Statutory Maternity and Paternity Pay

Scott Arthur Excerpts

Monday 27th October 2025 Westminster Hall

[Dr Scott Arthur (Edinburgh South West) (Lab)]

I thank my hon. Friend the Member for Burton and Uttoxeter (Jacob Collier) for introducing this debate. Being a parent is the hardest job in the world, and I believe that the state has a duty to make it easier. With just 90 seconds, I want to focus on just one case study.

Blanche is a fantastic mum who lives in Edinburgh South West. She is self-employed, and she found herself in an even more precarious position when she had a child. As she works for herself, she was entitled to only a statutory allowance: a flat £187 per week with no six-week cushion, unlike the statutory maternity pay situation. As a result, she had to work right up until the morning she went into labour at 41 weeks, and she returned to work almost instantly after using up her “keeping in touch” days. To quote her directly, and I warn Members that this is a bit graphic,

“it was a shock to the system, her body was sore, her breasts were leaking, she was still bleeding”.

She had to do work in that condition. She highlights that alongside the physical and logistical difficulties, she felt stigmatised by medical staff and other parents who judged her for leaving her child to return to work so early, without understanding that her financial situation forced her to do so.

I spoke to Blanche at the weekend. She does plan to have another child—she is a fantastic mum, and I am sure that we all wish her well—but she hopes that by then, Minister, things will have changed. I know that we cannot do this overnight, but I hope that the Minister can signal the start of a transition.

--- Later in debate ---

[Sarah Olney (Richmond Park) (LD)]

It is a real pleasure to serve under your chairmanship for the first time, Mrs Hobhouse. I thank the hon. Member for Burton and Uttoxeter (Jacob Collier) and the Petitions Committee for this debate. As a survivor of three maternity leaves—all on statutory pay—a c-section and a spell in the neonatal unit, all the topics that have been raised are very close to my heart. I thank each and every hon. Member for their contributions and for representing their constituents so well.

This summer, the Government announced that they would undertake a parental leave and pay review, expecting it to conclude in 18 months’ time. The Liberal Democrats welcome the Government’s commitment to that much-needed review of parental leave. Every child deserves the best possible start in life and the opportunity to flourish, no matter their background or personal circumstances. Too often, parents struggle on inadequate parental pay and without good enough access to shared leave. Childcare costs are eyewatering, and balance between family life and work has only become harder and harder to achieve. Not only is that unfair on families, but it weighs down our economy.

The Liberal Democrats have called for an overhaul of the parental leave system to give parents a genuine choice over how to manage their affairs in the first months of their child’s life. The Liberal Democrats were proud to introduce shared parental leave when in government. Years later, however, millions of parents are still being denied the choice to spend more time at home, with about a quarter of fathers ineligible for paternity pay.

Meanwhile, the Government are introducing wide-ranging changes to employment law through the Employment Rights Bill. The Bill will introduce a suite of new protections and entitlements for working families, including enhanced rights on leave, protection from dismissal and bereavement support. Eligibility for paternity leave and unpaid parental leave requires employees to have a minimum length of service in order to qualify, but from April 2026 the qualifying service requirements will be removed. That means that paternity leave and unpaid parental leave will become entitlements from the first day of employment, as the Liberal Democrats called for in our 2024 general election manifesto.

[Dr Arthur]

The Lib Dems may well have called for that in their manifesto, but when it came to a vote, they abstained on that very right for mothers. Does the hon. Lady now regret that?

[Sarah Olney]

I thank the hon. Gentleman for his intervention. The Liberal Democrats support measures that work to strengthen employment rights. We welcome aspects of the Employment Rights Bill, such as boosting statutory sick pay, strengthening support for whistleblowers and increasing support for carers, all of which move us in the right direction. However, we remain concerned about the specific way in which many of the measures are to be implemented. We must ensure that the legislation strikes the right balance for employees and for business, particularly small and medium-sized enterprises.

I have spoken with businesses in my constituency that tell me that they are being left in limbo by the vague framing of the Bill, which leaves crucial detail to secondary legislation and Government reviews. That prevents long-term planning, and I am disappointed that the Government did not support the Liberal Democrat amendments, which would have created more certainty for businesses.

New measures to support workers must go hand in hand with much-needed reforms to support our small businesses and bring down their costs. We know that the Government inherited a mess. We know that the cause of the mess is the legacy of reckless economic mismanagement by the previous Government, whose record is a dispiriting picture of low growth, high interest rates and a record fall in living standards. But it is disappointing that the current Government have taken decisions that have compounded many of the challenges for communities, businesses and families, while presiding over very tight public finances and a stagnant economy.

That is why we urge the Government to put in place a range of measures that will bring down business costs, unleash the power of our SMEs and power economic growth—measures such as scrapping the unfair national insurance rise, fixing the broken business rates system, bringing down the cost of energy by decoupling electricity and gas prices, and finally repairing the economic damage caused by the previous Government’s shambolic Brexit deal by cutting red tape and negotiating a new bespoke UK-EU customs union. Those actions could breathe new life into our economy and our small businesses and would go a long way towards facilitating improvements to parental leave and pay.

In our 2024 general election manifesto, we called for statutory maternity and shared parental pay to rise to £350 a week, for paternity pay to increase to 90% of earnings with a cap for high earners, and for the introduction of an extra “use it or lose it” month for fathers and partners, paid at 90% of earnings, again with a cap for high earners. Those policies would benefit not only families, but businesses and the economy, by encouraging workforce participation and making it easier for people to advance their career while starting a family.

We hope that the Government will look closely at those proposals, while introducing a robust plan to cut business costs, boost growth and empower our SMEs. More broadly, I urge them to look into the prevalent inequality in caring responsibility. What steps are they taking to support millions of family and kinship carers who have no paid leave at all? Will they commission a similar review into provision for unpaid carers and make carer’s leave paid?