The facts around UK maternity pay after Badenoch suggests it's 'excessive

By Westminster Producer Elisa Menendez

The issue of maternity pay in the UK has been thrown into the spotlight after Conservative leadership hopeful Kemi Badenoch appeared to suggest it was currently "excessive".

Despite later insisting she does believe in maternity pay, her comments have sparked backlash from opponents and campaigners, with the latter saying many mothers are forced to cut their leave early because statutory pay isn't enough anymore.

What is the controversy surrounding maternity pay?

During an interview with Times Radio on Sunday, Shadow Communities Secretary Ms Badenoch described statutory maternity pay as “a function of tax”, adding: “Tax comes from people who are working – we’re taking from one group of people and giving to another. This, in my view, is excessive.”

Ms Badenoch argued that businesses are being forced to close due to statutory maternity pay obligations because "the burden of regulation is too high” - despite companies being able to recoup most of the payments from HMRC.

Put to her that she is saying maternity pay is “excessive”, Ms Badenoch said: “I think it’s gone too far, too far the other way, in terms of general business regulation, we need to allow businesses, especially small businesses, to make more of their own decisions.

“The exact amount of maternity pay, in my view, is neither here nor there. We need to make sure that we are creating an environment where people can work and people can have more freedom to make their individual decisions.”

Following fierce backlash, she later claimed she was misinterpreted and she does support maternity pay.

When asked what she would do to boost falling birth rates, she told an event at the Conservative Party Conference on Monday that people are "scared to have families" and “we should find a way to make life easier for those who are starting families”.

“Some people feel that they can’t afford children, I often think that too many people are worried about the money more than they need to be," she added, as she listed concerns around birth trauma, childcare and housing as compounding factors.

'Too many people are worried about the money more than they need to be'

What is statutory maternity pay and how long do you need to be at a company to qualify?

Statutory maternity pay is paid for up to 39 weeks (approximately nine months) and usually starts at the beginning of the agreed maternity leave period.

For the first six weeks, new mums receive 90% of their average weekly earnings before tax. After that, they receive £184.03 or 90% of average weekly earnings - whichever is lower - for the next 33 weeks.

The employee must also earn on average at least £123 per week to qualify. Tax and National Insurance are deducted from the payments.

An employee must have worked with their employer continuously for a minimum of 26 weeks (approximately six months) and no less than 15 weeks before their due date. This means the latest an employee would be able to claim statutory maternity pay after joining a company would be 15 weeks away from giving birth (roughly five months pregnant).

Charities Maternity Action and Pregnant Then Screwed said their respective surveys found new mums are being forced to go back to the workplace earlier, with the latter saying just one in four are able to take their full leave entitlement.

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Maternity Action said “woefully inadequate levels” of statutory maternity pay are even driving women to use food banks for the first time during their pregnancy and maternity leave.

“The £184.03 weekly statutory maternity pay and maternity allowance are currently worth less than half (46%) the £400.40 that someone on the higher rate national minimum wage would be paid for working a 35-hour week, and less than a third of women’s average full-time earnings," it added.

"A majority told our recent survey that they end up taking on debt to get through maternity leave and end up returning early to work from maternity leave rather than bonding with their new babies. Some told us this was a discouragement to having more than one child."

How does the UK's offering compare with other countries?

Campaigners and critics - including Badenoch's Tory leadership rival Robert Jenrick - point out that although the UK's length of paid leave is longer than many of its international counterparts, the pay is much lower.

According to the Organisation for Economic Co-operation and Development (OECD), 19 weeks is the average amount of paid leave offered among OECD countries. But countries such as France, Germany, Austria, Turkey, Poland, Croatia and others offer full pay for between 14-30 weeks.

Norway, for example, allows up to 59 weeks paid maternity leave with new mums receiving 80% of their salary, or 49 weeks at full pay.

Do some companies offer more?

Yes. It is at the discretion of an individual employer if they offer employees a greater maternity or paternity package and many do.

The Chartered Institute of Personnel and Development (CIPD) found that 18% of the 2,000 surveyed between June and July 2022 offer between four and 13 weeks of enhanced maternity pay at or near the full rate of pay.

However, according to Maternity Action the number of employers offering better terms has been falling in recent years. It says just over 10% of women benefit from additional maternity pay from their employers.How much does it cost businesses?

Employers can reclaim 92% of employees' statutory maternity and paternity pay. Small businesses that qualify for small employers' relief can reclaim 103%.

Pointing this out, Joeli Brearley, founder of Pregnant Then Screwed, said: “It is absolute nonsense to suggest that businesses are closing because of statutory maternity pay."

She said Badenoch's comments were "yet another example of dog-whistle politics", adding: “Statutory maternity pay is absolutely vital. Most families need two incomes to survive, and so without SMP, women would be forced to return to work almost immediately after giving birth."

According to the Resolution Foundation, falling birth rates also means a reduction to the cost of statutory maternity pay, which is actually helping lower employers' social contributions.

What about statutory paternity pay?

The weekly rate of paternity pay is the same as maternity - £184.03 or 90% of your average weekly earnings, whichever is lower.

However, new dads can legally only take a maximum of two weeks' paternity leave. They can't go on leave before the birth and the end date must be within 52 weeks of the baby being born.

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