Thank you for contacting me about maternity and paternity leave.
As set out in the Social Security Act 1992, the Secretary of State for Work and Pensions is required to undertake an annual review of the level of benefit payments, including those for Statutory Maternity Pay. During this review, the Secretary of State is to consider whether benefit payments have retained their value in relation to the general level of prices.
I welcomed that from April 2024, all working-age benefits, including Statutory Maternity Pay, were uprated in line with September 2023 Consumer Price Index Inflation – 6.7 per cent - by the previous Government. I hope that the current Government takes a similar approach and makes sure that Statutory Maternity Pay continues to hold its value for expectant mothers.
I am also proud of the fact the previous Government introduced Shared Parental Leave in 2014, which enables working parents to share up to 50 weeks of leave and up to 37 weeks of pay when the mother does not intend to use her full maternity leave.
Moreover, Paternity Leave adds up to two weeks on Paternity Pay paid at the flat rate of £184.03 or 90 per cent of average weekly earnings, whichever is lower. Whilst this does not sound like a considerable sum, this statutory requirement often provides families with the flexibility they need to spend time with their newborn baby in the first few weeks of its life.
It is important we consider the pressures facing businesses when introducing new regulations. The Government's Employment Rights Bill as a whole is projected to cost businesses up to £4.5 billion annually and could increase the number of strikes by 53 per cent. Not withstanding the cost of dysfunctionality and higher prices we will all have to pay as a result. Within this context, it is difficult to see how bold changes in statutory maternity and paternity leave would be affordable for businesses at the moment.
In recent years we have built a better system of parental leave than had been in place previously. It is important when considering any further changes or improvements to make sure this is achieved at a time when businesses will not be overburdened.
Thank you again for taking the time to contact me.
