Parental Leave and Pay

Maria Miller Excerpts

Tuesday 22nd March 2022 Westminster Hall

[Justin Madders (Ellesmere Port and Neston) (Lab)]

It is a pleasure to see you in the Chair, Mrs Miller. I congratulate the hon. Member for East Renfrewshire (Kirsten Oswald) on securing this important debate and on her comprehensive introduction. It is clear that she is a passionate advocate for the many people who want to see great improvements in parental leave and pay.

As the hon. Lady and other Members outlined, there are a number of different types of parental leave, but I will focus on shared parental leave. It was originally designed to encourage more fathers to take leave after the birth of their child by allowing new parents to share up to 50 weeks of leave and up to 37 weeks of maternity pay in the first year after the child is born. As we have heard in the debate, from our constituents and from leading employment and equality groups, however, shared parental leave just does not do what it says on the tin. The scheme is not working for parents, and take-up rates remain woeful. In February last year, data provided by the Minister in a written answer to a parliamentary question indicated that take-up in 2019-20—the scheme’s fifth year—was just 3.6%, which is far short of the Government’s 25% target. That is simply not good enough.

We now know that things got worse during the pandemic: the use of shared parental leave fell for the first time since the scheme was launched. A study by EMW Law found that just 11,200 couples applied to use the scheme in 2020-21, which was a 17% fall on the previous year, when a record 13,100 couples applied. EMW’s analysis found that 598,000 women took maternity leave in the last year, indicating that just 2% of women who took some form of parental leave actually used shared leave. That is right—just 2%. That is a damning statistic. It is not surprising, therefore, that the UK is ranked only 34th out of 41 OECD countries for its family-friendly policies by UNICEF. It is also not surprising that leading groups such as Maternity Action, the Fawcett Society, the National Childbirth Trust, the Royal College of Midwives, the TUC and the Women’s Budget Group have all called on the Government to urgently rethink the scheme.

The Women’s Budget Group, an independent organisation that monitors the effect of Government policies on men and women, has called the scheme complicated and said that, because leave was shared, the onus on taking parental leave still fell more on women than men, because men tend to earn more and their salary would be harder to sacrifice at a time when families have great costs. Earlier this month, a Royal College of Midwives motion at the TUC women’s conference called for a shake-up in parental leave so that it works better for both parents.

Ros Bragg, the director of Maternity Action, a maternity rights charity, said:

“Shared parental leave was brought in six years ago now and it’s clear that it’s not working—take up is woeful. Our advice lines are full of parents who want to share parental leave, but confusion around the rules means that they are completely baffled. Add that to the low level of pay on offer and the system seems almost designed to put parents off sharing leave, rather than encourage it.”

The organisation is saying the scheme is not working because the shift to more equal parenting that it was supposed to promote is not happening. That does appear to be the case. We just have not seen the transformation in the take-up of parental leave by fathers that we would have hoped for. The scheme certainly needs reconsideration.

I will give the Minister and the Government a compliment—something that is rare for me—because they have spent millions of pounds on promoting the scheme. However, I am afraid that what we have heard is that it is too complicated and it is poorly understood by both employers and parents. The low rates of pay are a disincentive and workers do not qualify—for example those in agency work, on zero-hours contracts and, of course, the self-employed. We should be very clear that all those groups of workers deserve the same parental rights as everybody else.

When faced with all this evidence, it is hard to conclude that the Government are serious about employment rights and protections. They are not doing enough to address the real barriers in the way of shared parental leave. There was a Government consultation on high-level options for reforming family-related leave and pay, including a right to neonatal leave, pay for parents of premature or sick babies, and proposals to encourage transparency around flexible working and parental leave policies. That was launched back in July 2019, nearly three years ago, and we still have not seen the Government’s full response to it. They have only published a response to the proposals on neonatal leave and pay. The rest—we are told—will be reported on in due course.

As we have heard, the greatly heralded employment Bill is still to materialise. I am sure the Minister will tell us once again that it will appear when parliamentary time allows, which is a frustration to many. It is clear that the policies we need to support families are not good enough. They are not available to all workers, and they are not working sufficiently for those who are able to access the schemes. Parents and families deserve better, frankly. If the Government are keen to see the societal shift to equal parenting that we want to see, and if they want to tackle the gender pay gap, I urge them and the Minister to look at Labour’s Green Paper on a new deal for working people.

[Mrs Maria Miller (in the Chair)]

Before I call the Minister, I should clarify that we are due to finish this session at 7.7 pm. I am sure the Minister will want to give the mover of the motion a couple of minutes at the end, if he is going to fill all that time.