Rich poor divide continues through parental leave

Parents are being short changed when it comes to taking parental leave after the birth of a baby.

According to a new report released today, the current process is unfair to poorer families and especially anti-dad.

The claims are made by the independent think tank Reform, in their report “Productive Parents”.

The report recommends making maternity leave flatter, fairer and flexible, so that all working families receive £5,000 over six months, a move they say will not cost tax payers any more money.

Those who suffer the most in the current system are those in casual and low skilled jobs. Mothers earing £50,000 a year and taking six months leave received nearly £8,000 from the taxpayer. Mothers earning the minimum wage at £12,000 per year received just £4,500.

The report recommends making maternity pay into a flat rate “parental payment” of £5,000, payable monthly and shared between the mother and the father.

“Gimmick” programmes such as the health in pregnancy grant, the healthy start scheme and the employer supported childcare schemes that currently support low income parents should all be abolished to save £275 million per year.

Deputy Director of Reform, Elizabeth Truss said: “There is something wrong with a system when mothers on high incomes and gold-plated maternity leave also get most money from the taxpayer.”

Chief Economist of Reform, Patrick Nolan said: “Britain’s basic economic problem is low productivity and current family policy is a key reason for that.  More flexible arrangements will help skilled parents keep in touch with the workplace and aid pace to the economic recovery.”