Government announces review of parental leave and pay

The government has launched a ‘landmark’ review of parental leave and pay, promising to overhaul the current system to better support working families.

The review, which aims to modernise and simplify maternity, paternity and shared parental leave, represents the latest step in Labour’s ‘Plan to Make Work Pay’.

While there are changes proposed to the current family leave system under the Employment Rights Bill, which we reported on here, it’s considered that further improvement is still needed to reflect the needs of modern working families.

The government has not yet given details of the proposed reform of parental leave and pay, as this will be guided by the review and its findings.

Instead, the government has set out several objectives which the current system will be measured against, with a particular focus on:

• Fairness and equality
• Cost
• Social considerations such as child poverty and paternal childcare.

It’s intended that the review will not only consider how current entitlements can be improved, but also the support that will be available for working families that are not eligible for leave and pay under the existing regime – those that are self-employed, for example.

The government has stated that there will be a call for evidence and period of consultation during which they will seek views from a variety of interested parties, including groups that represent parents and families, trade unions and employers.

The review is expected to run for a period of 18 months from 1 July 2025.

How will the reforms affect schools?

Most schools will already be preparing for the upcoming changes that are due to come into force soon under the Employment Rights Bill. These changes include the introduction of a day one right to paternity and parental leave, which appears to be the first step – albeit a small one – toward strengthening family-friendly rights.

The review of parental leave and pay entitlement represents further development in this area – although subsequent reform is unlikely to happen any time soon, with the review period expected to end in early 2027. We would not, therefore, expect that there will be any further significant changes until at least Autumn 2027.

As such, there are no proactive steps that schools should take in light of this announcement other than to keep up to date with its progress.

While further change may seem a daunting prospect, a review of the current family leave system may be beneficial, especially given the complications that arise in relation to shared parental leave.

Of course, it’s now commonplace for term-time staff to seek to maximise their time off by structuring periods of shared parental leave, with their return to work taking place during school holidays, which can cause practical difficulties for schools. It is hoped that, by recognising the complexity of this area, the review will assist both with ensuring that working families are properly supported, but also that a simpler system is put in place to address the practical problems that arise for employers – particularly schools.