The ‘motherhood penalty’: what it means for many mums’ finances

As we approach Mother’s Day, it’s a time to celebrate mums and motherly figures everywhere. But it’s also an important moment to talk about an issue that affects many families long after the flowers and cards are gone, the motherhood penalty.

For many women, having children can have a lasting impact on their career and finances. And if you’re a mum, this is something you may already have experienced yourself.

What’s the motherhood penalty?

The motherhood penalty refers to the long-term loss in earnings and employment opportunities many women experience after having children.

Figures from the Office for National Statistics (ONS) show just how hefty this impact can be. Using anonymised NHS, HMRC and census data from 2014 to 2022, the study found that mothers experience a dramatic and lasting drop in income after having children.

Five years after the birth of a first child, mothers’ monthly earnings are on average 42% lower than they were before childbirth, a reduction of around £1,051 per month.

Over time, this adds up to a big loss in income:

• £65,618 lost after a first child
• an additional £26,317 after a second child
• an additional £32,456 after a third child

For many families, this isn’t just a short-term dip in income, it can affect long-term financial security.

Money Wellness’ own data shows many single mums seek debt advice only after their finances worsen, most often following contact from creditors or bailiffs (36%), a job loss or reduced income (14%), difficulty affording essentials (13%), or unexpected expenses (12%).

Why do mums lose earnings?

There are several reasons why mothers’ earnings fall after having children.

Part-time work

One of the biggest factors is reduced working hours. Many mums choose, or feel forced, to work part-time so they can care for their children. While part-time work can offer flexibility, it often comes with lower pay and fewer opportunities for career progression.

Missing out on career progression

Maternity leave can also affect career growth. Time away from work may mean missing out on promotions, pay rises or professional opportunities.

Childcare costs

Childcare costs are another major challenge. For some families, childcare is so expensive that reducing working hours, or leaving work altogether, becomes the only practical option.

The ONS research also found that the likelihood of being in paid employment drops after childbirth:

• employment falls by up to 15% after a first child
• and by 10.5% after a second or third child

Even when mums stay in work, their earnings tend to remain lower for at least five years after having children.

Over time, this contributes to a 43% gender pension gap, meaning many women reach retirement with less pension savings than men.

Financial pressure on mums

The financial impact of the motherhood penalty can be felt in day-to-day life.

A YouGov poll for the Women’s Budget Group in 2025, which surveyed 4,476 adults, found that many mothers are struggling financially.

More than 1 in 4 mothers (28%) say they often or constantly worry about whether they can afford to meet their children’s needs. In comparison, 18% of fathers reported the same concern.

The research also found:

• 25% of fathers said they were never worried about affording their children’s needs in the past six months, compared with just 16% of mothers.

When asked what would help improve their financial situation the most, parents highlighted several key issues:

• Lower energy costs were the top priority for both mothers (65%) and fathers (63%).
• Changes to benefits, such as increasing child benefit or adjusting the benefit cap, were the second most important for mothers. 29% of mothers said this would make the biggest difference to their finances, compared with 22% of fathers.
• Free school meals were slightly more likely to be prioritised by mothers (22%) than fathers (18%).
• Affordable childcare was also important, with 26% of mothers saying it would improve their finances compared with 23% of fathers.

Support for single parents

If you’re raising children on your own, the financial pressure can be even greater.

It’s worth checking what financial help and support you may be entitled to. There are various benefits, grants and schemes designed to help with the costs of raising children.

Understanding what’s available could make a meaningful difference to your household budget.