Study finds fathers can’t afford to take paternity leave

The TUC study

The polling study by TUC surveyed 2,006 parents of children under the age of six in February 2023.

Professionals have said employers need to think carefully about how paternity leave can impact families and how further financial gains such as bonuses and commissions would also have an impact.

One author of a parenting book said: “Compensation plans and bonuses need to allow for an employee to take leave and not be penalised for having a child.

“For example, in the sales profession, many representatives must forgo commissions while on parental leave or even give up accounts.

“Many return to work having to rebuild their businesses from scratch and often result in exiting the company due to this.

“There are many reports of sales reps and executives losing hundreds of thousands when they go on leave due to the timing of a large commission or bonus.

“Parental leave compensation must be clarified in every area, not just salary.”
The study also stated that half of parents said they didn’t feel they could support their family enough with the paternity leave they had.

Head of Employer Services at charity Working Families said financial reasons are not the only reason that limits paternity leave uptake.

She said: “On the surface, a simple way of encouraging more fathers to take parental leave is to match their salary; many fathers indicate the loss of earnings will impact their choice.

“But this is only part of the story. Cultural bias and blatant negative comments about parents can lead to many fathers not taking the leave, as they are concerned about how they will be treated by their colleagues.”

Further studies findings – PTS Study

Another study conducted by a maternity charity, Pregnant then Screwed (PTS) found that closing the gender employment gaps in the UK would increase economic output by £23 billion.

The study used over 20,000 answers and applied weighting on UK regions, gender, and social grade to get a final sample of 3,540 parents.

People in the UK also thought two weeks of paternity leave was not enough (18%).

The Head of Campaigns and Communication at PTS said there would be a reduction in gender inequalities in pay, career progression, employment, and the provision of childcare if paternity leave was increased.

She said: “If we are serious about closing the gender pay gap – we need to put policies in place for mothers and fathers that instigate equality from the get-go.

“By having parental leave policies that are equal for both mothers and fathers, companies are giving the message loud and clear across the company that they support gender equality in childcare.”

The charity is calling for an increase in statutory paternity leave to six weeks at 90% of income. This is because the research found that only 18% of prospective parents said they would be able to afford six weeks of paternity leave at the current statutory pay rate.

Most of the prospective parents (57%) said they could afford to take six weeks of paternity leave if it was paid at 90%.

The Head of Campaigns and Communication said employers need to go beyond current statutory requirements.

She said: “If affordable, we strongly encourage employers to offer enhanced paternity leave – above and beyond the government’s statutory provision – for two weeks at full pay or ideally longer.

“Some employers have chosen to make access to paternity leave a day one right, removing the 26-week qualifying period.

“Offering generous leave policies like this can establish an organisation as an employer of choice for parents, enabling these employers to compete for and secure the best talent.”

Employer advice on paternity leave

As the research suggests, paternity leave is something employers need to improve if they want to create better financial certainty for parents.

Something to think about is offering enhanced paternity leave as the stats suggest the government’s statutory pay rate is not enough for many families.

We provide free support if you’re an employer and need advice on paternity leave. We offer 24/7 assistance to guide you through HR and employment law questions.

Please speak to one of our HR and employment law advisors free at 0800 144 4050 or fill in the form here to request a callback. Contact us today for free ACAS advice.