Why Shared Parental Leave needs a major overhaul
With Shared Parental Leave uptake at an all-time low, we explore how the UK can break down barriers, learn from Europe, and create more equitable opportunities for families and businesses.
How does Shared Parental Leave work?
Shared parental leave (SPL) currently allows parents and adoptive parents to share up to 50 weeks of leave following the birth of a child. After the birth parent takes their compulsory two weeks (four weeks for factory workers), the remaining time can be shared between both parents.
For some families, this flexibility has been life changing. For example, in 2016, my family benefited from shared parental leave after the birth of our daughter. The thought of managing our other children during the summer holidays, alongside a newborn, felt overwhelming. Discovering that both parents could take leave simultaneously allowed us to plan ahead, avoid unexpected absences, and provide better care for our family.
Many businesses in the UK feel the strain of unplanned time off for dependents (TOD), especially during the first year of a child’s life. Could better utilisation of shared parental leave reduce this disruption with a more structured and supportive approach?
How much does TOD cost the UK?
According to a recent study, the cost of absenteeism to UK businesses is a staggering £103 billion annually, with a significant portion attributed to TOD. However, uptake of shared parental leave remains shockingly low. According to another study, In 2023, less than 2% of UK families utilised the scheme.
Of those who did, only 5% of leave was taken by low earners, while 60% was taken by the top 20% of earners. One contributing factor is the statutory pay rate of £184.03 per week (24/25) for the first 37 weeks, with any additional leave unpaid.
How does the UK compare to Europe?
The UK offers one of the longest parental leave periods globally, with 52 weeks of maternity leave, but it is also one of the worst paid. After the first six weeks of maternity leave, most of the remaining time is paid at the statutory rate or unpaid entirely.
By contrast, Norway sets the gold standard, offering 12 months of leave for each parent at 80% of their average earnings over the past three years. This ensures equitable access for both high and low earners, eliminating disparities seen in the UK.
What’s next for Parental Leave in the UK?
The government has pledged to review parental leave within its first year, aiming to introduce paternity leave as a day-one right. While this is a positive step, the UK still lags far behind its European counterparts.
Employers offering enhanced maternity benefits might consider extending similar enhancements to shared parental leave for partners. While current case law suggests it isn’t discriminatory to exclude shared parental leave from these benefits, the increasing focus on family-friendly policies, diversity, and equality could prompt changes in future legislation.
A step towards family-friendly workplaces
Shared parental leave has the potential to ease the burden on families and businesses alike, but low pay and poor uptake highlight significant barriers. As the government sets its sights on reform, businesses have an opportunity to lead the way in creating equitable, supportive workplaces that reflect the changing needs of modern families.
