Government to Overhaul Parental Leave and Pay in Landmark Review

Ministers have launched a wide-ranging review of the UK’s parental leave and pay system, aiming to simplify existing policies and better reflect the needs of modern families.

The review will assess all current entitlements, including maternity, paternity, adoption, shared parental leave, neonatal care leave, bereavement leave, and unpaid parental leave.

At present, mothers can take up to 52 weeks of maternity leave—only the first six weeks are paid at 90% of average earnings, followed by 33 weeks at a statutory rate (£187.18 per week). Fathers are currently entitled to just two weeks’ paternity leave at the same statutory rate. Take-up remains low, with only one in three eligible fathers using it, largely due to financial concerns.

The Government is now exploring the introduction of day-one rights for both paternity and unpaid parental leave, as well as reforms to make shared parental leave more accessible. Ministers emphasised that the proposed changes would not impose additional burdens on businesses.

Deputy Prime Minister Angela Rayner said the system must be “fit for the 21st century”. At the same time, Business Secretary Jonathan Reynolds described the initiative as a chance to “reset” employment rights to support both working parents and employers.

The review will gather input from families, employers, and experts, with a final set of proposals expected by late summer 2025. Key goals include narrowing the gender pay gap, promoting equal parenting, and strengthening early family support.

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