Parental Leave Review

Debate between Lindsay Hoyle and Justin Madders

Tuesday 1st July 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

With permission, I will make a statement on the Government’s manifesto commitment to review the system of entitlements to parental leave.

This Government are dedicated to delivering more for working families, and our plan to make work pay is central to achieving that, with the mission to grow the economy, raise living standards across the country and create opportunities for all. It will help people to stay in work, improve job security and boost living standards, which includes helping working parents and supporting them to balance their work and home lives.

Parental leave and pay entitlements play a key role in that. We know that the arrival of a child, whether through birth or adoption, is a transformative time in a family’s life. We also know that the current parental leave system does not support modern, diverse working families as well as it could. Parents’ groups and campaigners have long argued that our paternity leave is too short and compares poorly with other countries. While shared parental leave is available to families where fathers and partners want to take a longer period of leave, evidence shows that take-up is very low, with the parental rights survey reporting that 1% of mothers and 4% of fathers use this entitlement. The survey also showed that 35% of fathers do not take paternity leave for financial reasons.

We are committed to improving the parental leave system and are already taking action. Improving the system will have the added benefit of increasing workforce participation by helping employers to fill vacancies and will contribute to increased productivity, benefiting the economy.

The Employment Rights Bill is one vehicle through which we are improving the parental leave system. The Bill makes paternity leave and parental leave day one rights, meaning that employees will be eligible to give notice of their intent to take leave from their first day of employment. It contains a number of other measures that will improve the support that working families receive. It will put in place legislation that makes it unlawful to dismiss pregnant women, mothers on maternity leave and mothers who come back to work for a six-month period after they return, except in specific circumstances. It will also make flexible working the default, except where it is not reasonably feasible, and requires that all large employers produce action plans that contribute to closing the gender pay gap.

I am pleased to announce that the Government are going further and taking another step forward in delivering improvements for working families. I am pleased to launch the parental leave review today, fulfilling our commitment in the plan to make work pay to review the parental leave system to ensure that it best supports working families. The review is part of delivering the plan for change, and links two of the Government’s missions: kick-starting economic growth and breaking down barriers to opportunity. The work of the review will support the Government’s commitments to raise living standards and give children the best start in life, and links to work being undertaken to alleviate child poverty. It presents a much-needed opportunity to consider our approach to the system of parental leave and pay, giving due consideration to balancing costs and benefits to both businesses and the Exchequer. I welcome the opportunity today to provide the House with more detail on the review.

The review will be co-led by the Department for Business and Trade and the Department for Work and Pensions, the two Departments with the main responsibility for the current parental leave framework. There will, however, be close working across Government to deliver this review to reflect the wide influence the parental leave system has on policies in other Departments.

The current system has grown up gradually over time. The first maternity arrangements were set out in the Factory and Workshop Act 1891, which introduced the idea that women who work in factories cannot work for four weeks after giving birth. Subsequent entitlements have been added to support specific groups as needs have emerged, which has created a framework that does not always work cohesively as a whole. This piecemeal approach to parental leave and pay means that the system has never had an overarching set of objectives that it should deliver. This review presents an opportunity to reset our approach to and understanding of parental leave and pay, and what we want the system to achieve.

We will use the review to establish what Britain needs from a parental leave and pay system to support our modern economy and deliver improvements for working families. We have set out four objectives as our starting point, which we intend to test as we progress the review to ensure we are truly reflecting the needs of the nation.

Our first objective is to support the physical and mental health of women during pregnancy and after giving birth to a child. Our second objective is to support economic growth by enabling more parents to stay in work and advance in their careers after starting a family. This will focus on improving both women’s labour market outcomes and tackling the gender pay gap.

Our third objective is to ensure that there are sufficient resources and time away from work to support new and expectant parents’ wellbeing. This will include facilitating the best start in life for babies and young children, and supporting health and development outcomes. Our fourth objective is to support parents to make balanced childcare choices that work for their family situation, including enabling co-parenting, and providing flexibility to reflect the realities of modern work and childcare needs.

Three cross-cutting considerations will also be factored into our review. The first is to build a fair parental leave system between parents within a family, different types of parents and parents with different employment statuses. The second consideration is to balance costs and benefits to businesses and the Exchequer, as well as to examine how the system can support economic opportunities for businesses and families. As part of this, the review will consider opportunities to make the process surrounding parental leave simpler for both businesses and parents. The final cross-cutting consideration focuses on improving our society—for example, by supporting the child poverty strategy, and by shifting social and gender norms, including around paternal childcare.

All current and upcoming parental leave and pay entitlements will be in the scope of the review. This will enable us to consider how the parental leave and pay system should operate as a complete system to improve the support available for working families. This broad scope means that the review will consider the individual existing entitlements, and how best to ensure improvements can be delivered for working families, as well as related wider issues and themes. For example, the review will consider whether the support available meets the needs of other working families who do not qualify for existing statutory leave and pay entitlements, such as kinship carers and self-employed parents. It will also consider how the pay system works more broadly.

This will be an evidence-based review that reflects and considers the perspectives and experiences of those who engage with the parental leave and pay system. We welcome views from, and intend to engage constructively with, a wide range of external stakeholders, including groups such as trade unions that represent both parents and families, and employers or employer representatives. There will be opportunities for stakeholders to contribute views and expertise throughout the review, including through a call for evidence, which launches today. This call for evidence seeks initial evidence specifically in relation to the objectives that will set the foundation for what we want our system to deliver.

The review launches today. We expect it to run for a period of 18 months. The Government will conclude the review with a set of findings and a road map, including next steps for taking any potential reforms forward to implementation. This is an important step forward to ensure that our workplaces are fit for the 21st century, and I commend this statement to the House.

[Mr Speaker]

I call the shadow Minister.

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[Justin Madders]

I take it that the shadow Minister is not in support of the review. May I correct him on a few points? Of course it is not a coincidence that this is being announced today; our manifesto was clear that we would launch the review within one year of taking office, and, of course, this week we do celebrate that astounding election victory. On his point about statutory paternity pay, it is £187.18. We know from representations that we have already received that many do not think that that is the right level. He mentioned how Tony Blair and Gordon Brown refused to open this box, but it was their Government who gave us the right to statutory paternity pay and a number of other family-friendly rights, of which the shadow Minister himself has taken advantage.

I think we know where the Conservative party stands on these issues when their leader says that maternity pay has gone too far. I do not quite know what she meant by that, but I think it means that the Conservatives would be rolling back some of the well-earned gains in family-friendly policies.

The shadow Minister, as I would expect, does not miss an opportunity to mention the Employment Rights Bill. May I suggest that he has a word with his shadow Secretary of State who clearly has not read it? I refer to his recent open letter to businesses in which he mentioned a number of issues with the Bill. First, he complained that we are creating the fair work agency, conveniently forgetting that in both the 2017 and 2019 Conservative party manifestos, there was a similar pledge to create a single enforcement body. He referred to an introductory measure on electronic industrial action balloting. The Conservatives, of course, will be big fans of electronic voting given the number of leadership elections in which they have taken part in recent years. The shadow Minister needs to inform his shadow Secretary of State that that is not in the Bill. I do not know where he thinks that has come from. We are going to introduce electronic balloting, but it is not in the Employment Rights Bill, because we already have existing powers to implement it.

In that open letter, the shadow Secretary of State mentions, most curiously, that the Bill will include

“a trade union ‘right to roam’”.

I do not know if he was searching for a new mobile phone contract at the time, but no such right exists.

The shadow Minister talked about the effects on appointments, but he needs to keep up to date: the latest Lloyds business barometer says that business confidence is now at a nine-year high and that 60% of firms expect higher staffing levels in the next year. That is a sign that this Government are getting things done.

[Mr Speaker]

I call the Chair of the Women and Equalities Committee.

[Sarah Owen (Luton North) (Lab)]

It is great to see so many hon. Members, with almost every party represented but one: there are four empty seats where the Reform UK MPs sit. They like to bang on about family values, but when it comes to actually standing up for dads and for parents, they are nowhere to be seen.

I thank the Minister for acting on the importance of shared parental leave. On paternity leave, as someone who had a caesarean section, I was so grateful to my husband’s employers for granting him more than two weeks’ leave; as everyone knows, mothers are not meant to lift even a kettle for six weeks after a c-section, which makes things impossible. However, we also know that not everybody is that fortunate, and that is especially true for self-employed people. The Women and Equalities Committee took evidence on parental leave and heard that nearly a third of self-employed dads and other parents did not take a single day’s leave following the birth of their child, so how will this review ensure that self-employed parents’ needs will be taken into account?

[Justin Madders]

I thank the Chair of the Women and Equalities Committee for her contribution. She raises an important point and we are studying her Committee’s recent report on the issue with interest. It is important that we look at how people in different forms of employment are able to take advantage of parental leave, in one form or another. That is important not just for providing physical assistance in the circumstances that my hon. Friend mentioned, but because the parent should be there, if they can, to bond with the child in those early weeks, and the review will definitely consider that.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

Oral Answers to Questions

Debate between Lindsay Hoyle and Justin Madders

Thursday 12th June 2025 Commons Chamber

[Justin Madders]

My hon. Friend is absolutely right: there are so many echoes of the minimum wage debate, it is uncanny. As time has shown, the minimum wage has raised living standards in this country and it is something we are very proud to have implemented. We are looking to bring more investment across the economy. Recent surveys have shown that business confidence is increasing as a result of decisions made by this Labour Government.

[Mr Speaker]

I call the shadow Minister.

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[Justin Madders]

We had a Westminster Hall debate last week in which a number of these issues were raised. The hon. Gentleman will know that we are undertaking our fourth review of the GCA. I encourage him and other hon. Members to contribute to it. We are considering the points made in that debate, and we will welcome any comments in the review.

[Mr Speaker]

I call the Chair of the Select Committee.

Oral Answers to Questions

Debate between Lindsay Hoyle and Justin Madders

Thursday 13th March 2025 Commons Chamber

[Justin Madders]

The hon. Member could not have put it better. He has explained the benefits of trade union membership, which is something that Members on the Conservative Benches clearly do not understand.

[Mr Speaker]

I call the Father of the House.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I thank my hon. Friend for her question. The Groceries Code Adjudicator’s annual survey shows high levels of compliance by the supermarkets. However, a statutory review will actually commence next month, and I would encourage her and all stakeholders to contribute to it.

[Mr Speaker]

Now it is Chris Law’s turn.

Competition and Markets Authority Chairman

Debate between Lindsay Hoyle and Justin Madders

Wednesday 22nd January 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

Following the resignation of the chair of the Competition and Markets Authority, Marcus Bokkerink, the Secretary of State has appointed Doug Gurr as the interim chair for a period of up to 18 months while our new permanent chair is appointed. The Secretary of State has expressed his gratitude for Marcus’s leadership of the board of the CMA since his appointment in September 2022, and for the work of the CMA in that time, particularly in response to cost of living pressures.

As the Prime Minister set out in his speech at the international investment summit, this Government will ensure that every regulator in the UK focuses on growth. Given Doug Gurr’s background and experience as an entrepreneur and business leader, and his clear under-standing of the importance of new and developing technologies such as artificial intelligence, he will bring the necessary strategic leadership to the CMA to enable it to promote growth for the benefit of businesses and consumers. As set out in the industrial strategy Green Paper, the Government will shortly be consulting on a new growth-focused strategic steer for the CMA. While respecting the independence of the CMA and the decision making of its panel members, the steer will be clear about the Government’s expectations of the CMA in supporting growth across the economy.

[Mr Speaker]

I call the shadow Secretary of State.

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[Justin Madders]

My hon. Friend is absolutely right. Growth is the No. 1 mission for this Government, and getting the balance right between protecting consumers and driving up growth in the economy means that we all benefit. That is something we are very clear about on this side of the House, and something that the last Government failed to deliver on.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

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[Justin Madders]

Yes, he was right. That is the message that the Prime Minister sent out to the regulators at the investment summit, and it is why they have been invited in to give their ideas on growth. We do not think that asking regulators how they are going to stimulate growth is a problem—that is the No. 1 mission of this Government, and everyone should be signed up to delivering on it.

[Mr Speaker]

I call Llinos Medi.

--- Later in debate ---

[Mr Speaker]

It might be worth the hon. Member putting in for an Adjournment debate.

[Justin Madders]

I thank the hon. Member for her question. It is important that consumers and small businesses operate on a level playing field; it is also correct that we are very keen to see more growth delivered. We think that will benefit everyone in the economy, but I take the point that a balance has to be struck.

[John Grady]

rose—

Oral Answers to Questions

Debate between Lindsay Hoyle and Justin Madders

Thursday 31st October 2024 Commons Chamber

[Justin Madders]

I have to educate the hon. Member on what trade unions do. ASLEF is not a union in the adult social care sector, which is what we are talking about here. We want to work on a tripartite basis—business and workers, together with the Government—to get terms and conditions right. Given that we had the lowest increase in living standards on record under the Conservative Government, I would have thought that he would want to support that too.

[Mr Speaker]

I call the shadow Minister.

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[Justin Madders]

Absolutely. We are determined to ensure that the particular sectors that my hon. Friend mentioned, where low pay and insecurity are rife, will benefit. We are working closely with businesses and employers across the spectrum to ensure that we get the proposals right because, for too long, insecurity and low pay have been rife in the UK economy. That has to change.

[Mr Speaker]

I call the shadow Minister.

--- Later in debate ---

[Justin Madders]

I gently point out to the hon. Lady that that represents a 0.4% increase on businesses’ total costs—a small price to pay for what the impact assessment says

“will strengthen working conditions for the lowest-paid and most vulnerable in the labour market, increasing fairness and equality across Britain. It will have significant positive impacts on workers who are trapped in insecure work, face discrimination, or suffer from unscrupulous employer behaviour like ‘fire and refire’ practices”.

If the hon. Lady does not support that, I am sure that she can talk to her constituents about why.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

Post Office Horizon

Debate between Lindsay Hoyle and Justin Madders

Tuesday 30th July 2024 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

As hon. Members will know, convictions across the UK have been quashed through recent legislation, and those affected are now able to apply for financial redress under the Horizon convictions redress scheme. The scheme will be wholly delivered by the Department, not the Post Office. All the forms of redress, including those pursued under the group litigation order, will be delivered by the existing schemes.

Since taking office, this Government have continued to work closely with the Scottish Government and the Northern Ireland Executive to identify those who have had their convictions overturned. Letters have started to be issued to those eligible that will confirm that their conviction has been quashed and provide further information on how to access financial redress. But I would encourage those who believe that they are eligible not to wait for a letter. Please do come forward now and register for the Horizon conviction redress scheme.

We have put guidance on gov.uk to help people know where they stand: whether their conviction has been overturned and, if eligible, how to apply for redress through the registration and application process. Victims will be able to choose from two options: first, they can either accept a fixed settlement of £600,000; or, secondly, they can choose a full claim assessment if they believe their losses exceed £600,000 and wish to have their application fully examined by the Government.

No matter what route they choose to take, once an applicant’s eligibility is confirmed, they will be paid a preliminary payment of £200,000. We are making sure that they can access historical data from both the Post Office and His Majesty’s Revenue and Customs to support their decision and the application. We also recognise that, with the best will and support in the world, in a few cases, some information may not be retrievable, but I assure hon. Members that, even in those cases, we will do all we can to ensure that a fair offer is made to sub-postmasters who have suffered this terrible injustice. This House was united in the last Parliament in its wish to see justice for sub-postmasters. In this Parliament, we intend to deliver on that.

[Mr Speaker]

I call the shadow Minister.

--- Later in debate ---

[Mr Speaker]

Order. May I just say that Members should speak through the Chair, not to the Minister? As an established Member of this House, I am sure that the right hon. Gentleman would not want to start on the wrong foot with me.

[Justin Madders]

My right hon. Friend makes an important point. We want payments to be processed as quickly as possible. Data is updated monthly on the Government website. We can see that, in terms of the group litigation order, 210 offers have now been made. Under the Horizon shortfall scheme, of 2,730 claimants, altogether 2,417 offers have been accepted. Of the 110 convictions on the overturned convictions scheme, initial payments have now been made to 103 of those people.

[Mr Speaker]

We come to the Liberal Democrat spokesperson.

Post Office Horizon Scandal

Debate between Lindsay Hoyle and Justin Madders

Thursday 18th July 2024 Commons Chamber

[Mr Speaker]

Order. I gently say to the Chamber that it is a new beginning, and we want to start on the right foot, not the wrong foot. It is difficult to go from Government to Opposition, but there is a two-minute limit for the Opposition and a one-minute limit for the third largest party. Please let’s stick to the rules and start as we mean to go on.

[Justin Madders]

Thank you, Mr Speaker.

The shadow Secretary of State set out the intent he had in government, which we intend to carry on. We also believe there is absolutely no reason why we should not continue to work on a cross-party basis, as we agree with him on the importance of delivering fast and fair compensation, which is at the heart of all we are trying to achieve. We will be making a statement by the end of July, before the summer recess. As the shadow Secretary of State has already noted, we have committed to do that. We are working at pace with officials, victims and those who have been affected by the scandal to work up the detail, and an announcement will be made in due course.

[Justin Madders]

My hon. Friend raises an interesting point. In recent years, we, as Members, have reflected on the question of political accountability for decisions that have been taken and actions that have taken place over many years. We will be reflecting on how best to ensure there is genuine political accountability in the system.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

--- Later in debate ---

[Mr Speaker]

I do not see why that point should have come last. [Laughter.]

[Justin Madders]

What a surprise to see the hon. Member in his place today. I am sure that this will not be last time that we have an exchange across the Dispatch Box, but he does raise an important point. We absolutely agree that we need to make it as easy as possible for postmasters to raise their concerns and to get the justice that they have so long waited for.