Parental leave reform: what changes are being recommended?

The Women and Equalities Committee published its recommendations to help transform paternity leave rights in the UK. Currently, the UK offers one of the worst packages of paternity rights in Europe: just two weeks of statutory leave at £184 per week or 90% of earnings, whichever is lower.

Recommendations included:

1. Increase Statutory Paternity Pay (SPP) to 90% of earnings for at least the first weeks.
2. Raise parental leave pay to reflect at least the Real Living Wage or 80–90% of earnings.
3. Make paid paternity leave a “day one” right for all employed fathers/partners.
4. Extend paternity leave to up to six weeks, all paid.
5. Allow paternity leave to be taken in blocks (not just one continuous period).
6. Introduce an element of compulsory paternity leave, to signal importance and boost uptake.
7. Simplify Shared Parental Leave (SPL) eligibility and application processes.
8. Reduce notice periods and improve flexibility.
9. Consider financial incentives or reserved leave periods to encourage fathers to take up SPL.
10. Introduce a “Paternity Allowance” for self-employed fathers, similar to Maternity Allowance for mothers.
11. Ensure equal access to parental entitlements regardless of employment status.

SPL was intended to start to rebalance the system, but it has failed to deliver, and under 4% of couples use it. The result is predictable – mothers’ careers stall, while fathers return to work almost immediately.

If these recommendations ever come into force, then employers will need to plan for longer absences including coverage and updated HR policies. In return, they should hopefully benefit from better retention, enhanced loyalty, and a more attractive offer for younger workers.

Under the Employment Rights Bill, the Labour Government is proposing a raft of sweeping changes to employment rights in the UK. However, the biggest recommendations in the Committee report were not part of the Labour manifesto, and ministers have so far stopped short of promising higher pay or longer leave.

A review is under way and the Government’s response to the report noted that it expects “the review to run for a period of 18 months, and it will conclude with a set of findings and a roadmap, including next steps for taking any potential action”.

“Day-one” rights to paternity and parental leave (but not a day-one right to pay, so many query the benefit) will come into force in April 2026. However, the future for businesses and parents remains uncertain.

What should employers do now?

• Monitor policy changes closely.
• Prepare for April 2026 when “day one” rights kick in.
• Review cover plans: consider how you would manage longer paternity absences if the reforms progress.
• Audit current policies: benchmark your parental leave offer against competitors.
• Promote uptake: normalise men taking leave to improve equality and retention.

Reform is long overdue. Forward-thinking employers should consider acting now to get ahead of the curve.

If you have questions about paternity regulations or would like advice on your paternity leave policy, please contact Emma Clark.