Government review of parental leave and pay

7 July 2025

The Government has launched a full review of the parental leave and pay system in order to consider how it could be improved to better support working families and adapt to the needs of the modern economy. The review will cover all types of parental leave and pay and is expected to run for 18 months. It will conclude with a roadmap for implementing potential reforms.

The Government review is part of its plan to Make Work Pay. It’s about modernising the system in addition to the changes which will be introduced in the Employment Rights Bill. The review will cover all types of parental leave and pay including maternity, paternity, adoption, shared parental leave and pay. The aim is to see how the system can work better both for parents and employers.

One of the stated key aims in the terms of reference is to expand the existing evidence base and understanding of the current regime, with an assessment being made of the strengths and weaknesses of the current system and by looking at international models. The review aims also to draw on stakeholder expertise.

Four objectives will be under consideration:

Maternal health.
Economic growth.
Giving the best start in life to babies and children.
Childcare.

The review aims to address how a fair system can be created for different types of parents with different kinds of employment status. There must be a balance between costs and benefits to businesses and the Government purse. Broader societal goals such as reducing child poverty and shifting social and gender norms around parental childcare will also be under consideration.

A call for evidence which closes on 25 August 2025 invites views and evidence on how well the current system achieves these objectives. You can find out more here.

The review is expected to run for 18 months and to conclude with a set of findings and a road map setting out next steps for potential reform.

This blog was written by Manuela de Castro, Senior Solicitor at didlaw.

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