Select committee: Women and Equalities Committee

Recommendation 32

8th Report - Female entrepreneurship Published 22 Oct 2025 Addressed to Government Equalities Office
Recommendation (the committee's words)
The Department for Work and Pensions should review funding for Universal Credit and reclassify Maternity Allowance so that it is not treated as “unearned income” for the purposes of Universal Credit, so that when self-employed women access it, their Universal Credit is not reduced. (Recommendation, Paragraph 128)

From: Women and Equalities Committee, 8th Report - Female entrepreneurship (HC 711), 22 October 2025

Government response

The government responded to the whole report on 27 January 2026 (deadline 22 December 2025).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The government welcomes the Committee's focus and cites existing initiatives, but does not adopt the call for a separate female entrepreneurship strategy, a dedicated Minister and Office, or a new Female Enterprise Investment Scheme.

  • On a separate strategy and dedicated Minister, the government states that women-led businesses "should be embedded in everyone's agenda" and integrated into mainstream policies, rather than "seen as distinct from the wider economy".
  • On a Female Enterprise Investment Scheme, it says a scheme with "targeted differential rates" would raise "complex design and compliance issues which would need to be examined carefully", and would need to be assessed against the fiscal context.
  • On mandatory venture capital reporting, it says the FCA does not request reporting from venture capital firms on deals, and that this recommendation "would not align" with the FCA's plans to streamline returns.
  • On parental leave, it says the Parental Leave and Pay review will run for around 18 months, and that decisions on reform or legislation "will depend on the findings of the review, ministerial priorities, and the wider fiscal context".

Read the government's response ↗ Report an error