Improved paternity leave could boost economy, says JRF

Increasing Statutory Paternity Leave from two weeks to six weeks at 90% of average weekly earnings could deliver a £2.68bn boost to the wider economy.
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A report from the Joseph Rowntree Foundation (JRF), in collaboration with the Centre for Progressive Policy (CPP), argued that the UK’s current paternity leave system is inadequate and undermines both family wellbeing and the economy.

According to the report, increasing Statutory Paternity Leave from two weeks to six weeks at 90% of average weekly earnings could deliver a £2.68bn boost to the wider economy.

The UK currently offers the least generous paternity leave in Europe.

Fathers are entitled to just two weeks of leave, paid at either £187.18 per week or 90% of their earnings – whichever is lower.

This is less than half the weekly income provided by the National Living Wage for a full-time job.

As a result, 70% of fathers who did not take their full leave said they were forced to cut it short due to financial constraints.

The report highlighted that the current system particularly disadvantages fathers in insecure jobs, low-paid roles, or self-employment, who are often excluded from receiving any Statutory Paternity Pay (SPP) at all.

Even those who qualify may not be financially resilient enough to absorb the income shock of such low-paid leave.

JRF proposed several key reforms. First, extending SPP to six weeks at 90% of average weekly earnings (capped) would support families in sharing caregiving duties more equally.

Second, introducing a new “Paternity Allowance” for self-employed fathers would help level the playing field.

Third, the report called for a day-one right to Statutory Paternity Pay for all fathers, to ensure broader and earlier access.

Jessica O'Connor

Jessica O'Connor is a Reporter at Workplace Journal

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