Parental pay and leave for new parents to be reviewed - what support is currently available?

Starting a family is an exciting time, but it also brings questions about parental leave and financial support.

The government has announced a ‘landmark’ review of the parental leave system to help modernise and improve it for families.

Here’s what you need to know about the current situation and a list of the financial and childcare support available to new parents.

Why is the parental leave system being reviewed?

The current parental leave system in the UK has not been reformed in decades, despite big changes in working habits and family life. Ministers say the system is "really confusing”, with eight different types of leave and not very generous compared to other countries.

• One in three fathers do not take paternity leave.
• Shared parental leave, which lets parents share leave and pay, is rarely used.
• A recent committee of MPs called the UK’s parental leave system "one of the worst in the developed world", citing “fundamental flaws”.

What will the parental leave review cover?

The review will look at the full range of current and upcoming leave and pay entitlements, including:

• maternity leave and pay
• paternity leave and pay
• adoption leave and pay
• shared parental leave and pay
• parental bereavement leave and pay
• parental leave (unpaid)
• neonatal care leave and pay
• Maternity allowance
• a new employment right, currently under development – bereaved partner’s paternity leave (unpaid)

What does the current parental leave system look like?

Maternity leave and pay

• Up to 52 weeks off work for most new mums and birthing parents.
• Statutory maternity pay for up to 39 weeks:
• 90% of average weekly earnings for the first six weeks.
• Then £187.18 or 90% of earnings (whichever is lower) for the next 33 weeks.
• Not available if you are self-employed or earn less than £125 per week.

Paternity leave and pay

• Introduced in 2003, paternity leave allows most new fathers and second parents to take up to two weeks off.
• Pay is £187.18 per week or 90% of average earnings (whichever is lower).
• Available regardless of gender, after birth, surrogacy or adoption.
• Not available if you’re self-employed or earning less than £125 per week.

Shared parental leave and pay

• Shared parental leave was introduced in 2014.
• Parents can share up to 50 weeks of leave and up to 37 weeks of pay after a child’s birth or adoption.
• Very low uptake so far.

What financial and childcare support is available to new parents?

Financial help and childcare support are crucial, especially if you’re on a low income.

Here’s a guide to the main support options:

Financial help you can get

• Maternity allowance: up to £187.18 per week for 39 weeks if you don’t qualify for statutory maternity pay (for self-employed or short working history).
• Sure start maternity grant: One-off £500 payment for your first child to help with costs (may be more for multiples). You must be on certain benefits to qualify.
• Healthy start scheme: Pre-paid card to buy healthy food and baby formula, plus free vitamins. Offers £4.25 per week during pregnancy, £8.50 per week for babies under 1 and £4.25 for children aged 1 to 4 if you qualify.
• Child benefit: £26.05 per week for the first child, £17.25 for each additional child. You can apply after birth. High earners may face a charge.

Childcare Support

• Tax-free childcare scheme: government adds £2 for every £8 you pay towards childcare, up to £2,000 per child per year (£4,000 if your child is disabled).
• 30 hours free childcare: Available for 3–4-year-olds (and some 2-year-olds) if you meet income and work criteria.

Check eligibility and apply on the government website.

Local support and resources

Many local councils and charities offer additional help, such as:

• Welfare schemes to help with essentials like cots or appliances.
• Children’s centres and family hubs providing advice, parenting classes and support groups.
• Local grants or crisis funds for unexpected expenses or moving home.

Ask your midwife, health visitor, or local council about what’s available near you. They can also refer you directly to baby banks or hardship funds.

Reach out if you’re struggling

Pregnancy should be a happy time, but it can also bring a lot of stress, especially if you’re worried about money. If you’re falling behind on bills, struggling with debt, or just need help understanding your options, you don’t have to face it alone.

We can help you deal with debt, apply for benefits and manage your budget. Whether you need help now or you’re planning ahead, we’re here to support you.