The Department for Work and Pensions (DWP) is currently reviewing nine payment rates that impact millions of households across the United Kingdom. This comprehensive review, known as the Parental Leave and Pay Review, aims to explore how the current system can be improved to better support working families.
Review Background
The Labour Party government launched a consultation last year to gather evidence and views to inform the review. This consultation also provided an opportunity to outline existing entitlements and the evidence base supporting potential reforms.
Update from Baroness Sherlock
In a recent update to the House of Lords, Baroness Sherlock stated: "The Parental Leave and Pay Review is considering all parental leave and pay entitlements as well as the support available for those who do not qualify for existing protections, such as kinship carers." She emphasized that supporting economic growth through labour market attachment is a core objective of the review. The government is committed to an evidence-based approach, taking into account a wide array of evidence, including outcomes for children.
Expected Timeline
The review is expected to report its findings in early 2027, outlining next steps for implementing any reforms.
Payments Under Review
The review will consider the following existing and upcoming leave and pay entitlements:
- Maternity leave and pay
- Paternity leave and pay
- Adoption leave and pay
- Shared parental leave and pay
- Parental bereavement leave and pay
- Parental leave (unpaid)
- Neonatal care leave and pay
- Maternity Allowance
- A new employment right, currently under development – bereaved partner’s paternity leave (unpaid)
Government Statement
In its consultation document, the government noted: "The ‘system’ of existing parental leave and pay entitlements has grown incrementally over time. Family life has changed radically since the 1970s when the Employment Protection Act 1975 was passed, which established the right to maternity leave for some working women." Subsequent additions have provided fathers, adopters, parental order parents, and others with statutory rights to take time off work to care for their children, with pay in some cases.
