We look at the implications of shared parental leave which allows fathers to take equal responsibility for childcare.
New paternity rules have come into force meaning parents are now legally entitled to share time off work during their baby’s first year.
Under the changes which came into effect on 3 April, fathers will get the right to additional leave and pay. The rules will also cover adoption.
To qualify, the father must have been with his employer for at least 26 weeks, and the time must be taken off specifically to care for the child.
What will this mean for families?
Additional paternity leave will allow fathers to take up to 26 weeks’ leave to care for the newborn, on top of the two weeks of ordinary paternity leave.
Until now, new fathers have only been entitled to two weeks’ paternity leave within eight weeks of the birth of the child, paid at the statutory rate of £124.88 a week; this statutory rate has just been raised to £128, in line with inflation.
From now on, if the mother returns to work after 20 weeks and stops claiming maternity pay, the father can take over the mother’s leave on statutory pay for the remaining 26 weeks.
The move will mean both parents can potentially each take six months off work, enabling them to share childcare responsibilities in the first year.
Some fathers may not take advantage
But while the changes should mean fathers get to spend more time with their children, this new additional leave will either be paid at the statutory level or unpaid, depending on how soon the mother returns to work.
If, for example, the mother returns to work at 20 weeks, the father will get paternity pay at the statutory level of £128 for the next 19 weeks, and will then be entitled to a further seven weeks’ unpaid leave.
The problem is, with household finances already under pressure in the current challenging economic climate, the average family may not be in a position to afford to take advantage of the changes.
Crucially, in families where the father is the main breadwinner, the reduced income is likely to present a problem.
There are also worries that some fathers may not take advantage because they are too worried about being judged at work, concerned about the impact on their career or even frightened of losing their jobs.
Opposition
The changes have met with opposition from employers’ groups, which warn that the new regulations will hit businesses hard.
The Federation of Small Businesses said the move would add to the administrative burden on small firms, while a survey of 1,300 businesses by the British Chambers of Commerce (BCC) ahead of the change showed more than half believed giving extra paternity leave to fathers would be detrimental to the business.
Going forward
The change in legislation was first proposed by the Labour government, but earlier this year, deputy prime minister Nick Clegg confirmed the new process would remain in place.
Looking to the future, the government is looking into creating a fully flexible system of shared parental leave in 2015. This will be welcome news to those fathers who cannot afford to take paternity leave at the current rate because of the loss of income.
Be financially prepared
In the meantime, with money one of the major obstacles preventing fathers from being more “hands-on” it is vital that families are financially prepared for both paternity and maternity leave.
This involves calculating how much you will need to survive, saving money in readiness, cutting down on household bills and unnecessary bills, and by keeping a tight lid on the household budget.
Visit the government's website for more information on additional paternity leave.
