Parental Leave and Pay Review

Lord Watts Excerpts

Tuesday 20th January 2026 Lords Chamber

[Baroness Sherlock (Lab)]

Despite discouragement from behind me, I am going to be gentle about this. The noble Baroness makes the important point that there is a lot out there to be learned. We are looking at the international evidence. In Great Britain we tend to be more generous with leave than, for example, other OECD nations, but we do not match up on pay. As part of the review, we have been looking at international comparisons to see what happens, recognising that there are of course differences in labour markets and tax regimes. We must be aware of the impact on our particular context. Certainly, I am hearing a lot of clear voices calling for fathers to have more paternity leave. One of the things we need to be aware of is that when shared parental leave was previously introduced, take-up was very low indeed. We need to make sure the system works well, rather than just diving into making changes.

[Lord Watts (Lab)]

Does the Minister agree with me that there is no future for Britain unless it gets out this situation of low skills, low pay, poverty wages and poor conditions, with some of the worst employment and pay rates in Europe?

[Baroness Sherlock (Lab)]

My Lords, I think the noble Lord has been listening to my colleague and noble friend Lady Smith of Malvern. This Government are committed to driving up skills as a way of driving out the growth in unemployment in this country. We must invest in the skills that are out there, making sure our young people get skills, that people have the chance to re-skill, and that we give employers the skills they need. Through our industrial strategy, we are looking at some of the key growth areas, making sure we understand what will drive them, what they need in future staff, and how we invest in them. Better-skilled jobs are good for the economy and good for families. That is the way forward.