On 1 July 2025 the government announced a landmark review into parental leave and pay entitlements. This article examines what may have triggered the review, what the present law is, and what changes we may see in the future.
The right to maternity leave was established via the Employment Protection Act 1975, however, this was only available for some working women. Since then, the law has extended in an attempt to provide rights to fathers, adopters and parents in other more specific situations.
However, this has created a complicated framework of legislation – as the changes have only been implemented as the needs of specific groups have emerged. Family life and culture has also changed significantly since the 1970s, with more families having both parents working full time and more fathers involved in childcare and daily parenting tasks.
As such, a review and call for evidence have been announced, with a view to reform the current legislation into a system which is more reflective of modern society.
The following gives a very brief overview of the entitlements afforded to parents under the current legislation (figures are correct as of the 2025/26 financial year):
Maternity leave and pay
Maternity leave is an entitlement to 52 weeks of leave which is afforded to eligible mothers. Maternity pay may either be Statutory Maternity Pay, 90% of average weekly earnings for 6 weeks then £187.18 for 39 weeks, or Maternity Allowance which ranges between £27 to £187.18 for 39 weeks.
Adoption leave and pay
Adoption leave is available to the eligible adoptive parent, who is treated as the primary adopter, and also affords an entitlement of up to 52 weeks upon the placement of a child. Statutory Adoption Pay is paid at the same rate as Statutory Maternity Pay.
Paternity leave and pay
Introduced in 2003, paternity leave is an entitlement to two weeks of leave within the first 52 weeks of the child’s birth or placement for adoption - this is also remunerated at £187.18 per week. Paternity leave is not presently a right from the first day of employment.
Shared Parental leave (2014)
Introduced in 2014, eligible parents can share up to 50 weeks of leave and up to 37 weeks of pay during the first year of a child’s life or placement for adoption. The shared parental pay is £187.18.
Other parental leave entitlements
Some employers may choose to offer employees enhanced parental leave and pay. However, there is no mandatory requirement for them to offer anything above the statutory minimum.
The average UK salary is estimated to be around £37,000. However, a woman on Statutory Maternity Pay would only receive £11,142 for the same period. For families dependent on two incomes, having a child is becoming less financially viable. Rachel Grocott, the CEO of Pregnant then Screwed has highlighted that, ‘After 6 weeks mothers are forced to survive maternity leave on 44% less than the National Minimum Wage, and dads are forced to suck up the same benefits for their 2 weeks.’
According to the 2019 Parental Rights Survey, 35% of fathers who did not take statutory leave said that this was because they could not afford to. It should be noted that this survey was conducted prior to the Covid-19 pandemic, and subsequent cost of living crises which has exacerbated the financial hardship of many families in the UK.
The four objectives of the review have been clearly defined, and are the metric by which any case for reform will be judged:
The review will also contemplate fairness and equality, cost and society when considering the wider reaching impact of any proposed changes.
There are already two proposed legislative changes which are likely be effective in the near future.
The Paternity Leave (Bereavement) Act 2024 is in development having received Royal Assent in May 2024. This act seeks to make provision for paternity leave in cases where the mother, or person with whom a child is placed or expected to be placed for adoption, has passed away.
We can also expect an enhancement of parental rights through the Employment Rights Bill, which seeks to:
However, even though these changes have already been proposed and are going through the legislative process, this broader review has been announced, suggesting that the reforms could go further.
It's worth comparing how other countries manage their parental leave, and whether this aligns with the four key objectives of the review. For example, Sweden offer up to 69 weeks (or 480 days) of parental leave, with the first 390 days at 80% income and remaining 90 days paid at a daily rate of £13.84 per day. 90 days is reserved exclusively for each parent, and the remaining 300 days can be shared between the parents. A system which offers parity between parents may be more suitable in a modern society, where it's common for both parents to be working.
The Department for Business & Trade and the Department for Work & Pensions have published a joint open call for evidence for a parental leave and pay review.
If you're interested in having your ideas and thoughts on the proposed parental leave and pay review considered, then you can get involved by completing the UK government survey here: Parental Leave and Pay Review - Call for Evidence Survey
Submissions are open from 1 July 2025 – 26 August 2025, information about confidentiality and data protection can be found here: Parental leave and pay review: call for evidence.
It's expected that the review will report its conclusions and recommendations in 18 months’ time. As such, it is unlikely that we will know what changes will be made prior to January 2027.
For further information or advice, please contact our employment team.
