Analysis Indicates Shared Parental Leave Favors Higher Earners Over Lower-Income Families

A recent examination of the government’s shared parental leave program reveals that its utilization is disproportionately concentrated among wealthier households in south-east England, rather than lower-income families. The shared parental leave initiative was launched a decade ago this week, with the intention of enabling fathers to assume a more significant role in childcare. However, The Dad Shift, a campaign organization, asserts that the scheme is “failing working families.” The Labour party has announced it is conducting its own review of parental leave policies. The Conservative-Liberal Democrat coalition government originally introduced shared parental leave as a state-funded provision, allowing parents to divide up to 50 weeks of leave and up to 37 weeks of pay following the birth or adoption of a child. Nevertheless, new data, exclusively obtained by BBC News, suggests that not all fathers benefit equally from the scheme. Figures acquired by The Dad Shift through a Freedom of Information request to HMRC indicate that the top 20% of earners account for 60% of those who utilize shared parental leave. Conversely, only 5% of individuals who took shared parental leave originated from the bottom 50% of earners. Furthermore, since its inception in 2014, the government has disbursed £40m in shared parental leave payments to families residing in London, a sum nearly 10 times greater than that paid out in the north-east of England. George Gabriel, co-founder of The Dad Shift, states: “There’s a big awareness gap, there’s a complexity problem and there’s a challenge about most men feeling uncomfortable taking leave off the mother of their child.” A government assessment from 2023 indicated that almost half (45%) of all fathers were unaware that shared parental leave was an available option. Moreover, it was utilized in less than 2% of all births during the previous year. Despite these issues, individuals who have used the scheme express positive views regarding its advantages. Pete Target, a 36-year-old from London, took nine weeks off work to care for his son, Jay, when he was nine months old. “It was everything I’d hoped for,” Pete comments. “We’re closer than we could have possibly otherwise been.” Yet, he acknowledges that it was a “difficult financial decision.” Since his period of shared parental leave fell outside the 37-week eligibility for government financial assistance, he received no pay for the time spent with his son. He believes that “something has to improve” to ensure more fathers can benefit. “I feel so lucky that we could afford the financial hit, [but] it needs to be practically possible for most men to do it.” He adds, “We need men to feel like they can take it.” Josh Wiborg, 21, was unable to take shared parental leave when his twin daughters were born, as he was the sole earner in his young family. Like many fathers, he was entitled to only two weeks of leave from work, at a reduced rate of pay. He recounts feeling “like a stranger” to his twin girls, Autumn and Winter, during the initial weeks of fatherhood. “It was awful,” he states. “My partner was struggling and I was struggling as well. It just wasn’t enough time.” Because his wife was not employed, Josh was ineligible for shared parental leave and instead opted for statutory paternity leave. This government-funded scheme permits fathers or secondary care providers to take two weeks off after a baby’s birth. Eligible individuals receive £184.03 per week or 90% of their average earnings, whichever amount is lower. Consequently, Josh’s income immediately decreased after the birth of his twin daughters. “I had to go back to work [after two weeks] and leave my partner on her own,” he explains. “I don’t know how we got through it.” The government has pledged to review parental leave within its first year in office. It aims for statutory paternity leave to be a day-one entitlement for all employees; currently, it applies only to fathers who have been employed for 26 weeks or more. However, campaigners argue that even with these proposed modifications, the UK’s parental leave system remains among the least generous in Europe. Blair McDougall, a father of two, is among several Labour MPs supporting The Dad Shift’s campaign for more extensive parental leave provisions. While he acknowledges the government’s need to “keep one eye on the economic reality,” he is engaged in discussions with a group of fellow backbench Labour MPs to explore whether future policy changes could extend beyond those already outlined. “Society has moved on but the rules around paternity haven’t,” he asserts. “We need to bring those up to date to help fathers be the type of dads that most of us want to be.” Some businesses independently fund enhanced paternity leave and shared parental-leave packages. These can include additional time off and pay boosted to full earnings or a rate higher than the statutory offering. Nevertheless, The Dad Shift advocates for taxpayers to finance “more substantial” parental-leave packages, thereby alleviating the financial burden on businesses and ensuring all parents can benefit. Paul Bowen, who employs approximately 30 individuals at his pie factory and shop in Chorley, Lancashire, notes that the increase in National Insurance contributions represents the latest in a series of financial pressures for small businesses like his. “I’d love to give our employees extra time off, but we simply can’t afford it,” he says. “If we can have help from the government, that’s where it needs to come from.” Josh is now deeply involved in raising his twin daughters, but he still recalls the “tricky” nature of those initial weeks. “The situation needs to be changed completely,” he states. During his struggles in early fatherhood, he sought assistance from North East Young Dads and Lads (NEYDL). He now works for the charity as a “peer enabler,” providing the same guidance and support that he once received. “I understand the struggles of other dads,” he remarks. “I know it’s stressful, so if I can just help one person it is so worth it.” Additional reporting by George Walker. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content of external websites. Information regarding our approach to external linking is available.