Recommendation 22

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)