Parental Leave and Pay

Paul Scully Excerpts

Tuesday 22nd March 2022 Westminster Hall

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Paul Scully)]

It is a pleasure to serve under your chairmanship, Mrs Miller. I congratulate the hon. Member for East Renfrewshire (Kirsten Oswald) on securing this debate. I will indeed give her many more minutes than that, should she wish to fill the time.

We are committed to ensuring that employed parents have the right support available to them, so that they can balance family commitments with staying in employment. That is why our parental leave and pay entitlements are so important. I thank those who have taken part in today’s debate for their thoughtful and insightful comments, as well as their repeated engagement with this important issue.

I am pleased to say that this Government have support in place for both employers and employees on parental leave, to guide employers to do the right thing by their staff and to protect employees when they need to take time off. We have a range of leave entitlements that employed parents or parents to be may be eligible for, depending on their circumstances, which I will briefly set out. As a Government, we are committed to delivering a number of changes for new entitlements in this space, including making it easier for partners to take paternity leave, introducing neonatal leave and pay, and extending pregnancy and maternity discrimination protections.

This Government are committed to supporting the participation and progression of parents in the labour market, ensuring that it is fair and works for them. We are delivering this commitment through our framework of parental leave and pay entitlements, which are generous and flexible. Those entitlements support families whatever their circumstances or whichever stage of life they are in—from bonding with their child at birth, to grieving the loss of a child.

Parents have access to a range of leave and pay entitlements in their child’s first year, giving working families more choice and flexibility about who cares for their child and when. Our maternity leave entitlement is generous. To qualifying employed women, we offer 52 weeks of maternity leave, of which 39 are paid, which is more than three times the EU minimum requirement. For self-employed women and those who are not eligible for statutory maternity pay, maternity allowance is available. Both of those maternity payments are designed to provide a measure of financial security to help women to stop working towards the end of their pregnancy and in the months after childbirth, in the interests of their own and their baby’s health and wellbeing.

We recognise that fathers and partners play a crucial role in the first year of their child’s life, through supporting the mother and developing a relationship with the child. Paternity leave arrangements enable employed fathers and partners who meet the qualifying conditions to take up to two weeks of paid leave within the first eight weeks following the birth of their child or placement for adoption. We recognise, however, that paternity leave could be improved, so we made a manifesto commitment to make it easier for fathers and partners to take it. We will announce how we will be doing that in due course.

Shared parental leave and pay, which has been mentioned, provides parents with flexibility over their child’s care in the first year. It challenges the assumption that the mother will always be the primary carer and enables working parents to share up to 50 weeks of leave and up to 37 weeks of pay in the first year of their child’s life. That enables mothers who want to return to work early to do so, and it enables fathers and partners to be their child’s primary carer if that is the parents’ wish. When we introduced the scheme in 2015, we forecast take-up of between 2% and 8% of eligible couples. We now know that the take-up is broadly in line with those initial estimates and has increased each year. To help make shared parental leave more accessible, we launched a new online tool last year, which allows parents to check their eligibility and plan their leave.

We are currently evaluating shared parental leave, as has been said, and we will publish our findings in due course. Clearly, a lot of work has gone into that evaluation, including commissioning and interrogating information collected through large-scale representative surveys of employers and parents, and a consultation on high-level options for reforming parental leave and pay. We also commissioned a qualitative study of parents who have used the scheme, and those various data sources will help us to better understand the barriers and enable parents to take shared parental leave.

Admittedly, the analysis of the data has taken longer than originally expected, as we pivoted necessarily to prioritise work on supporting parents through the covid-19 pandemic, including ensuring that parents and individuals returning from parental leave could access the coronavirus job retention scheme. However, the evaluation remains important for the Government, and we will publish our findings in due course.

Turning to adopters, the Government are full of admiration for adopters who provide stable, loving homes to children who are unable to live with their birth parents. We recognise that it is crucial to the success of an adoption placement that an adopter takes time off work to care for and bond with their child. That is why employed adoptive parents have broadly the same rights and protections as birth parents. Adoption leave is a day one right, in line with maternity leave, which enables employed parents to take up to 52 weeks off work when they adopt a child.

We are also aware that that more needs to be done to support parents whose children are in neonatal care. In March 2020, following a Government consultation on the issue, we committed to introducing a new entitlement to neonatal leave and pay. Neonatal leave and pay will apply to parents of babies who are admitted into hospital up to the age of 28 days and who have a continuous stay in hospital of seven full days or more. Eligible parents will be able to take up to 12 weeks of paid leave on top of their other parental entitlements, such as maternity and paternity leave. Neonatal leave will be a day one right, meaning that it will be available to an employee from their first day in a new job.

As well as ensuring that parents have the leave and flexibility they need during this period, it is just as important to ensure that they are protected against discrimination and do not suffer detriment for taking that leave. That is why we are extending pregnancy and maternity discrimination protection for those returning from periods of eligible parental leave. We will ensure that the redundancy protection period applies from the point the employee informs the employer that she is pregnant and for six months after a mother has returned to work. We will also apply that protection to those taking adoption leave and shared parental leave.

Of course, our support for employed parents goes beyond the first year of a child’s life. We recognise that for a whole range of reasons, parents of school-age children need support in caring for their children throughout the various stages of their childhood and teenage years. To enable parents to offer that support, all employed parents are entitled to 18 weeks of unpaid leave for each child up to the child’s 18th birthday once they have completed 12 months of service with their employer. Employees also have access to time off for dependants, which provides a reasonable amount of unpaid time off work to deal with an unexpected or sudden emergency involving a child or dependant. In recognition of the particularly tragic circumstance of losing a young life before they have even had the opportunity to reach adulthood, we also introduced a new statutory entitlement to parental bereavement leave and pay. That entitlement gives all employed parents who meet the eligibility requirements a right to take up to two weeks off work in the 56 weeks following the death of their child.

Obviously, I appreciate the work done by the hon. Member for Lanark and Hamilton East (Angela Crawley) on extending that entitlement further. It is not something at which we are looking at this moment in time, but I will always enjoy continuing to discuss this issue and looking at what we can do for parents, because it is a tragedy to suffer a loss at any time. At the moment, we have drawn the line following the clinical measure of 24 weeks, but we also have other work in train that enables greater flexibility for all employees, including those who are employed parents. Although not a replacement for leave, having access to flexible working arrangements can be a really important tool to enable employees to balance work and family responsibilities or to support those in employment who experience a really difficult life event.

We have taken forward our manifesto commitment to consult on making flexible working the default unless employers have a really good reason not to do so. That consultation contained measures that would increase the availability and support the uptake of flexible working arrangements, including whether to extend the right to request flexible working to all employees from their first day of employment. That consultation closed on 1 December; we are now reviewing the 1,600-odd responses received, and will issue our response in due course. The consultation also introduced plans for a future call for evidence on the subject of ad hoc flexible working, through which we want to explore how non-contractual flexibility works in practice.

As we have heard, when it comes to helping employers understand how to be sympathetic and supportive to their employees, one of the most important tools is guidance. As an example of that, we recently commissioned a significant update of the guidance on managing a bereavement in the workplace, which includes a new section on supporting employees after a miscarriage before 24 weeks of pregnancy and offers examples of best practice. That guidance can be found right now on the ACAS website.

Another example is the flexible working taskforce, which is a partnership across business groups, trade unions, charities and Government Departments that shares knowledge and best practice on all forms of flexible working and takes on discrete pieces of work. Over the past 18 months, that taskforce has produced advice and guidance to support employers who may be interested in introducing hybrid working arrangements for the first time. Advice published by ACAS in July set out the key legal and practical issues associated with this way of working, and a practical guide offering top tips to businesses on how to effectively implement hybrid working was published independently by taskforce members in December, as part of our approach to support employers and employees to have conversations about what is happening in their lives and what support they need.

Employers are best placed to understand their own people and to develop a solution that works for the individual, as we heard from the hon. Member for Strangford (Jim Shannon) when he talked about happy employees being more productive employees. Clearly, there are great examples of companies treating their employees with compassion and going beyond the statutory minimum. That approach is valuable to the employer as well as to the employee, through the increased loyalty of employees.

I would like to reassure the hon. Member for East Renfrewshire. She asked about employment measures, but I am afraid that not much has changed since we last spoke about this, because Her Majesty has not yet told us the legislation for the next Session, since we have not finished this one. Nevertheless, the Government are committed to building a high-skilled, high-productivity and high-waged economy that delivers on our ambition to make the UK the best place in the world to work and to grow a business. We will continue to do that by championing a flexible and dynamic labour market. As we build back better, we will bring forward employment measures to make it easier for people to enter and remain in work as soon as parliamentary time allows. The hon. Member for Ellesmere Port and Neston (Justin Madders) can tick away on his employment Bill bingo when we do so.

I reiterate the Government’s commitment to support parents in the workplace and to enable them to be where their families need them while staying in employment. I have highlighted some of the broad range of support that the Government have in place to support parents through different life events, but employers also have an important part to play, because they know their employees. A supportive workplace brings benefits to both the employee and the employer, including on productivity and wellbeing. Once again, I thank the hon. Member for East Renfrewshire and everyone else for their contributions to this important debate, working hard to support parents in the workplace.