Statutory Maternity and Paternity Pay

Rebecca Smith Excerpts

Monday 27th October 2025 Westminster Hall

[Rebecca Smith (South West Devon) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Hobhouse. I thank the hon. Member for Burton and Uttoxeter (Jacob Collier) for so competently introducing the debate, with an excellent speech, and I thank everyone else who has contributed to it.

I was particularly struck by the comments made by the hon. Member for Bracknell (Peter Swallow) about Hugh’s law and the need for further work on bereavement support. That reminded me of one of my constituents, Clara Gilley, who has a very unusual brain cancer. The real-life issues that she faced, and which I was dealing with as her MP, were the travel costs to Bristol—that is a long way to go from Devon—and the costs of adaptations. I recognise the calls for us to consider how we can help parents whose children are sick and unwell with the costs of that, and I hope that the Minister heard them. I have seen it at first hand, and I am sure lots of other Members will have seen similar issues.

The Conservatives are proud to be the party that champions family life. We recognise that strong families are the bedrock of a healthy society—that is something else that has come up this afternoon. Britain is one of the best places to have a child and raise a family, following measures introduced by Conservative Governments to extend free childcare, support flexible working and enable shared parental leave.

[Alex McIntyre]

As the hon. Lady is so proudly championing her party’s record, will she stand by the comments by the Leader of the Opposition, who said that maternity pay is “excessive”, and by a donor to the Leader of the Opposition, Luke Johnson, who told the Employment Rights Bill Committee that the worst thing about the Bill is its further extension of paternity rights?

[Rebecca Smith]

On what the Leader of the Opposition said, I am not 100% sure of the quote, so I am not going to comment on that. I think it was taken quite significantly out of context. On the Bill Committee, I will continue saying it—[Interruption.] At the end of the day, I am the one here speaking this afternoon, so I am at least interested in this debate—let’s keep talking.

We understand the challenges facing families, which is why we updated the system to enable greater flexibility in how parental leave is taken. We wanted to ensure that parents are supported to spend the precious first few weeks and months bonding with their newborn, promoting healthy attachment that sets their child up for a successful future.

[Lola McEvoy (Darlington) (Lab)]

Will the hon. Lady give way?

[Rebecca Smith]

I will keep making progress, if I may. [Interruption.] It is not because I do not want to take the intervention, but because I am on a time limit.

We introduced the biggest expansion of childcare in England’s history—it is heartening to see that Labour has continued our roll-out, despite its criticisms at the time. We backed new legislation to provide additional paid leave to parents whose baby requires neonatal care, allowing them to spend more time with their baby in hospital instead of worrying about returning to work or having to take unpaid leave. We strengthened protections for pregnant women and new parents against redundancy, removing workplace discrimination and improving job security. We introduced shared parental leave for new parents, allowing parents to share up to 50 weeks of leave and up to 37 weeks of pay after the birth or adoption of a child.

However, more needs to be done to encourage uptake of shared parental leave. We know that of fathers who did not take shared parental leave, 45% were not even aware that it existed, according to a 2023 review under the previous Government. Awareness is particularly lacking among smaller businesses: 94% of managers in workplaces with 250 or more employees were aware of the provision; that dropped to 71% in workplaces with fewer than 50 employees.

Importantly, our Government brought statutory adoption leave and pay in line with statutory parental leave, ensuring that adoptive parents had the same rights as birth parents. Adoptive parents also became eligible for paid time off for up to five adoption appointments—something that I personally think is entirely welcome.

[Sarah Russell]

Will the hon. Member give way?

[Rebecca Smith]

I will keep going, because I have quite a lot to say.

Those measures rightly honour the contributions of parents who open their heart and home to children in need of a loving family; 4,500 people claimed statutory adoption pay in 2024-25. In England alone, 2,940 children were waiting for adoption as of September this year, so statutory adoption leave and pay are vital for increasing the number of adoptive parents.

As the hon. Member for Hazel Grove (Lisa Smart) noted, we need to do more to support adoptive parents who are self-employed—that has come up loud and clear this afternoon. Statutory guidance allows local authorities to make discretionary means-tested payments, equivalent to statutory adoption pay. However, as we heard from the hon. Member for York Central (Rachael Maskell), the charity Home for Good discovered that 34% of local authorities have no policy in place for those discretionary payments. Worse still, according to a 2022 survey by the all-party parliamentary group on adoption and permanence, 90% of self-employed adopters are not informed about them by their social worker.

Of course we acknowledge the calls to go further with parental leave, and I am sure that the Minister heard the pleas to include kinship carers in the review. We will scrutinise the Government’s review of parental leave, launched in July this year, to ensure that it strikes an appropriate balance between supporting families and backing businesses. It is worth noting that the UK’s parental leave policies rank comparatively well against countries around the world. The UK offers the fourth longest statutory maternity leave, topped only by Estonia, Croatia and Bulgaria, and it ranks 13th globally for length of statutory paternity leave; 90 countries have no statutory paternity leave at all.

However, there is a fine balance between supporting parents to spend precious time with their child and protecting businesses from burdensome regulations. In our current economic climate, increasing statutory maternity and paternity pay would be counterproductive for businesses —small and medium-sized enterprises especially—at a time when Labour is already saddling them with extra costs. Small business owners are facing enormous pressure: 17,000 high street businesses are expected to close this year alone, and retail businesses in my constituency tell me that they now face a doubling of their business rates. The Government’s Employment Rights Bill as a whole is projected to cost businesses up to £4.5 billion annually and it could increase the number of strikes by 53%. Increased parental pay will be no help at all if people have lost their job. In this context, it is our view that significant increases in statutory maternity and paternity pay are simply unaffordable for businesses or the public sector right now. It is also not clear how the state itself would afford the change. I am sure that the Minister will address that.

We need to protect jobs for the long term. A stable household income is one of the most important factors in ensuring healthy, happy children who will grow into bold and ambitious adults. The Government’s Employment Rights Bill stifles small businesses when they are already gasping for oxygen. It overreaches, snatching choice out of the hands of business owners, who are best placed to balance the interests of their staff members with the viability of their business overall.

When it is practical and affordable, many businesses already offer enhanced maternity and paternity pay in order to retain talent—something that has been stressed this afternoon. A survey of 460 organisations by Brightmine in June 2024 found that 75% of private sector organisations and 97% of public sector organisations already offer enhanced maternity pay. Any changes to statutory maternity and paternity pay must be done after consulting businesses. We must avoid saddling them with yet more unaffordable costs at a time when they are facing immense pressure. Flourishing businesses provide stable income for families, leading to a strong economy and a brighter future for the next generation. The Conservatives’ record demonstrates our support for parents and families, but that must be done sustainably, in a way that backs businesses rather than stifling them.