate support they require.

Currently, there are only three options available for parents seeking that financial support. The first is universal credit, which is means tested and not easily accessible. The second, disability living allowance, was mentioned by the noble Baroness, Lady Grey-Thompson. It can only be applied for three months after a diagnosis and then takes an additional 20 weeks—approaching half a year altogether—to process. DLA is also a requirement for claiming a blue badge—just to give an example of how long this process takes. The third option is 18 weeks of unpaid parental leave taken in four-week blocks within a calendar year.

So, there is a gap from day one to day 90 before a parent can apply for financial help. In these cases, it appears families face an impossible choice—financial insecurity or being at their child’s side during the most traumatic moment of their young lives. This amendment addresses that gap, providing a grant to the parents of a chronically sick child from day one. The grant will be limited to the first one to three months, and approved quickly by the consultant, with a renewal every month.

According to data from the Treasury, there are approximately 4,000 children each year who could be expected to have a hospital stay of two months or more. The cost of caring for a chronically ill child is estimated to be around £750 per month. According to estimates by the charity It’s Never You, if the Government were to provide two months of support during this gap period, it would cost around £6 million—a significant amount, but at the lower end of national spending in revenue terms compared with many of the options talked about today.

This amendment seeks to extend the principles of the Neonatal Care (Leave and Pay) Act to children up to the age of 16 in cases of serious illness. It builds on a clear precedent and introduces a compassionate, practical solution—non-means tested support—at that moment of crisis.

The impact on employers will be minimal, affecting, as I have stated, only a few thousand families a year. But the benefit to those families would be profound. This is precisely the kind of change where legislation can make a life-changing difference at very little cost. I urge the Government to consider this amendment, which is in keeping with the spirit of this legislation.

[Baroness Smith of Llanfaes (PC)]

My Lords, before I deliver my remarks in relation to the amendments that I have signed, I will add my support to the amendment on miscarriage leave from the noble Lord, Lord Brennan of Canton. My Plaid Cymru colleagues in the other place also supported that amendment, so I am glad to see that it has made its way to this House, too.

Amendment 135, tabled by the noble Lord, Lord Palmer, would establish carer’s leave as a paid entitlement. I will keep my remarks brief, but I speak from lived experience. I became an unpaid carer at the age of 12. I know what it means to juggle education, work and caring responsibilities while having to repeat my story to NHS staff, college tutors, employers and the DWP. The obstacles I faced are not unique. I know that a number of carers who I spoke to in the past, and continue to do so, continue to face these obstacles. Those experiences led me to campaign on those issues, and I am proud to have influenced positive policy changes in Wales that make life a little easier for young carers trying to stay in education.

Amendment 135 would help build a safety net for the millions of people with unpaid caring responsibilities —people like I once was. The Government have made it clear that getting people back into work is a priority, and they also recognise that unpaid carers’ inability to work costs the economy £37 billion a year. Supporting carers to enter and stay in employment must therefore be seen not only as a social priority but an economic one. Introducing paid carer’s leave is not an expensive proposal. Modelling by Carers UK suggests it would cost between £5.5 million and £32 million per year, depending on the rate of compensation. Set against the cost of lost productivity, high turnover and pressure on health and social care systems, this is a modest and worthwhile investment.

Product Regulation and Metrology Bill [HL]

Baroness Smith of Llanfaes Excerpts

Report stage
Wednesday 26th February 2025 Lords Chamber

[Lord Hope of Craighead (CB)]

My Lords, I would like to say a quick word about Amendment 3 from the noble Lord, Lord Lansley. It has the attraction of introducing the word “safe” into the Bill, which does not appear anywhere else. The Bill uses the word “safety” and talks about minimising risk and so on. It recognises that products may involve some element of risk, whereas the amendment suggested by the noble Lord talks about eliminating risk. It is a desirable aim in itself, but I am not quite sure how that can be achieved. The noble Lord asked the Minister to say that the Bill is saying the same thing as he is, so he will not have to press his amendment. It seems to me that there is a real difference, and it is a very interesting difference, so I think that may be stretching the matter too far.

[Baroness Smith of Llanfaes (PC)]

My Lords, I apologise for not being involved in earlier discussions on the Bill. I rise in support of Amendment 26, which attracted me to contribute to today’s discussion. As a young woman and a user of these products, I was very shocked and surprised to hear about the different chemicals in them. A lot of young women would also be surprised and shocked to know about these chemicals, that they are not advertised, and that this information is not shared with the products’ users. I commend the noble Baroness, Lady Bennett, on bringing forward this very important amendment, and I urge the House to support it.

[Baroness Finlay of Llandaff (CB)]

My Lords, we are on Report, and I draw this House’s attention to the report by the Delegated Powers and Regulatory Reform Committee, which I am on. We certainly put the Minister through his paces and took the unusual step of asking him to give us evidence, because we felt that the Bill was skeletal and had regulatory powers, which we will come on to in a later group of amendments.

I want to use our latest discussion on Report to address support for Amendment 9. The importance of consultation has been brought up. I am most grateful— I am speaking personally and not on behalf of the committee—to the Minister for meeting with me and others from the committee to draw the consultation phases to our attention.

I hope that in summing up, the Minister will also cover the issue of consultation where there is a potential mismatch of products. The problem with lithium batteries is that people buy the batteries and chargers separately; it is when they put them together that the chance of a fire goes up dramatically, not when the right charger is bought with the right battery. We are dealing with a complex world, and I am well aware that there are an enormous number of regulations to be made, potentially, some of which are very complicated. Consultation will be critical to make sure that they are appropriate.