Reforming maternity pay

While it is widely accepted that the costs of family breakdown are significant, there is less agreement on policy options to support families. Pete Hoskin set out arguments against a simplistic subsidy approach earlier today. Putting together ideas that work is made even harder by the catastrophic state of the government’s books. New policies should provide real value for money and be (at least) revenue neutral.

In our latest report, Reform identified a set of cost-effective reforms to one area of support for new families – maternity and paternity pay and leave – which is currently underperforming. This system of support receives surprisingly little attention, although it currently costs taxpayers around £2 billion every year.

The report finds that Britain has one of the most mother-centric leave policies in the developed world. Fathers are cut out and, as the CSJ reports, fathers’ absence from family life can harm children’s emotional and intellectual development.