Source · Select Committees · Women and Equalities Committee
Recommendation 22
22
Deferred
Adopt robust economic model for assessing costs and benefits of parental leave reforms
Recommendation
Producing much-needed substantial change to our paid parental leave system will require considerable financial investment. For example, the direct costs of extending and increasing paid leave for fathers and other parents to six weeks at 90% of average earnings are likely to be over £1 billion per year. The Government must, however, weigh these costs against the wider economic benefits. The model recently developed by the Centre for Progressive Policy for Joseph Rowntree Foundation demonstrates how this could be done. It projects a net economic benefit from this reform of £2.68 billion per annum around two years after full implementation. The Government must examine this model in detail with a view to adopting it or a similar approach to assessing the likely costs and benefits of necessary reforms. (Recommendation, Paragraph 121)
Government Response Summary
The government confirms engagement with the Joseph Rowntree Foundation and states that their economic model for extending paternity leave is being considered as part of the ongoing parental leave and pay review, promising a robust cost-benefit assessment for future policy options.
Government Response
Deferred
HM Government
Deferred
The government recognises the important contribution that organisations like the Joseph Rowntree Foundation (JRF) and other groups are making to the conversation around parental leave. Government officials have spoken to JRF and continue to work closely with them as we consider the future of parental leave policy. The proposal to extend paternity leave to six weeks, and the associated economic analysis, is being considered as part of the parental leave and pay review. The review has cost as a cross-cutting consideration, and we will consider how the parental leave and pay system can support economic opportunities to make the process surrounding parental leave easier for both businesses and parents. The government will produce a robust assessment of costs and benefits for any policy options that we take forward following the review.