A better paternity leave package would encourage take-up
Paternity leave rights in the UK currently run to a fortnight that must be taken within 52 weeks of a child's birth — and is paid at the rate of £187.18 a week or 90 per cent of average weekly earnings, whichever is lower.
That is significantly below the national living wage and places a strain on working families. The current system also leads to many fathers and same-sex partners falling through the gaps, with the self-employed, those earning less than £123 per week, or those who have not yet been with their employer long enough being entitled to no paternity leave or pay.
The shared parental leave scheme that was introduced in 2014 aimed to give fathers and other parents the chance to play a more prominent role in the first year. This scheme allows parents to surrender maternity leave and pay, and switch into the shared parental leave regime, so that up to 50 weeks of leave and 37 weeks of pay can be taken flexibly between parents.
However, the uptake has been low. The complexity of the regime (which many employees and employers struggle to understand), the statutory rates of pay, and the fact that it effectively takes time away from the parent on maternity leave, all contribute to a lack of enthusiasm for the scheme.
As a result, many, often larger, employers take it upon themselves to provide enhanced family leave and pay entitlements in a bid to support their staff and provide a more attractive array of benefits. Legal advice is often taken to ensure such policies are fair and non-discriminatory.
A better enhanced statutory paternity regime would certainly improve the position for many families, particularly on lower incomes, and would undoubtedly increase take-up.
While most people would agree with the idea that giving both parents more time with their families is beneficial, the real issue will be to work out how this is funded. Currently employers that qualify for small business relief can recoup the full cost of statutory paternity pay, and other employers can generally recoup 92 per cent of the cost. If paternity leave is extended and pay enhanced, it is unclear how much of the cost would remain funded.
Businesses may well be concerned about the burden of additional cost and the pressures on resourcing that more prolonged absences would cause. Ultimately a balanced approach that considers the needs of families and the financial realities of business will be essential.Nicola Wallbank is a partner at the law firm Freeths
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
STV News
19 minutes ago
- STV News
Scots urged to submit meter readings as energy price cap falls
Scots are being urged to submit meter readings to their supplier as the energy price cap comes into force. Advice Direct Scotland says those with smart meters should act before midnight on June 30 to avoid being overcharged and ensure their device is working properly. Accurate readings prevent suppliers from estimating energy usage and applying higher prices after the deadline at the end of June. The latest change from £1,849 to £1,720 on July 1 represents a 7% drop for consumers, with average annual bills falling by around £122. Advice Direct Scotland says this price is still £582 more than households were paying before the energy crisis began in autumn 2021. Ofgem resets the cap on what suppliers can charge every three months. Anyone unable to submit readings by June 30 should do so as close to the date as possible, and taking a photo of the meter can help resolve any potential disputes. The next price cap update will be announced by Ofgem in August, with forecasts suggesting a further fall in price. Conor Forbes, policy director at Advice Direct Scotland, said: 'Lower gas and electricity prices will come as a relief for households, but bills remain significantly higher than they were before the energy crisis began. 'It's important to submit meter readings before the new price cap comes into force, to prevent being overcharged. 'For extra peace of mind, take a dated photo of the meter. If you have a smart meter, make sure it's working. 'People can also take practical action by examining their bills, finding out how much they are paying, and checking if there are cheaper options available with other suppliers. 'Struggling customers should know they do not have to suffer in silence. Our expert team is on hand for anyone who needs help, no matter their circumstances. 'However, a longer-term solution to the scourge of fuel poverty is a UK-wide social energy tariff, which would automatically put vulnerable people on the cheapest deals.' Advice Direct Scotland says people in Scotland are still struggling with 'record levels of debt', and is encouraging anyone worried about bills to contact its experts for free, impartial advice. Advisers can be contacted at or on freephone 0808 196 8660, Monday to Friday, 9am to 5pm. The charity has been campaigning for a social energy tariff to be introduced across the UK, which would automatically place the most vulnerable customers on the cheapest deals. Eligibility could be based on benefit receipt or low income. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The Independent
24 minutes ago
- The Independent
Starmer seeks to quell revolt to speed through welfare reforms
Prime Minister Sir Keir Starmer looks set to offer concessions to Labour rebels in order to speed his welfare reforms through the Commons. Downing Street insiders said talks were taking place with Labour MPs about the legislation after 126 of them publicly backed a move to block it. The first vote on the Universal Credit and Personal Independence Payment Bill will take place on Tuesday and a concerted effort has been launched by ministers to win round potential rebels. If the legislation clears its first hurdle it will then face a few hours' examination by all MPs – rather than days or weeks in front of a committee tasked with looking at the Bill – with a plan for it to clear the Commons a little over a week later on July 9. Ministers have said they will listen to suggestions to improve the legislation but opposition appears entrenched and the swift timetable for the Bill could add to critics' concerns. Commons Leader Lucy Powell told MPs: 'As the House would expect, the Government actively engages with parliamentary opinion throughout a bill's passage, as we are doing intensively with the Universal Credit and Personal Independent Payment Bill.' A No 10 source said: 'Delivering fundamental change is not easy, and we all want to get it right, so of course we're talking to colleagues about the Bill and the changes it will bring, we want to start delivering this together on Tuesday.' Overnight six more Labour MPs added their names to the rebel amendment that would halt the legislation in its tracks. The reasoned amendment argues that disabled people have not been properly consulted and further scrutiny of the changes is needed. The new signatories include the Commons Environmental Audit Select Committee chairman Toby Perkins, Stoke-on-Trent Central MP Gareth Snell, Newcastle upon Tyne MP Mary Glindon and Tamworth MP Sarah Edwards. North Ayrshire and Arran MP Irene Campbell and Colchester MP Pam Cox, both of whom won their seats in the party's 2024 landslide election victory, have also added their names. The new names take the total number of Labour backbenchers supporting the amendment, tabled by Treasury Select Committee chairwoman Dame Meg Hillier, to 126 out of a total of 162 backers from all parties. The plans restrict eligibility for the personal independence payment (Pip), the main disability payment in England, and limit the sickness-related element of universal credit. The Government hopes the changes will get more people back into work and save up to £5 billion a year. Existing claimants will be given a 13-week phase-out period of financial support, a move seen as a bid to head off opposition by aiming to soften the impact of the changes. But the fact so many Labour MPs are prepared to put their names to the 'reasoned amendment' calling for a change of course shows how entrenched the opposition remains. One backbencher preparing to vote against the Bill told the PA news agency: 'A lot of people have been saying they're upset about this for months. 'To leave it until a few days before the vote, it's not a very good way of running the country. 'It's not very grown-up.' They said that minor concessions would not be enough, warning: 'I don't think you can tinker with this. They need to go back to the drawing board.' The Daily Telegraph reported that potential concessions being considered include a commitment to speed up payment of support to help people back into work and offering assurances that reviews of policies in this area will be published. Meanwhile, The Times reported some MPs opposed to the plans had blamed Sir Keir's chief of staff Morgan McSweeney and suggested the time had come for 'regime change' in Downing Street. Asked about attacks on Mr McSweeney, trade minister Douglas Alexander said: 'I'm much less interested in the gossip about SW1 than whether this legislation works on the streets, in the towns, in the communities right across the country.' He told Sky News it was 'for the Prime Minister to make his judgments' about who works in Downing Street but 'the fact is that team delivered us an historic victory only last July, against expectations'. He told ITV's Good Morning Britain: 'If there are practical ways that we can improve this legislation, we should. 'We should do it not to buy off rebels, but because it's a Labour thing to do and that's the conversation that I expect ministers will be engaged in in the coming days.' Analysis by the Institute for Fiscal Studies (IFS) think tank indicated overall, 800,000 fewer working-age people are expected to receive a Pip daily living award in 2029–30 as a result of the reforms. The tighter criteria are set to lead to 430,000 new applicants – who would have received an award without reforms – receiving no award, and 370,000 existing claimants losing out following reassessment. Most of the 800,000 losers will receive £3,850 per year less in Pip. The 2.2 million existing claimants of the health element of universal credit who are expected to still be claiming in 2029–30 are estimated to see a £450 real decline in their support in that year because of the freezing of the payment. There are also set to be 700,000 new claimants who will typically receive £2,700 a year less than they would have done under the current system, the IFS said. It will be well into the 2030s before the reforms are fully rolled out and, in the long-term, the savings could amount to around £11 billion a year, the IFS said. A little over a quarter of the public are supportive of the proposed reforms, according to polling published on Thursday. Of 2,004 people surveyed by More in Common over the weekend, just 27% said they supported the planned changes to the benefits system and half (51%) said they believe the cuts would worsen the health of disabled people. A similar proportion (52%) said the cuts would increase pressure on the NHS while six in 10 said the Government should look at alternative cost-saving measures instead. Liberal Democrat leader Sir Ed Davey said the Government should pull the Bill and 'go back to the drawing board' instead of 'cutting vital support from thousands of vulnerable people'.
The Guardian
25 minutes ago
- The Guardian
No 10 in talks with Labour MPs in attempt to quash growing welfare revolt
Downing Street is in talks with a growing band of Labour rebels in an attempt to quash a major revolt over the government's planned welfare changes. The trade minister Douglas Alexander said on Thursday that the government was 'listening and talking and reflecting' on the rebels' criticisms of the welfare proposals, with more than 120 MPs poised to rebel against the government in next Tuesday's vote. The Guardian reported overnight that No 10 was preparing to offer concessions to Labour MPs that could include changes to the points needed to be eligible for personal independence payments (Pip), a benefit paid to those both in and out of work. Alexander said Labour MPs were in agreement 'with the principles of the bill' but were speaking with ministers about how changes would be put in place and how best to protect the most vulnerable. Disgruntled Labour MPs have told ministers they believe people were properly consulted and further scrutiny of the change is needed. 'When 120 Labour colleagues in the House of Commons are making clear through a reasoned amendment that they agree with the principles of the bill, but they've got real concerns in terms of how those principles are given expression in practical application, the government should be listening and talking and reflecting, and that's exactly what I anticipate Labour ministers will be doing,' he told ITV's Good Morning Britain. The minister said there was still enough time for discussions with potential rebels before Tuesday, telling Sky News: 'We've got time. There'll be discussions that will be happening. There's discussions that have started happening, and I expect that those conversations will continue.' He added: 'If there are practical ways that we can improve this legislation, we should. We should do it not to buy off rebels, but because it's a Labour thing to do and that's the conversation that I expect ministers will be engaged in in the coming days.' Pip was introduced by the coalition government in 2013 and is designed to help working-age people 16 and over with the extra costs of living with a health condition or a disability. It is available in England, Wales and Northern Ireland. The prime minister's chief of staff, Morgan McSweeney, has been having one-on-one talks with senior rebels in recent days, but Labour whips admitted privately they were having no success convincing MPs to withdraw their names from an amendment that would in effect kill the welfare bill. Attempts to persuade dissenting MPs to remove their names from the amendment – tabled by the Treasury select committee chair, Dame Meg Hillier – have so far proved futile. New signatories overnight included the Commons environmental audit select committee chair, Toby Perkins, the Stoke-on-Trent Central MP, Gareth Snell, the Newcastle upon Tyne MP Mary Glindon and the Tamworth MP Sarah Edwards. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion The North Ayrshire and Arran MP, Irene Campbell, and the Colchester MP, Pam Cox, have also added their names, bringing the total number of Labour backbenchers supporting the amendment to 126. The prime minister appeared to bat away the threat of a major rebellion on Wednesday, when responding to a question about whether he had the political skill to lead Britain, while taking questions at the Nato summit in The Hague. 'Is it tough going? Are there plenty of noises off? There always are, there always have been, there always will be,' Starmer said. 'I'm comfortable with reading the room and delivering the change the country needs.' He insisted his party remained 'pretty united' behind the need for change. The government had argued its changes were necessary 'to confront the broken welfare system … which is no longer a safety net for those that need support', noting that one in 10 working-age people in Britain now claimed at least one type of health or disability benefit, while the number of people claiming health related benefits with no requirement to work had increased by 45% since 2019-20. Analysis by the Institute for Fiscal Studies (IFS) thinktank predicted that 800,000 fewer working-age people would receive a Pip daily living award in 2029-30 if the changes went ahead. Even if fully implemented, official forecasts have still suggested the number of working-age claimants of Pip or its predecessor in England and Wales would rise from 3.1 million in 2024-25 to 3.9 million in 2029-30.
