Commons Sense

House of Commons · Westminster Hall

Cost of Living: Parental Leave and Pay

19 June 2023 · 4 other contributors · 15,207 words

Opened by Catherine McKinnell Lab Newcastle upon Tyne North

Responding minister: Mims Davies

EconomyEmploymentBenefits & Welfare

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Catherine McKinnell raised concerns about cost of living: parental leave and pay in Westminster Hall. A government minister responded.

Key points

  • Ms Catherine McKinnell raised concerns about the impact of high inflation on new parents, citing a petition with over 166,498 signatures.
  • Ms McKinnell asked the Government to review statutory maternity pay in line with inflation and equalize access to statutory parental pay for adoptive parents, including the self-employed.
  • The Minister discussed the Government's measures to support parents, including increasing statutory parental payments by 10.1% and expanding free childcare.

Key requests to Government

Ms McKinnell asks the Government to review statutory maternity pay in line with inflation, equalize access to statutory parental pay for adoptive parents (including self-employed), and improve the take-up of Healthy Start vouchers. She also seeks a commitment from the Minister to address issues related to parental leave and pay.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Catherine McKinnell Lab Newcastle upon Tyne North

Ms Catherine McKinnell is concerned about the impact of high inflation on new parents, particularly mothers. She cited a petition with over 166,498 signatures highlighting that statutory maternity pay has not kept up with cost-of-living increases, leaving many parents struggling to afford basic necessities like food and formula milk. She noted that 93% of new parents believe government support is inadequate and 92% reported difficulty accessing social activities due to financial constraints.

Other contributors (4)
  • David Linden SNP Aberdeen South

    Concerned about the cost of living crisis impacting constituents, particularly young families. Calls for improvement in parental leave and pay policies to support parents with premature or sick babies, those who have suffered miscarriages, and workers on insecure contracts. Criticizes the British Government's social security system, especially the two-child limit policy and the young parent penalty in Universal Credit. The hon. Member makes the powerful point that more often than not it falls to the third sector to step in and support people. He agrees that it is not a sign of the big society that these groups, however great the work they are doing is, fulfil that need, but a sign of a broken welfare state that is fundamentally beyond repair. I caution the Government that simply hoping employers will do the right thing is not reliable. There is cross-party agreement on this issue, and HMRC should expedite guidance despite the £50 million committed in the budget.

  • Jim Shannon DUP Strangford

    Mr. Shannon highlighted the financial pressures on young families, particularly regarding maternity leave and pay, citing specific instances of mortgage costs rising to £26,000 and £14,000 due to interest rate changes. He mentioned that UK families spend about £6,000 during a baby's first year and called for an increase in statutory parental leave payments to support those on low incomes. Addressed the cost of raising children, noting that the first year can cost around £6,000. Mentioned the impact of high housing and mortgage costs on new parents. Asked about tax relief for parents who lose income while on parental leave. Also raised concerns regarding the impact of high inflation on families' ability to afford childcare costs.

  • Justin Madders Lab Ellesmere Port and Bromborough

    Discussed the rising costs of parenthood, highlighting that statutory maternity pay does not adequately cover these expenses. Cited statistics showing a significant increase in baby formula prices and noted concerns over inflation affecting new parents' financial stability.

  • Munira Wilson Lib Dem Twickenham

    The hon. Member for Twickenham argues that statutory paternity and maternity pay levels are too low, at less than half of full-time minimum wage, forcing parents back to work despite the cost of living crisis. She also highlights the importance of shared parental leave and suggests increasing paternity leave from two weeks to a period more in line with advanced economies' averages.

Government Response

Mims Davies

Discussed the Government's commitment to supporting parents through measures such as increasing statutory parental payments by 10.1%, expanding free childcare, and introducing new rights like neonatal leave and pay. The Minister highlighted ongoing work on flexible working policies and acknowledged challenges in areas like miscarriage leave and tax relief for parents. She also committed to further engagement with stakeholders to address petitioners' concerns.

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