Written evidence from The Work Foundation [SPL0039]

Introduction

1. The Work Foundation at Lancaster University is a think tank focused on improving working lives across the UK through applied research and innovative ideas. For over a century, we have worked to break down the barriers individuals and communities face in accessing, and remaining in, good work.
2. We believe everyone should have access to secure, rewarding, and high-quality work. By engaging directly with workers, employers, policymakers, and leading academics, we deliver rigorous applied research to tackle structural inequalities in the labour market and improve working lives across the UK. We are part of Lancaster University’s Management School, and work with a range of partners and organisations across our research programmes.
3. We have chosen to respond to selected questions. Our evidence submission focuses on questions three, four, five, six, and seven.

Executive Summary

4. Since its introduction in 2015, the uptake of shared parental leave (SPL) has been consistently low. A 2023 Government evaluation found that among eligible couples, only 1% of employee mothers and 5% of fathers took SPL following the birth or adoption of their child.[1]
5. Gendered labour market disparities reinforce this low uptake. Work Foundation analysis finds that working women are 1.8 times more likely to be in severely insecure work than men. Analysis shows that working mothers of children aged nine or under were 2.7 times more likely than fathers to experience severely insecure work (30.4% compared with 11.2%).
6. Being in insecure work can limit access to parental leave policies. On average those in insecure work earn around £3k per year less than those in secure jobs, making it more economically rational for women, rather than men, to take the majority of the parental leave.
7. In addition, high childcare fees coupled with limited places in childcare settings can further limit women’s employment options and make it more difficult for men to take SPL, as couples need to maximise their earnings during the first year of having a child in order to afford childcare once parental leave periods have finished.
8. A lack of employer knowledge and enhanced packages may also be contributing to low uptake. Two in five businesses (44%) offer the statutory requirements of SPL with 25% going beyond this by offering an enhanced package that exceeds the legal minimum. These are broadly in line with other forms of parental leave, but nearly a quarter of employers (23%) were unable to answer the question.
9. Low pay and job insecurity are likely to exacerbate inequalities in access to and the uptake of SPL. The announcement of the Employment Rights Bill could have a positive impact on extending family-friendly rights, but additional action is also likely to be required. To increase the uptake of SPL, the Work Foundation recommends that:
1. The Department for Business and Trade and the Government Office for Equalities should establish a roadmap to increasing the rate of income replacement offered by SPL, and if necessary, consult on the appropriate levels to introduce.[2] The overarching aim of further reforms should be to provide fathers and other secondary caregivers a viable, independent right to well-paid parental leave.
2. The Department for Education should develop a workforce strategy and Government should produce a long-term funding plan for the childcare sector. In addition to already planned improvements to childcare provision, parental leave – and paternity leave in particular – should be reviewed, to ensure that parents are entitled to the right levels of leave and fewer mothers face having to choose flexibility over security.[3]
10. More broadly, many women are forced to make trade-offs when they become parents, which can negatively impact their job quality and future career progression. With so few employers offering more than the statutory minimum, it is vital that access to parental leave is improved in the years ahead. In order to do so, the UK can learn from Finland, Estonia, Denmark, and Sweden.

Q3. What have been the labour market impacts of the scheme, particularly for women? AND Q4. Why has take up of statutory shared parental leave been low and what could be done to increase take up?

11. Since its introduction in 2015, the uptake of shared parental leave (SPL) has been consistently low. A 2023 Government evaluation found that among eligible couples, only 1% of employee mothers and 5% of fathers took SPL following the birth or adoption of their child.[4] The low uptake of SPL is influenced by several factors, which have broader implications for gender equality and labour market outcomes.
12. Economic considerations play a significant role: women in the UK still earn less than men on average, and Work Foundation analysis finds that working women are 1.8 times more likely to be in severely insecure work than men, with severe insecurity affecting 3.9 million women across the UK.[5] These factors can limit individuals’ ability to access SPL, and make it economically rational for women, rather than men, to take most of the parental leave, as the income penalty is less.
13. Gendered labour market disparities reinforce this low uptake. Even when women are in relatively senior positions, they are still more likely to experience severely insecure work than their male counterparts. This is particularly the case for disabled women and mothers of young children.[6]
14. Moreover, our analysis found that working mothers of children aged nine or under were 2.7 times more likely than fathers to experience severely insecure work (30.4% compared with 11.2%). These mothers of dependent children were 5.7 percentage points more likely than women without children to experience severely insecure work (30.4% compared with 24.7%).[7] These disparities further disincentivise couples to forgo some of the income of the higher earner, or those with the more stable income, which is most commonly fathers, by taking SPL.
15. Childcare expenses are a significant barrier, further limiting women’s options and making it more difficult for men to take SPL, as couples need to maximise their earnings during the first year of having a child in order to afford childcare once parental leave periods have finished. One in four insecure workers (27%) who are parents of young children aged up to five reported that childcare costs is their main consideration when looking for a job.[8] Women continue to be disproportionately impacted by these factors and are significantly more likely than men to see geographic limitations (including distance from their home), childcare costs, and availability of childcare as constraining factors for their job choice.[9] These constraints can also have long-term impacts on women’s careers, with women who have childcare responsibilities feeling that they had missed out on career progression opportunities due to needing to provide childcare.[10] This maternal pay penalty becomes a self-reinforcing factor in the low uptake of SPL for subsequent children, as the career progression and income of the father is likely to have further exceeded that of the mother.[11]
16. High childcare fees coupled with limited places at childcare settings in many areas can also prevent some parents from working. Mothers interviewed as part of a 2022 Work Foundation study of Universal Credit recipients and training opportunities expressed that they looked for roles that would let them stay close to their children’s schools and work hours to fit around available childcare.[12] Moreover, recent Work Foundation research found that two-parent households on the lowest incomes spend a larger share of their income on childcare compared with higher income households.[13]
17. The previous Government recognised that childcare was one of the biggest costs facing parents and introduced new support.[14] In April 2024, the Government introduced ‘free’ childcare for eligible working parents of two years. By September 2025, support will reach 30 hours for 38 weeks a year for eligible working parents with a child from 9-months-old up to school age. However, Pregnant then Screwed reported that almost a quarter (23%) of parents said they could not afford to access these free childcare hours because of top-up fees charged by nurseries.[15]
18. These combined factors mean it is often ‘economically irrational’ for fathers to take SPL. This dynamic is self-reinforcing and perpetuates traditional gender roles and limits the scheme’s impact on balancing workforce participation between men and women.
19. A 2024 Work Foundation survey of 1,167 senior business leaders across Great Britain revealed that whilst 44% of employers offer the statutory requirements of SPL, 25% go beyond this by offering an enhanced package that either moderately or substantially exceeds the legal minimum.[16] This enhanced package might, for example, include providing additional weeks of paid leave as part of the SPL policy.
20. According to our survey, the proportion of employers offering enhanced SPL is broadly in line with the proportion that offer enhanced maternity (26%) and paternity pay (26%), suggesting that employer enhancements to various parental leave packages happen in step.
21. A further 23% of respondents, however, reported that they are unable to answer the question about SPL levels in their organisation, suggesting that there is a significant lack of employer knowledge about this form of statutory leave. By comparison, only 16% were unable to answer the same question about whether the level of annual leave offered exceeds the statutory minimum.
22. It is therefore likely that a lack of employer knowledge and promotion of these schemes, combined with a lack of enhanced packages, may be contributing to their low uptake.

Q5. How can inequalities in take up of shared parental leave, including by ethnicity, income, qualification level and occupational status, be addressed?

23. There is a pressing need to improve not only legislation but also access to rights. Work Foundation research on time-off rights – including parental leave – has shown that while the UK performs relatively well in terms of entitlements, access to these rights varies significantly by income, occupation type, and other socioeconomic factors.[17] Those who face structural inequalities in the labour market – including individuals in low-paid or insecure work – often face greater challenges in accessing these entitlements. Structural barriers, such as low pay and job insecurity, are likely to exacerbate inequalities in the uptake of SPL.[18]
24. The announcement of the Employment Rights Bill is a positive step toward extending family-friendly rights. However, the absence of specific measures related to SPL is a cause for concern. To address these gaps, the Work Foundation recommends the following:
1. The Department for Business and Trade and the Government Office for Equalities should establish a roadmap to increasing the rate of income replacement offered by SPL, and if necessary, consult on the appropriate levels to introduce.[19] The overarching aim of further reforms should be to provide fathers and other secondary caregivers a viable, independent right to well-paid parental leave.
2. The Department for Education should develop a workforce strategy and Government should produce a long-term funding plan for the childcare sector. In addition to already planned improvements to childcare provision, parental leave – and paternity leave in particular – should be reviewed, to ensure that parents are entitled to the right levels of leave and fewer mothers face having to choose flexibility over security.[20]
25. Additionally, any reforms to the current model of SPL would need to take into account a variety of family structures including single parents. Recent Lancaster University research has found that there have been significant increases in labour force participation of single mothers over the past decade, and that full-time job hours are negatively associated with their mental health.[21] New parental leave rules in Sweden acknowledge this by enabling single parents to transfer 90 paid leave days to significant others such as grandparents.[22]

Q6. Are there potentially more effective alternatives to the current "maternal transfer" model of shared parental leave? AND Q7. Which countries have most effectively incentivised equal parenting and wider gender equality through their approaches to parental leave? What would be the costs and benefits of replicating these approaches in the UK?

26. Many women are forced to make trade-offs when they become parents, which can negatively impact their job quality and future career progression.[23] The imbalances in parental leave are driving gender inequality and exacerbating the gender pay gap. While employers technically have the ability to go beyond statutory requirements, just 16% of SPL policies provided by employers across Great Britain moderately exceed statutory requirements, and only 10% substantially exceed them.[24] With so few employers offering more than the bare minimum, it is vital that access to parental leave is improved.
27. There are several examples that the UK could learn from:
1. Finland: All parents, regardless of their gender or whether they are a child’s biological parents, are given 160 days paid leave.
2. Estonia: Maternity leave is for 100 calendar days (14 weeks) paid at 100% of earnings without cap, at least 30 calendar days of which have to be taken before the expected birth.
3. Denmark: Fathers are entitled to up to 14 weeks of paternity leave.
4. Sweden: Fathers are entitled to up to 240 days of paid leave, or 480 days if they are a single parent.[25] New parental leave rules (2024) allow parents to transfer up to 45 days of their paid leave to someone who isn’t the child’s legal guardian, such as a grandparent or close friend.[26] For single parents, up to 90 days can be transferred per child, to take account of the need for additional support.[27]
28. We recommend that the Government conducts a comprehensive review to create a roadmap for improving statutory parental leave. This review should explore the successful examples from other countries, assessing their potential costs and benefits, and identifying practical steps for adapting these approaches to the UK context.

References