Source · Select Committees · Treasury Committee
Recommendation 9
9
Rejected
Paragraph: 75
Maternity leave and childcare responsibilities remain significant barriers for women in finance.
Conclusion
It is clear that maternity remains a significant barrier to women in financial services, with too many women leaving the industry after having children. We have heard that increased availability and take-up of paternity leave and shared parental leave by men can have a significant impact on reducing this barrier by fostering a more equal sharing of childcare responsibilities. Increased transparency around the maternity, paternity and parental leave offered by firms would also incentivise improvement in this area and allow both men and women to take account of these policies when moving roles, without having to ask for them during job interviews.
Government Response Summary
HM Treasury notes it previously consulted on requiring large employers to publish family-friendly policies but concluded against a 'one-size-fits-all' approach, effectively rejecting mandatory transparency. The PRA and FCA acknowledge the importance of parental leave but defer broader transparency questions to the government.
Paragraph Reference:
75
Government Response
Rejected
HM Government
Rejected
**HM Treasury Response:** The Government recognises that fathers and partners play a crucial role and the Shared Parental Leave and Pay scheme gives working families much more choice and flexibility. The number of parents taking Shared Parental Pay has doubled between 2015–16 and 2021–22. Parental leave and pay entitlements are a floor not a ceiling, and the Government encourages employers to go further where possible. Regarding transparency, we consulted on requiring large employers to publish family friendly policies. However, on balance, the Government concluded that imposing a one-size-fits-all approach runs the risk of tying the hands of employers and employees. **PRA Response:** We agree with the Committee that firms’ policies on parental leave and flexible working could help firms improve diversity and inclusion. We also note the changes to Flexible Working Act 2023 and the Carers’ Leave Act 2023 which came into force 6 April 2024. In developing our consultation proposals, we focused on the outcomes that we expect firms to deliver rather than specifying how firms should look to make improvements, allowing firms to choose the most effective interventions. We will support industry and Government where a regulatory view is needed. **FCA Response:** We identified inclusive parental leave policies as an action likely to be effective in advancing diversity. We will continue to encourage firms to link their plans to an understanding of their needs and to monitor effectiveness. We will support industry and Government where a regulatory view is needed on such initiatives. However, efforts to encourage equalisation of parental leave and transparency are questions with wider implications than solely for financial services, and may be more appropriate for consideration by Government in the first instance.