Raise statutory maternity/paternity pay to match the National Living Wage

Statutory maternity and paternity pay is £4.99 per hour for a full-time worker on 37.5 hours per week - approximately 59% less than the 2024 National Living Wage of £12.21 per hour for workers aged 21+, which has been set out to ensure a basic standard of living.

If the National Living Wage is £12.21 per hour to legally enforce and ensure a basic standard of living, why is statutory maternity or paternity pay just £4.99 per hour?

We feel that working parents, especially women, who contribute to the tax system are being pushed into poverty at their most vulnerable time. We believe this undermines family stability and suggests the Government does not prioritise childbirth or its economic value.

The Government recognises the importance of parents having time away from work to care for a new child in their family. This is a key part of our plan to Make Work Pay, which aims to improve the quality and security of work. Parental leave and pay entitlements include Maternity, Paternity, Shared Parental and Neonatal Care Pay, as well as Adoption Leave and Pay, all of which are designed to support parents to take leave whilst retaining an attachment to the labour market so they can return to work when appropriate.

Maternity pay is primarily a health and safety provision for pregnant working women, providing a measure of financial security during this important time.

There are two types of maternity pay available to pregnant working women: Statutory Maternity Pay (SMP), paid by employers and Maternity Allowance (MA), paid by the Department for Work and Pensions (DWP) to eligible women (including the self-employed and women in employment who are not eligible for SMP). The qualifying conditions for both SMP and MA are based on a woman's recent employment and earnings.

Both SMP and MA are paid for up to a maximum of 39 weeks. For SMP, the first six weeks are paid at a weekly rate equal to 90 per cent of the woman's average weekly earnings, with no upper limit, followed by up to 33 weeks at the lower of either the standard rate or 90 per cent of the woman's average weekly earnings. MA is paid at either the standard rate or 90 per cent of the woman’s average weekly earnings, whichever is the lower, for a maximum of 39 weeks.

Paternity Leave and Pay arrangements enable eligible employed fathers and partners to take up to two one-week blocks of leave, either consecutively or separately, during the first year following the birth of their child or placement for adoption. Paternity Pay is paid at the statutory rate.

The Government has set an aim to deliver a genuine living wage for every adult worker; the increase to the National Living Wage (NLW) to £12.21 is intended to make progress towards that. As this petition highlights, this payment is higher than the equivalent hourly rate of Maternity/Paternity Pay. However, Maternity and other types of Parental Pay are intended to provide a measure of financial security to support parents whilst they are away from the workplace; they are not a replacement of earnings and therefore are not directly comparable.

The Government understands the importance of ensuring statutory payments are set at the right level. The Secretary of State for Work and Pensions is required by law to undertake an annual review of benefits and State Pensions, including statutory pay. This is based on a review of trends in prices and earnings growth in the preceding year. From April these payments were uprated in line with the Consumer Prices Index of 1.7 per cent, with their standard rates increasing from £184.03 to £187.18 per week. This means that the benefits retain their value against inflation.

When considering calls to increase the level of parental benefits, the Government must balance a range of factors including the needs of parents, the impact on employers, and affordability for taxpayers. This is particularly true in today’s challenging economic climate. As such, any changes would need to be carefully considered, taking into account views from businesses and other stakeholders.

This petition has raised concerns that working parents, especially women (and by association, their child/children) are being pushed into poverty at their most vulnerable time. The Government recognises the financial pressures facing many pregnant women and new mothers and has measures in place to support them and their families. Maternity Pay is just one element of the support available. Indeed, depending on an individual’s circumstances, additional financial support, for example, Universal Credit, Child Benefit, and the Sure Start Maternity Grant (a lump sum payment of £500), may also be available. More information about benefits and financial support available to pregnant women and their families can be found on www.gov.uk via the Childcare and Parenting link on the home page.

Delivering the manifesto commitment to tackle child poverty is an urgent priority for this Government, and we will bring forward a Child Poverty Strategy as soon as possible.

In addition, this Government is taking a mission-based approach to raise the healthiest generation of children ever and ensure that every child has a healthy, happy start to life. Giving children the best start in life means delivering accessible, integrated maternity, baby and family support services through the 1,001 days from conception to age two.

The Government also committed in the manifesto to review parental leave to ensure that it best supports working families. Planning is underway and further details of the review will be announced in due course.

Department for Work and Pensions