Statutory Maternity and Paternity Pay Debate
Full Debate: Read Full DebateDepartment: Department for Work and Pensions
Noah Law
Main Page: Noah Law (Labour - St Austell and Newquay)Department Debates - View all Noah Law's debates with the Department for Work and Pensions
(1 day, 21 hours ago)
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Noah Law (St Austell and Newquay) (Lab)
When we talk about maternity and paternity pay, we are also talking about crucial economic infrastructure—the systems that underpin participation, equality, productivity and, crucially, growth. As my hon. Friend the Member for Burton and Uttoxeter (Jacob Collier) put it, it is a public good, not a private indulgence. Right now, our system is not delivering any of that. Analysis from the Office for National Statistics shows that mothers lose an average of £65,000 in earnings in the first five years after their first child. That is not only lost household income, but lost tax receipts, skills and human capital for our wider economy.
In theory, shared parental leave offers parents flexibility, but in practice, it remains inaccessible to most households. Data from His Majesty’s Revenue and Customs shows that 17,000 claimants take it up per annum, but they are generally disproportionately higher-income families, and it is hardly a mass labour market instrument. Its design is complex, its rules are difficult to navigate and pay levels are too low to make genuine choice possible. Put simply, it is a policy that works only on paper. The inequity is most evident for self-employed fathers, who are excluded entirely from the statutory framework. A self-employed mother can claim maternity allowance, but no equivalent exists for fathers. The evidence is clear: when fathers can afford to take that leave, mothers are better able to sustain labour market participation, the family income rises and the Exchequer gains through productivity and tax receipts.