Tag: Plan to Make Work Pay

Labour government launches landmark review of parental leave

Westminster Government launches a full review of parental leave and pay, to better support working families and help children get the best start in life

  • Government launches a full review of parental leave and pay to better support working families and help children get the best start in life
  • Review will look at all types of leave – including maternity, paternity and shared parental leave – to make the system fairer and easier to use
  • Part of the Plan to Make Work Pay – boosting growth, improving living standards for working families and ensuring working parents feel supported during this life-changing time

Millions of families could benefit from a better start for their children as the government launches a major review of the parental leave and pay system – the first of its kind in Britain.

As part of the Government’s Plan for Change, this review will look at how to modernise parental leave to support today’s families and help grow the economy.

The review will look at the whole system – from maternity and paternity leave to shared parental leave – to see how it can work better for parents and employers.

Right now, the system is complicated and doesn’t always give families the support they need. One in three dads don’t take paternity leave because they can’t afford to, and take-up of shared parental leave remains very low.

This is a unique moment in family life – the arrival of a child is joyful, but also physically and emotionally demanding. It’s a time when new mothers need rest and recovery, and when both parents need space to bond with their baby and adjust to a new way of life.

That’s why it’s so important that fathers and partners are able to be present – not just to support their partner’s recovery, but to play an active role in caring for their child from day one.

Research shows that better parental leave can help close the gender pay gap and boost the economy by billions of pounds.

The review will gather views from parents, employers and experts across the country and will end with a roadmap for possible reforms.

This delivers on a key pledge in the Plan to Make Work Pay and supports two of the government’s core missions – growing the economy and breaking down barriers to opportunity.

Deputy Prime Minister Angela Rayner said: ““Those early years are the most special time for families, but too many struggle to balance their work and home lives. Supporting working parents isn’t just the right thing to do – it’s vital for our economy.

“Through our Plan to Make Work Pay, we’re already improving the parental leave system with new day 1 rights. This ambitious review will leave no stone unturned as we deliver for working families.”

Business Secretary Jonathan Reynolds said: “The arrival of a child, whether through birth or adoption, is a life-changing moment. We want to make sure parents get the support they need to balance work and family life.

“Campaigners have long called for change, and this Government has listened. This review is our chance to reset the system and build something that works for modern families and businesses.”

Work and Pensions Secretary Liz Kendall said: “Every parent should have the chance to spend time with their children during those precious early years.

“This review delivers on our Plan for Change to support families and give children the best start in life.

“By listening to parents and employers across the country, we’ll build a system that works for today’s working families.”

Jane van Zyl, CEO at Working Families: “We’re pleased to see the Government take this important step forward and welcome the Terms of Reference set out in the parental leave review.

“It’s encouraging that several of the key asks in our open letter, signed by 22 leading organisations and 16 academics, have been taken on board, particularly the commitment to deliver a comprehensive review, which considers statutory pay levels and will consult the public.

“Backing up the Government’s findings, our own research shows the current system is falling short, with one in five fathers having no access to parental leave at all, and many others unable to take what they’re entitled to due to financial pressures.

“This review is a vital opportunity to build a parental leave system that supports the needs of families today.”

George Gabriel, co-founder of The Dad Shift: ““The Government’s review of parental leave is the best chance in a generation to improve the system and make sure it actually works for working families.

“When the last Labour government introduced paternity leave it was groundbreaking. But that offer, unchanged since, is now the least generous in Europe. Our broken parental leave has been overlooked for years, and finally sorting it out would be good not only for parents and children but for businesses too.

“The tens of thousands of mums, dads and future parents that make up our campaign are delighted the Government is delivering its promised review, and ambitious for the change to come.”

Rachel Grocott, CEO of Pregnant then Screwed: “It is great to see this long overdue review of the parental leave system. It’s time for the voices of mums, dads, parents and carers everywhere to be heard.

“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.

“Yet we know improving parental leave helps children get the best start in life, as well as being better for parents’ heath and equality at home, and closing gender pay and participation gaps in the workplace too. 

“Investing in parental leave will pay back above and beyond, to the bottom line and to society: it really is a no-brainer.”

Chancellor vows to work in partnership with business ‘to fix the foundations’

The Chancellor ‘ushered in a new era of business partnership’ yesterday (29 August) as she met business groups together for the first time as Chancellor.

Rachel Reeves told senior business leaders that just as they had worked together in opposition to write their plans for government, they will work together now to deliver them.

In her first meeting with the BCC, CBI, FSB, Make UK and IoD as Chancellor, she said that businesses will be at the heart of delivering the government’s growth mission, as it takes action to fix the foundations of the economy to rebuild Britain and make every part of the country better off.

Ahead of October’s Budget, Reeves promised to ‘co-design’ policy with business on shared priorities to boost growth, pointing to the same approach being taken for designing the National Wealth Fund. 

She pledged to establish a new British Infrastructure Council to advise government on how to support more investment into UK infrastructure projects, and work closely with business to bring down barriers to growth and investment.

Reeves told senior business representatives the Treasury’s door was always open to valuable business insights on the opportunities and challenges they face. 

She added that the Business Secretary is committed to the new Industrial Strategy Council having a strong business voice and is also consulting with business on the details on Plan to Make Work Pay.

Business representatives also gave their views on what a successful partnership with government could look like and areas to prioritise to help their members grow and invest. 

Speaking after the meeting, Chancellor of the Exchequer Rachel Reeves said: “Under this new government’s leadership, I will lead the most pro-growth, pro-business Treasury in our history – with a laser focus on making working people better off. 

“That can only happen by working in partnership with businesses: big, medium and small. I want to continue the strong partnership we built with business in opposition now we are in government to deliver on our shared goal of fixing the foundations of our economy, so we can rebuild Britain and make every part of the country better off.”

Stephen Phipson CBE, CEO of Make UK, the manufacturers’ organisation said: “The Chancellor promised that she would engage properly with business and today was more evidence that the promise is being honoured.

“It was very welcome to have the Chancellor highlight further progress in delivering an Industrial Strategy with assurances that the governing Council would have a strong business voice.  

“In order to build confidence for businesses to increase investment, it is critical we keep this momentum going and see more detail on the delivery as well as vision. UK Manufacturers are fully behind the government’s growth agenda and look forward to working in partnership with government to achieve it.”

Shevaun Haviland, Director General of the British Chambers of Commerce said: “Today’s meeting was a valuable opportunity to reaffirm our commitment, on behalf of the businesses across our Chamber network, to work in partnership with Government. 

“We outlined our priorities for the Autumn Budget, recognising the public finance challenge. Boosting economic growth and investment is crucial, while maintaining a fiscal environment that protects the UK’s business competitiveness. 

“We welcome the Chancellor’s pledge to work with us on plans for an industrial strategy and to boost infrastructure investment. 

“We look forward to more discussions with the Chancellor and the Treasury team ahead of her statement on October 30th”

Tina McKenzie MBE, Federation of Small Businesses Policy Chair, said: “Today’s meeting was a crucial partnership moment, and I was pleased to raise issues and growth ideas from FSB members up and down the country, in every local community.

“You don’t get growth, jobs or wealth creation without UK small businesses; this was a core feature of our discussions in Opposition.  

“Now as the Chancellor and her team turn to the Budget, the diversity of UK businesses – 99% of which are the small, micro or self-employed that we represent – needs reflecting in Government policy-making just as much.”

CBI CEO Rain Newton-Smith said: “Businesses are the engine of growth and will be central to achieving the government’s mission to boost the UK economy. It’s why the CBI welcomes the Chancellor’s promise to co-design policy with the business community.

“Together, we can find shared solutions to shared problems – to increase productivity and business investment – in turn, improving living standards.

“The CBI is proud to work in close partnership with the Treasury, providing a cross-economy voice to help remove the roadblocks holding back investment and sustainable growth.”

Jonathan Geldart, Director General of the Institute of Directors, said: “For the government to successfully deliver its growth mission, it will be crucial that it works in partnership with business.

“Therefore, we look forward to building on the productive relationship that we have developed with the Chancellor, to ensure that the priorities and challenges of businesses and entrepreneurs are understood and acted upon.

“Specifically, as we approach her first Budget in the autumn, we are calling on the Chancellor to take time to get policy design right for the long-term, to deliver the stable tax and policy framework needed to support business confidence and investment.”