Six Weeks of Paid Paternity Leave Could Add £2.68bn to UK Economy, Report Says

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Introducing six weeks of paternity leave paid at 90% of earnings could deliver a net economic benefit of £2.68 billion a year for the UK while potentially helping reduce relationship breakdown after the birth of a child, according to a new review of international research.

The report, published on September 9 by King’s Global Institute for Women’s Leadership and Equimundo: Center for Masculinities and Social Justice, examined findings from 33 studies covering countries including Sweden, Norway, Denmark, Iceland, Germany, France, Spain, Canada, the UK and the US.

Researchers recommend six weeks of leave reserved specifically for fathers or second parents, with the entitlement lost if it is not used. They argue that the leave should be paid at 90% of normal earnings and should not be transferred from a mother’s maternity entitlement.

The proposed system would also cover self-employed workers and people on fixed-term, temporary or zero-hours contracts. The researchers said employer guidance, support for smaller businesses, accessible childcare and flexible working arrangements would also be important.

Under the current UK system, fathers are entitled to two weeks of statutory paternity leave, paid at £194.32 a week or less. Shared Parental Leave allows mothers to transfer some maternity leave to their partners, but only around 4% of eligible fathers use the scheme.

The report argues that low pay is a major reason fathers do not take longer periods away from work. Evidence from other countries suggests that well-paid, reserved leave encourages fathers to spend more time caring for children and can support mothers’ participation in employment.

Research from Quebec found that the introduction of five weeks of father-only leave at about 70% of earnings increased fathers’ leave uptake from 21.3% to roughly 74.3%. Mothers also became more likely to participate in the labour market and work full time.

Studies from Germany and Denmark similarly found that reserved parental leave can change the division of childcare and reduce differences between men’s and women’s earnings.

The review also examined family stability. Research from Iceland found that a 2001 reform reserving one month of leave for fathers was associated with lower rates of parental separation years after a child’s birth. However, evidence was not consistent across all countries, with some studies finding little effect and others recording higher separation among certain traditional households.

The economic case for reform is also based on increased employment among mothers. Separate modelling cited by the researchers estimated that six weeks of leave at 90% pay could increase economic output by £5.5 billion through higher maternal employment, partly offset by reduced output as fathers take leave.

Professor Heejung Chung, one of the report’s authors, said fathers need leave that they can afford to take if the UK is to achieve greater equality in childcare and employment.

The report argues that a longer, properly paid entitlement could benefit families, employers and the wider economy by encouraging fathers to take a more active role in early childcare while helping mothers remain connected to paid work.

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