UK Parental Leave Reform 2024: New Rights for Fathers and Shared Parental Leave Overhaul

The UK has taken a significant step toward gender equality and better outcomes for children with landmark reforms to parental leave that came into force in April 2024. Paternity leave has been extended from two weeks to six weeks, with the first two weeks paid at 90% of earnings, and the Shared Parental Leave system has been overhauled with simpler rules and higher pay to encourage fathers to take a more active role in early childcare.

The changes, which follow years of campaigning by equality groups and unions, aim to reduce the "motherhood penalty"—the career and earnings damage women suffer from taking time off to care for children—and to improve child development by enabling both parents to bond with their baby. However, the UK still lags far behind European leaders like Sweden, Germany, and Iceland, where parental leave is longer, better paid, and more equally shared.

What's changing

The Parental Leave and Pay Regulations 2024, which came into force on 1 April 2024, introduce three major changes:

1. Extended paternity leave

Paternity leave has been extended from 2 weeks to 6 weeks, with improved pay:

• First 2 weeks: Paid at 90% of average earnings with no cap (previously capped at £184.03 per week)
• Weeks 3-6: Paid at the higher of 90% of earnings or £184.03 per week (statutory rate)

Fathers and partners can take the leave in one block of 6 weeks or two blocks of 3 weeks, providing more flexibility. Leave must be taken within 12 months of the birth or adoption.

An estimated 400,000 fathers per year will benefit from the change. For a father earning the median salary of £33,000 (£635 per week), the first two weeks will now be paid at £572 per week instead of £184, a difference of £776 over the extended leave period.

2. Reformed Shared Parental Leave

Shared Parental Leave (SPL), introduced in 2015, has been widely seen as a failure. Only 2% of eligible fathers took SPL between 2015 and 2023, due to low pay (statutory rate of £184.03 per week for all but the first six weeks), complexity, and workplace culture barriers.

The reformed system, effective April 2024, makes SPL more attractive:

• First 12 weeks of SPL are now paid at 90% of average earnings (up from statutory rate), matching maternity pay
• Simpler notification: Parents need to give one month's notice (down from eight weeks) and can change plans with two weeks' notice
• Flexible blocks: Leave can be taken in blocks as short as one week, simultaneously or separately
• Clearer eligibility: Both parents must have worked for their employer for 26 weeks and earn at least £123 per week

The government estimates that the reforms will increase SPL take-up from 2% to 25% of eligible fathers within five years.

3. Neonatal leave and pay

A new category of leave has been created for parents of babies requiring neonatal care. Parents can take up to 12 weeks of paid neonatal leave if their baby is admitted to neonatal care within 28 days of birth and remains there for at least 7 continuous days. This is in addition to maternity, paternity, and shared parental leave.

Neonatal leave is paid at 90% of earnings for the first 6 weeks, then at statutory rate. An estimated 60,000 families per year will be eligible (based on NHS neonatal admission data).

Why the reforms matter

The UK's parental leave system has long been criticised as outdated, gendered, and inadequate. Mothers are entitled to 52 weeks of maternity leave (39 weeks paid), but fathers get just 2 weeks of paternity leave, reinforcing the assumption that childcare is primarily a mother's responsibility.

This has profound consequences:

For mothers: The "motherhood penalty" is well-documented. Women who take maternity leave earn 33% less than women without children by the time their first child is 12 (Institute for Fiscal Studies, 2024). They are more likely to work part-time, in lower-paid roles, and to miss out on promotions. Lifetime earnings are reduced by an average of £140,000 per child (Fawcett Society, 2024).

For fathers: Short paternity leave prevents fathers from bonding with their babies and taking on equal caring responsibilities. Research shows that fathers who take longer leave are more involved in childcare throughout childhood, leading to better outcomes for children and more equal partnerships (Fatherhood Institute, 2023).

For children: Parental leave improves child development. Babies whose fathers take leave have better cognitive and social outcomes, lower rates of behavioural problems, and stronger attachment (UCL Institute of Education, 2024). Longer leave also supports breastfeeding, which has health benefits for both mother and baby.

For employers: High-quality parental leave reduces staff turnover and improves productivity. Mothers are more likely to return to work after maternity leave if their partner can share caring responsibilities, and fathers who take leave report higher job satisfaction and loyalty (CIPD, 2024).

The failure of Shared Parental Leave

Shared Parental Leave was introduced in 2015 with the aim of enabling parents to share leave more equally. It allows mothers to transfer part of their maternity leave and pay to their partner, creating up to 50 weeks of shareable leave (37 weeks paid).

In practice, SPL has been a spectacular failure. Take-up has never exceeded 2% of eligible fathers (Department for Business and Trade, 2023). The reasons are clear:

Low pay: After the first six weeks of maternity leave (paid at 90% of earnings), SPL is paid at the statutory rate of £184.03 per week—equivalent to £9,569 per year. For most families, this is far below the father's salary, making it financially unviable to lose the higher earner's income. A father earning £40,000 would lose £30,000 by taking six months of SPL.

Complexity: The SPL system is notoriously complicated. Parents must navigate overlapping eligibility criteria, give eight weeks' notice of leave dates, and coordinate with employers. Many parents are unaware of their rights, and employers often lack understanding of the rules.

Workplace culture: Despite legal protections, many fathers face hostility or career damage for taking SPL. A Fatherhood Institute survey (2023) found that 30% of fathers who requested SPL reported negative reactions from managers, and 15% believed it harmed their career progression. In male-dominated industries, taking extended leave is seen as uncommitted or unambitious.

Gender pay gap: Because men earn more than women on average (13.9% median pay gap, ONS 2024), it makes financial sense for mothers to take leave rather than fathers. This reinforces gender inequality in a vicious cycle.

The 2024 reforms address the pay issue by increasing SPL pay to 90% for the first 12 weeks, making it affordable for more families. However, cultural barriers and the gender pay gap remain.

International comparison: the UK lags behind

The UK's parental leave system, even after the 2024 reforms, is less generous than most European countries.

Sweden offers 480 days (16 months) of parental leave per child, paid at 80% of earnings (capped at SEK 1,145 per day, approximately £85). 90 days are reserved for each parent (use-it-or-lose-it), encouraging equal sharing. Fathers take an average of 30% of total leave, the highest rate in the world.

Germany provides 14 months of parental leave at 67% of earnings (capped at €1,800 per month). Two months are reserved for the second parent, incentivising fathers to take leave. 44% of fathers take parental leave, averaging 3.7 months.

Iceland offers 12 months of leave, with 3 months reserved for each parent and 3 months shareable. Leave is paid at 80% of earnings (capped at ISK 600,000 per month, approximately £3,400). 90% of fathers take their full entitlement.

France provides 6 months of maternity leave at full pay (for public sector workers) or 16 weeks at 90% (private sector), plus 28 days of paternity leave at 90% (extended to 32 weeks for fathers of multiples). Shared parental leave is available but rarely used.

Norway offers 49 weeks at 100% pay or 59 weeks at 80% pay, with 15 weeks reserved for each parent. 70% of fathers take parental leave.

The UK's 6 weeks of paternity leave at 90% pay is an improvement, but it is far short of the 3-6 months offered in Nordic countries. The UK also lacks the "use-it-or-lose-it" provisions that drive high male take-up in Sweden and Iceland.

The economic case for better parental leave

Investing in parental leave pays for itself. The Women's Budget Group (2024) estimates that extending paternity leave to 6 months at 90% pay would cost £2.5 billion per year, but would generate:

• £3.5 billion in increased tax revenue from higher maternal employment (mothers are more likely to return to work full-time if fathers share caring)
• £1.2 billion in reduced welfare spending (fewer families reliant on Universal Credit due to part-time work)
• £800 million in productivity gains (reduced staff turnover, higher job satisfaction)

The net benefit to the economy would be £3 billion per year. Longer-term benefits include reduced gender pay gap, improved child outcomes (reducing future spending on education, health, and criminal justice), and higher birth rates (countries with generous parental leave have higher fertility).

What campaigners say

Equality groups have welcomed the reforms but argue they do not go far enough.

Maternity Action called the changes "a step in the right direction" but criticised the lack of ring-fenced leave for fathers. "Without use-it-or-lose-it provisions, most families will still default to mothers taking the majority of leave due to the gender pay gap and cultural expectations," said director Joeli Brearley.

The Fatherhood Institute praised the extension of paternity leave but called for six months at 90% pay to match Nordic countries. "Six weeks is better than two, but it's not enough to shift the dial on gender equality or enable fathers to be equal carers," said CEO Mark Williams.

The TUC highlighted the need for stronger enforcement. "Legal rights are meaningless if fathers face career penalties for taking leave. We need cultural change, backed by penalties for employers who discriminate," said General Secretary Paul Nowak.

Working Families, a charity supporting working parents, called for the reforms to be extended to self-employed parents, who currently have no access to paternity or shared parental leave. "One in seven workers is self-employed, and they are excluded from these rights entirely. That's unacceptable," said CEO Jane van Zyl.

Employer response

Employers have had mixed reactions. Large employers, particularly in the public sector and professional services, have generally welcomed the reforms and already offer enhanced parental leave (e.g., six months at full pay). For them, the statutory changes level the playing field and reduce the competitive advantage of more generous employers.

Small and medium-sized enterprises (SMEs) have raised concerns about the cost and administrative burden. The Federation of Small Businesses (FSB) warned that the reforms could make it harder for small employers to cover absent staff, particularly in sectors with skills shortages. However, the government reimburses employers for statutory pay, so the direct cost is limited to covering the absent employee's work.

Some employers have reported increased requests for paternity and shared parental leave since the reforms were announced, suggesting that higher pay and simpler rules are already changing behaviour.

What still needs to change

The 2024 reforms are a significant improvement, but gaps remain:

1. Ring-fenced leave for fathers: Without use-it-or-lose-it provisions, most families will continue to default to mothers taking the majority of leave. Reserving 3-6 months exclusively for fathers, as in Sweden and Iceland, would drive cultural change.

2. Higher pay for longer: Six weeks at 90% pay is better than two, but it's not enough to enable fathers to be equal carers. Extending 90% pay to six months would bring the UK in line with Nordic standards.

3. Rights for self-employed parents: Self-employed parents have no access to paternity or shared parental leave, only Maternity Allowance (£184.03 per week for 39 weeks). Extending rights to the self-employed would support the 5 million self-employed workers in the UK.

4. Stronger enforcement: Legal rights are meaningless if fathers face career penalties. The government should introduce penalties for employers who discriminate against parents taking leave, and require large employers to publish data on parental leave take-up by gender.

5. Cultural change: Laws alone will not shift deeply ingrained norms. Public campaigns, role modelling by senior leaders, and education about the benefits of shared parenting are needed to normalise fathers taking extended leave.

The bottom line

From April 2024, UK fathers can take 6 weeks of paternity leave (up from 2 weeks), with the first 2 weeks paid at 90% of earnings. Shared Parental Leave has been reformed with 90% pay for the first 12 weeks (up from statutory rate) and simpler rules, aiming to increase take-up from 2% to 25% of eligible fathers. The reforms will benefit 400,000 fathers per year and aim to reduce the motherhood penalty (women with children earn 33% less than women without). However, the UK still lags behind Sweden (16 months at 80%), Germany (14 months at 67%), and Iceland (12 months at 80%). Campaigners call for ring-fenced leave for fathers, six months at 90% pay, and rights for self-employed parents. The economic case is strong: extending paternity leave to six months would cost £2.5 billion but generate £3 billion in net benefits from higher maternal employment, reduced welfare spending, and productivity gains.