Parental Pay: Living Wage

(asked on 16th June 2025) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what long-term plans her Department has to increase levels of (a) maternity, (b) paternity and (c) parental pay in line with the National Living Wage.


Answered by
Andrew Western Portrait
Andrew Western
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 24th June 2025

Government spends approximately £3 billion a year on parental payments. When considering calls to increase the level of maternity benefits generally, those must be balanced against limited resources as well as being mindful of the burden on employers, the needs of parents and could not be made without consultation with businesses and other stakeholders. Further, any changes would need to take account of economic circumstances and affordability for taxpayers.

The Secretary of State for Work and Pensions is required by law to undertake an annual review of benefits and State Pensions, including Statutory Maternity Pay and Maternity Allowance. This is based on a review of trends in prices and earnings growth in the preceding year.

From April 2025, the rate for Statutory Maternity Pay and Maternity Allowance increased by September 2024's CPI figure of 1.7%, from £184.03 to £187.18 per week.

Maternity and other types of Parental Pay are intended to provide a measure of financial security to support parents whilst they are away from the workplace; they are not a replacement of earnings.

We know that the parental leave system needs improvement. In the Plan to Make Work Pay the government committed to a Review of the parental leave system to ensure that it best supports working families. Planning work is already underway across Government.

The review provides us with an opportunity to consider the current framework of parental leave entitlements and how they should operate as a holistic system to improve the support available for working families.

We will also take the opportunity to establish a set of objectives for the parental leave system, which reflect the needs of GB’s modern economy. This has been lacking in recent years as the framework of entitlements has evolved over time.

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