Budget Resolutions

Shaun Davies Excerpts

Wednesday 6th November 2024 Commons Chamber

[Shaun Davies (Telford) (Lab)]

This first Budget is about cleaning up the mess of the last 14 years—five Prime Ministers and seven Chancellors—and repairing Britain’s foundations. It is about investing in Britain and backing it to succeed, and ensuring that when we need public services, they are there for us. It is an important first step. But my goodness, the Conservative party have made an incredible mess.

During the general election campaign, my team and I spoke to thousands of people across Telford. Every conversation was about decay—our crumbling NHS, the struggles of our education system and the breaking of our council services, the fact that we do not see enough police officers on our streets, high streets in need of support, a SEND system that is letting children down, roads and transport systems that do not work for working people—I could go on. There was a real sense that the Government had given up on governing and made many people believe that there was no hope, and that decline and doom, chaos and corruption was the norm.

This first Budget is a watershed moment. It marks the return to a state that cares about making sure people can get the medical treatment they need when they need it, that they feel safe on our local streets and that they can afford housing. The contrast between the hope that this Budget offers and the bleak future I described under the Conservatives is striking.

I am particularly pleased that this Budget has delivered a real-terms funding increase of more than 3% for local government next year. Before I came to this place, I was a council leader and the chair of the cross-party Local Government Association—I declare an interest on the basis that I am now the honorary vice-president of that organisation. Every councillor, regardless of political persuasion, will talk about the last 14 years, with councils of all political stripes going bankrupt almost every single year. The LGA has called this Budget

“a step in the right direction”,

but after 14 years of stumbling in the wrong direction, it is just the start of a long journey back. That journey must start with the reforms of local government. The Government recognise the urgent need to give local government leaders more skin in the game, and I look forward to seeing more reforms in that regard.

Like other hon. Members, I welcome the fact that the national living wage is increasing, which will impact 4,000 people in my constituency. This Budget is pro-growth, pro-business, pro-worker, pro-family, pro-public sector, and it is giving people a Britain they can be proud of.

Paternity Leave and Pay

Shaun Davies Excerpts

Wednesday 23rd October 2024 Westminster Hall

[Shaun Davies (Telford) (Lab)]

I beg to move,

That this House has considered paternity leave and pay.

It is a pleasure to serve under your chairmanship, Mr Pritchard. My first Westminster Hall debate is being chaired by a neighbouring Member of Parliament. It is a delight to be here.

I know that families come in all shapes and sizes and that paternity leave is not just about fathers. I will refer primarily to dads in my speech, but the points that I will be making relate and apply to all families, of all shapes and sizes. I stand here as a dad, a parent, and an MP who believes that parenthood matters to children, families, employers, the economy and our country.

The UK currently has the worst paternity pay and leave in Europe and among the worst in the OECD. Fathers, if they are eligible—about 20% of them are not—can take a maximum of two weeks’ paid leave, at a maximum rate of £184 a week, which is less than half the national living wage. In 2023, 605,000 babies were born in the UK, yet only 195,000 dads received statutory paternity pay. That is less than one father for every three children. If we contrast that with the 52 weeks of maternity leave and 39 weeks of maternity pay, it is clear that our system needs to be updated for the 21st century.

As a father myself, I do have a vested interest in this issue, but better paternity rights are not just good for fathers; they are good for mums and, more importantly, for children. Last week I was able to speak to a number of parents at an event in Parliament with the Dad Shift campaign, and I heard from several dads about the difference that paternity leave—or the lack of it—had made to their relationships with their young children. I want to live in a society in which children can see both parents as caregivers, but for that to happen, it needs to be possible for both parents to be present during the vital early years. Evidence shows that the physical and social bonds that are set so early are critical for babies as they grow up and for the fathers’ connection to the children in later life. One dad I heard from at the event in Parliament, Simon, suffered from undiagnosed depression after the birth of his child. That was made worse by not having the time with his child to establish and develop that bond.

This is not the 1950s. We can all agree that most men do want to have relationships with their children, especially during the early years, but the law does not reflect that. Another dad I spoke to, George, had a generous employer who gave him more than the statutory pay and leave, and he spoke glowingly about the difference that that had made to his mental health and wellbeing, but also, of course, the balance in the household and his relationship with his child. It was great to hear that a number of employers were going above and beyond the statutory minimum, but as of 2022, 49% of employers provided the minimum statutory paternity leave.

This matter is simply too important to leave to the whim of individual employers. Change needs to start within Government and the public sector. I recently tabled a number of written questions to Departments, asking how much paternity leave their staff took on average. The only Department whose staff took more than the 14 days was the Department for Education. If we look at other Departments, the figure was 9.6 days in the Department for Transport and 7.25 days in the Department for Work and Pensions. The Cabinet Office ranked worst, with 5.7 days. The Government and the public sector should be exemplary employers, but instead they are lagging behind some private sector employers. We need as the first step a signal from the Government and from the public sector as a whole that this is something that needs to be improved.

At the Dad Shift event, I heard from mums and dads about the toll that the segregated system had taken on their careers. Making it easier for dads to look after the kids also makes it easier for mums to continue in their workplace—a point that my hon. Friend the Member for Walthamstow (Ms Creasy) has made so passionately in the Chamber only this week.

It is morally wrong to pressure women into sacrificing their career for their family, and it is also a massive productivity drain. This Government want to restore growth, create jobs and create wealth. The Centre for Progressive Policy estimates that closing the gender employment gap in all UK local authorities could increase economic output by a staggering £23 billion, and the OECD estimates that three quarters of the gender wage gap in northern and western Europe is down to the motherhood penalty.

How many talented women are we losing from the workforce because they cannot get back into work after lengthy maternity leave? How much better off could we be if both parents could take leave that was short enough not to harm their careers but long enough to support their children? Technically, that is already an option after the changes that took place in 2015 with shared parental rights. However, the Government’s own analysis found that only 1% of eligible mothers and only 5% of eligible fathers took shared parental leave. I heard from one father, Alex, who told me that the system and process of shared parental leave were so complicated to navigate that he paid a third party £50 to complete the forms for him.

Things are about to get better. I am delighted that the Employment Rights Bill had its Second Reading earlier this week; it will mark a massive step forward on paternity leave and pay, expanding eligibility by introducing day one rights to paternity and parental leave, allowing fathers to take paternity leave after they have taken shared parental leave, and facilitating a full review of all parental leave rights. The Government clearly recognise the importance of the issue and that further steps need to be taken to address it.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

My hon. Friend is making an excellent speech on an issue that is clearly important to so many of us. Does he agree that even if the birth of a child has been straightforward and simple, two weeks, and the paternity pay that goes with it, passes very quickly? If there is a complication in the birth—if the mother becomes ill, for example, or if there are other complications for the child—the two weeks disappear in the blink of an eye. Then parents, especially fathers, go back to work, and fathers feel guilty about not being able to be at home to support that type of need.

--- Later in debate ---

[Shaun Davies]

My hon. Friend makes a powerful contribution. My own brother was born three months premature and my father’s ability to be there was curtailed by the fact that the paternity leave then was simply not generous enough.

The Employment Rights Bill, which I welcome, goes some way towards addressing the eligibility problem, but there is more that we can do. Research by the Centre for Progressive Policy, Women in Data and Pregnant Then Screwed found that countries with longer paternity leave have lower gender wage gaps and lower gender workforce participation gaps than countries such as our own.

Such leave not only needs to be longer; it also needs to be better paid. In line with statutory paternity pay, there should be 90% of earnings for the following six weeks. It needs to be “use it or lose it” leave—in other words, non-transferrable—to encourage take-up. Fundamentally, the root problem is the assumption that there must always be one primary parent. That scenario will suit some families, but it benefits no one to force that choice on everyone. The campaign for fair parental leave and pay is a campaign to normalise co-parenting.

I am making a number of asks of the Minister. I acknowledge his work on the updating of employment rights across the country; he should be congratulated for that. However, we are able to go further and we must not let the good be the enemy of the great. We must applaud the progress that has been made and affirm that we can go further. I ask him to ask his Department to review the rights around parental leave, so that we can have a conversation about it.

This is the moment for our generation of MPs to drag working practices into the 21st century, for the benefit of dads, mums, society and our country, but most of all for the benefit of our children as they grow up. Let us give British children their dads back. Let us be pro-growth, pro-worker, pro-business, pro-children and—importantly—pro-family.

--- Later in debate ---

[Shaun Davies]

It has been a fascinating debate, as the Minister says. Most parts of the United Kingdom were covered, and I could say that there is cross-party progressive alliance on the issue. I hope that the Minister has noted that there is a significant amount of support for paternity leave and pay. There is an appetite from people like myself and my hon. Friend the Member for Makerfield (Josh Simons) to use the Employment Rights Bill as the vehicle for this progressive change, but if that does not happen, engaging with the review of the parental leave system would be most helpful. The statutory minimum is the statutory minimum, and the Government and the public sector should see it as an opportunity lead the country in what fathers should expect in a workplace. I hope that colleagues from the Cabinet Office will take note.

[Graeme Downie (Dunfermline and Dollar) (Lab)]

I thank my hon. Friend for giving way. I will be very brief. I am a former small business owner—does my hon. Friend agree that as part of that review, we should also be looking at and promoting to small businesses the benefits of adequate family leave and flexible working at the same time to help grow the economy?

[Shaun Davies]

I absolutely agree with my hon. Friend’s point on small businesses. It is interesting that since this debate was secured, a number of employers have come forward to talk about the steps they are taking and their appetite for taking further steps—they see it as an opportunity to address recruitment and retention issues, too.

I look forward to working with the Minister and thank him for his contribution. I know that there will be further such conversations over the course of this Parliament.

[Mark Pritchard (in the Chair)]

I thank all right hon. and hon. Members for being very helpful. It was very difficult for you to speak for just one minute, and pretty much everybody did. I congratulate you, and I congratulate the hon. Member for Dunfermline and Dollar (Graeme Downie), who I sadly was not able to call, but who seized his opportunity to speak by intervening on the mover of the motion in the last minute. I also congratulate my friend and neighbour, the hon. Member for Telford (Shaun Davies), on his first Westminster Hall debate, which I am sure will be the first of many over the coming years.

Question put and agreed to.

Resolved,

That this House has considered paternity leave and pay.