The UK birth rate has declined to the lowest levels in over a decade, while the average age of parents has hit a record high. This carries future implications for employment and the UK economy.
This has led some to consider the key factors that are causing younger generations to choose not to have children, or to have them later in life. What steps do government and businesses need to implement to support this new outlook?
Recent data by charity and awareness group Pregnant Then Screwed has shone a light on one of the areas that may be causing fewer couples to consider having children – UK paternity law. They found that only 29 percent of fathers could access enhanced paternity leave, with just over half of fathers taking two weeks or less away from work.
With the vast majority of working mothers taking statutory maternity leave, and only 10 percent receiving occupational maternity leave (leave paid for by the employer), many young adults are feeling the financial strain of raising a family.
What’s happening to the UK birth rate?
Some UK politicians, most recently MP Miriam Cates, have highlighted the shift in birth rates and the age of new parents over the last decade. Now at their lowest since 2002, when they sat at a rate of 596,000, the most recent UK birth statistics reported 600,000 births. To put these figures into context, the post-war baby boom in 1920 saw 957,000 births, while baby boomers born in 1964 were one of 875,000 births that year.
These comparisons are significant. In 1964, the average age of a mother during childbirth was 27.3 in England and Wales. This is quite a bit younger than more recent data, which reveals the average age of mothers during childbirth as 30.9.
This is reflective of a trend across many sectors, where younger people are reaching the so-called ‘traditional’ milestones of adulthood later than previous generations. The generational age gap between first-time buyers is getting wider, stalling wage growth since 2008 continues to worsen and the cost of living crisis continues to affect the savings of young adults.
What are the current UK paternity laws?
The UK has the least generous paternity laws in Europe, observes Lisa Branker, Head of Employment and HR at Beecham Peacock (employment law specialists). Branker outlines the key aspects to remember when it comes to paternity leave requests.
“All fathers in the UK are eligible for statutory paternity pay, which currently sits at £184.03 or 90 percent of the employee’s average weekly earnings, depending on which is lower. Paternity pay is subject to tax and NI deductions,” Branker explains. “If you’re unsure, employers can calculate exactly how much paternity an employee will receive through the government’s maternity and paternity calculator. It’s a brilliant resource for businesses.”
“Fathers can take one to two weeks’ leave. If it’s two weeks leave, this can be taken together or separately. This doesn’t change if the employee is having multiple children, such as twins,” she continues. “Once a business has been informed of a paternity leave request, the start date of the leave must be the actual date of the birth. Leave must finish within 52 weeks of the birth, or due date if the baby arrives earlier than expected.”
For adopting fathers, paternity leave is available but there are different stipulations to consider.
“For an adopting father to take paternity leave, the employee must have been continuously employed by the business for at least 26 weeks up to the end of any day in the qualifying week, also known as the week, they were matched with a child,” says Branker. “If they are adopting from overseas, the employee must still have been employed for at least 26 weeks, but the qualifying week is the week that the child enters the UK, or from when the employee wants the pay or leave to start.
“For full eligibility, the father must be classed as an employee and earn an average of £123 gross over an eight-week relevant period. They must also give the employer the correct notice and take time off to look after the child.”
Why does paternity leave matter?
According to MP Miriam Cates, “The economic consequences of this shift are mind-blowing.”
New data analysis from the Centre for Progressive Policy (CPC) has found that countries with more than six weeks of paid paternity leave have a smaller gender wage gap (by 4 percent) and a smaller labour force participation gap (by 3.7 percent) than other countries. Closing these gaps by the same percentage in all authorities would increase the UK’s economic output by £23 billion.
There is also a human element to this issue. Taking time off work to raise a child causes stress for families who receive a lower rate of leave. New research from MetLife has found that one in five parents fear taking time off work to look after their children. Additionally, Maternity Action found that money was the biggest concern for parents about having a child, with 71% citing household income as a cause of stress.
How better paternity leave can support your business?
Research has shown that stronger paternity compensation can be a significant driving factor in making job offers more competitive.
Gen Z and Millennial workers are far more likely than other generations to leave a job for another post that has stronger paternity rights. 52 percent of Gen Z and 55 percent of millennials say parental leave would be a consideration in finding new employment.
“When employees feel tired, rundown and stressed, they are more likely to take sick leave,” says Branker. “One in five working adults take time off due to stress in the UK, so finding ways to mitigate this can lead to higher retention of work.”
How can businesses implement a fair paternity policy?
“Make sure your employees are aware of all their options,” says Branker. “One policy many are unaware of is Shared Parental Leave and Pay. This allows employees to share their parental leave, splitting the time and pay into blocks in order to equally share the responsibility of raising a child.
“A couple can split up to 50 weeks of leave and 37 weeks of pay, but they do have to take less maternity or adoption leave and pay to do so.”
Businesses can also stand out from the competition by offering enhanced paternity pay, making their workplace more desirable in a competitive working landscape.
