UK has one of ‘worst statutory leave offers for fathers in developed world'
The committee has urged the Government to either amend the Employment Rights Bill to legislate for a day one right to paid leave or commit to 'considering this vital change within its review' in consultation with employers.
It has also called on the Government to consider raising paternity pay to the level of maternity pay in the first six weeks – 90% of average earnings.
The paternity and shared parental leave report by the committee said working parents 'will be let down by a review that leads only to tinkering around the edges of the system'.
Chairwoman of the Women and Equalities Committee Sarah Owen said the UK's parental leave system was in 'urgent need of an overhaul to fit with the reality of working parents' lives'.
The Labour MP for Luton North said reform 'must start with longer and better paid paternity leave'.
Ms Owen said: 'It's essential the Government's proposed review addresses the system's fundamental failings, including low statutory pay, inadequate leave periods for fathers and others, exclusion of many working parents and guardians, plus design flaws and unnecessary complexity in the Shared Parental Leave scheme.
'The UK's parental leave system has fallen far behind most comparable countries, and we now have one of the worst statutory leave offers for fathers and other parents in the developed world.'
The Labour MP added: 'Ministers must commit to meaningful reforms in the medium-term, with a view to going further towards a more gender equal parental leave system.
'Tinkering around the edges of a broken system will let down working parents. While much-needed substantial change to our paid parental leave system will require considerable financial investment, this would be outweighed by wider societal and economic benefits.'
The report states that the UK's rate of statutory parental pay is 'completely out of kilter with the cost of living, has not kept pace with inflation and is far below rates in most comparable countries'.
It recommends phased introduction of increases to statutory pay across the system to bring rates for all working parents up to 80% or more of average earnings or the real Living Wage.
The lack of provision for self-employed fathers is 'deeply unfair', the report adds.
The committee recommends that the Government consider options for providing statutory paid leave for all self-employed working fathers as part of its review of the parental leave system, including introducing a paternity allowance for self-employed fathers and other parents, similar to maternity allowance.
The report states that the shared parental leave system is 'extremely difficult for most parents and their employers to understand'.
It said a forthcoming review must examine the function and necessity of eligibility rules, with a view to 'simplifying or removing the employment status, time in service and earnings criteria'.
The committee said the review should examine approaches taken in overseas systems, including the German 'partnership bonus' and Portugal's 'sharing bonus', which provide additional paid leave to couples in which both parents take a substantial portion of leave while the other returns to paid work.
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