Half-term chaos, sleepless nights and a shrinking bank balance collide for new families, while Westminster finally looks their way.
MPs have opened a fraught debate on parental pay, exposing how statutory rates trail behind the national living wage and daily costs. Parents describe an impossible equation: newborn care, soaring childcare fees and incomes that dip just when a household needs them most.
The Westminster debate
A petition signed by thousands pushed MPs to confront a simple question: why does caring for a newborn pay less than the legal minimum for paid work? Stella Creasy MP, backed by colleagues across parties, argued that statutory maternity and paternity pay no longer bear any relation to the real price of early parenthood. The debate landed during school half-term, a week when many families juggle pay, childcare gaps and the credit card hangover from summer.
Jacob Collier MP set out the arithmetic that stuck in the chamber: once the initial six weeks at 90% pay pass, statutory maternity pay falls to £187.18 a week, which many families report equates to roughly £4.99 an hour. The national living wage now sits at £12.21. Michelle Welsh MP linked the gap to child poverty figures, pointing to local rates of 37% in Greater Manchester as a stark warning about long-term outcomes.
Raising a baby on an income effectively worth £4.99 an hour, while core costs climb, leaves families with hard choices.
How the £4.99 figure lands at home
Parents told MPs that the weeks after birth do not feel like time “off”. They feel like a second job with round-the-clock demands and unavoidable bills. Families face everyday expenses alongside nappies, formula or breastfeeding supplies, and travel to health appointments. Childcare prices dominate any plan for returning to work: one family, even after using 30 free hours, still faced a £3,000 monthly bill to hold down jobs. Others delay a second child because the maths simply does not stack up.
Self-employed parents describe an especially sharp edge. Maternity Allowance exists, but it mirrors the same flat rate as statutory maternity pay, and self-employed fathers or partners lack equivalent support. That makes shared care a privilege for households with savings or generous employer packages, not a realistic option for most freelancers or contractors.
| Measure | Number |
|---|---|
| Statutory maternity pay after 6 weeks | £187.18 per week (up to 33 weeks) |
| Approximate hourly equivalent reported by MPs | £4.99 per hour |
| National living wage | £12.21 per hour |
| Typical weekly cost of a baby | Estimated £406 per week |
| Child poverty cited in Greater Manchester | 37% of children |
| Typical paternity pay | 1–2 weeks at the minimum statutory rate |
Why early weeks and shared care matter
The 1,001-day window
MPs stressed that the first 1,001 days, from pregnancy to age two, shape brain development, health and later attainment. Secure attachment, responsive care and time to recover from birth sit at the heart of this. When pay falls sharply, parents face a trade-off: return to work early to keep up with bills, or stay at home and slide into debt.
The first 1,001 days shape a child’s future, yet many parents count pounds instead of focusing on bonding.
Fathers locked out
Low paternity pay keeps dads on the sidelines. When families cannot afford for both parents to take meaningful time off, mothers become the default carers, and fathers miss early routines and confidence-building. That pattern then feeds the gender pay gap, because women step back or step out, while men remain in full-time roles.
What MPs want to change
Calls in the chamber centred on two shifts: peg statutory maternity, paternity and shared parental pay to the national living wage, and create equal early leave at 90% pay for both parents. Ministers have launched a review of parental leave and pay, alongside the move to make parental leave a day-one right under the Employment Rights Bill. Campaigners welcome the momentum but warn that families struggling right now cannot wait months for proposals to turn into policy.
Match statutory parental pay to the living wage, and design equal, well-paid leave so both parents can care.
International picture and why the UK trails
Parents in several European countries receive a higher share of their usual earnings for longer. Sweden offers the longest runway, with hundreds of days at 80% pay that parents can share. Germany funds a substantial proportion of earnings for over a year. The UK’s flat-rate approach, after the short 90% window, leaves incomes far below a typical wage just as expenses rise.
What families can check today
- Ask HR about enhanced maternity, paternity or shared parental pay beyond statutory rates.
- Use Tax-Free Childcare if eligible: it can cover 20% of childcare costs up to set limits.
- Check Universal Credit or legacy benefit entitlements when income drops during leave.
- Review shared parental leave options if both parents qualify and employer policies are generous.
- Plan keep-in-touch days strategically to rebuild income without losing leave.
- Self-employed parents should confirm Maternity Allowance eligibility and payment schedule early.
A quick household calculation
Take a parent earning £28,000. During the first six weeks, pay sits at 90% of average weekly earnings. After that, it falls to £187.18 per week for up to 33 weeks. If the household faced childcare fees approaching £406 per week and regular bills for rent, food, utilities and travel, the gap becomes immediate. Savings vanish fast, and credit costs rise. If the other parent earns modestly, full-time work may not cover nursery fees for a child under two. That is why MPs argue for a rate linked to the living wage, not a flat sum detached from actual costs.
Policy choices and knock-on effects
Paying both parents at a decent rate for the first weeks helps breastfeeding, recovery from birth and sleep. It also supports early language, routine, and stronger mental health for both parents. Employers gain too: when fathers can take leave, mothers return sooner or with more certainty, reducing staff turnover and recruitment costs. For the wider economy, better early years outcomes correlate with lower costs in health, social care and education years later.
If change arrives slowly
Parents can still reduce the cliff-edge. Some nurseries lower fees when parents book full-time places or pay monthly in advance. Community childminding sometimes costs less than larger settings. Employers might offer salary-sacrifice schemes for childcare, or temporary flexible hours that split costs across the week. Families can also compare the value of returning one month earlier on a higher salary versus staying on the statutory rate, factoring travel and childcare. No option looks easy, but small switches can improve cashflow.
MPs now face a clear choice: update statutory rates to reflect the national living wage and design leave that parents can actually afford to take. The evidence about child development and family finances sits on the table. For the parent counting coins at 3am, the question is simple: when will policy match real life?
Hard to read that statutory pay drops to £187.18/week—roughly £4.99 an hour—while NLW is £12.21. That’s not ‘support’, it’s a poverty trap. If 37% of kids in Greater Manchester are already in poverty, how can we justify a flat rate that ignores real costs like £406/week? Pegging parental pay to the living wage and offering equal 90% pay for both parents isn’t radical; it’s basic economic sanity. The polcy review is welcome, but families can’t wait another fiscal cycle.