Increase in Shared Parental Leave Following Childbirth

The number of parents availing shared parental leave pay surged to 24,700 last year—exceeding expectations set by Whitehall since the right’s inception in 2015.

Initial estimates by officials suggested that 2 to 8 percent of the 285,000 new working fathers annually might adopt the shared parental leave with their partners. The initiative, launched by the coalition government, aims to give parents more flexibility in childcare, encourage paternal involvement, and challenge the stereotype of mothers being the primary caregivers.

In its debut year, only 6,200 parents of children born after April 2, 2015, utilized shared leave. This number has now grown annually, reaching 24,700 by 2023, as per data from HM Revenue and Customs obtained by the law firm Eversheds Sutherland.

The modest uptake has sparked criticism from HR and employment law experts, citing issues like the scheme’s complexity, insufficient financial support—statutory leave pay is less than half the national living wage—and general unawareness.

The Labour government has promised to reform the scheme, making it accessible from an employee’s first day rather than after 26 weeks, with the goal of better supporting working families. A new employment rights bill is anticipated by mid-October, with the government seeking employer input.

Suzanne Caveney, an employment partner at Eversheds Sutherland, urged the government to learn from countries like Sweden and Finland, advocating for a paid ‘family leave’ right for both parents.

“In those countries, uptake is significantly higher, which is no coincidence,” she said. “Tinkering with the current system won’t suffice; the low participation suggests a need for revolutionary changes to genuinely support working families.”

Suzanne Caveney, a partner at Eversheds Sutherland, said employers need to embrace the shared parental leave scheme

Labour’s move to guarantee shared parental leave, along with maternity and paternity leave, from day one contrasts with the coalition’s 2013 stance, which included a 26-week service condition for employer certainty.

A review by the Department for Business and Trade last year indicated that most scheme users were in public administration, health or education, or business and professional services, typically holding middle management or senior roles.

Caveney commented on the growing cultural acceptance of shared parenting and more flexible workplace policies, suggesting these factors, combined with enhanced pay, are driving scheme utilization.

“The new government’s introduction of the policy as a day-one right is a step forward, but widespread adoption requires employers to embrace and encourage it positively,” she noted. “The trend shows white-collar professional services leading, likely due to the higher costs of implementation.”

A key criticism of the scheme’s original design is its complexity, involving specific notice periods and requiring mothers to waive part of their maternity leave for fathers, often needing agreement from two employers.

While many employers enhance maternity leave pay, fewer extend similar benefits to shared parental leave. The DBT study found parents on shared leave received full salaries for an average of 5.7 weeks, only about a third of their leave period.

Carlos Pires, a principal associate at Eversheds Sutherland, utilized shared leave twice for four months each after the birth of his two children.

“My wife and I had to decide how much leave she would relinquish for me to take shared parental leave,” he shared. “It’s a challenging decision.”

“Culturally, the shift from traditional maternity leave to shared parental leave is gradual and incomplete,” he added. “Enhanced payment policy at Eversheds made it possible for me; otherwise, it wouldn’t have been feasible.”

The government has vowed to review the entire parental leave and pay system within its first year.

A DBT spokesperson stated, “The government is committed to overhauling workers’ rights and making work pay. A new employment rights bill will be introduced within 100 days, providing more protections, reviewing parental leave to support working families, and improving living standards, boosting economic growth and working conditions.”

Post Comment