Key takeaways
Parental leave system under full review
Government aims to modernise support for working families.
Low uptake prompts policy rethink
Affordability and complexity are key barriers to access.
Employers should prepare for future reforms
Review may lead to changes in leave entitlements and costs.
Government announces review of parental leave and pay system
The government recently launched a review of the current parental leave and pay system. The review will look at how to modernise parental leave and pay to support families and help grow the economy. The government recognises that the parental leave system is complicated and does not always give families the support they need. For example, one in three dads do not take paternity leave because they cannot afford to, and take-up of shared parental leave remains very low.
The comprehensive review, which is expected to last for 18 months, will focus on the main existing parental leave and pay entitlements and one currently in development:
maternity leave/pay
paternity leave/pay
adoption leave/pay
shared parental leave/pay
unpaid parental bereavement leave
unpaid parental leave
neonatal care leave/pay
maternity allowance
bereaved partner’s unpaid paternity leave (expected to come into force in 2026)
The government’s aims for this review of the parental leave system are to:
identify objectives for the parental leave and pay system and set the foundation for considering what and for whom an improved system should deliver;
expand the existing evidence base and understanding of the current parental leave system, assessing what is and is not working well for families and employers – including looking at international models and drawing on stakeholder expertise;
consider the options and principles for a system of parental leave and pay that better supports its objectives, including identifying options with low or no cost to business and the exchequer;
develop a roadmap for transition to a system that better supports its objectives, including the changes needed to deliver improvements within the fiscally constrained economic context.
The review is expected to end around the end of December 2026, and the government then intends to publish its findings and a roadmap for the implementation of any reforms. We will report on any key developments
