After years of piecemeal reform, the UK's parental leave and pay system is set for a comprehensive review. For employers, HR teams and employees, this is a significant and welcome development.
Since the introduction of maternity rights in 1975, the system has become increasingly complex. Over time, new entitlements such as paternity leave, parental leave, time off for dependants, adoption leave, shared parental leave, surrogacy rights, neonatal care leave and parental bereavement leave have been added. Each has its own rules, eligibility criteria and unique features, making it challenging for employers to create clear, accessible policies for employees to understand and for HR teams to administer.
Now, as part of its Plan to Make Work Pay, the Government has announced an 18-month review to modernise the system. The aim is to deliver a simpler, fairer and more flexible framework that better supports working families and employers.
What is in the scope of the review?
The review will cover all existing and forthcoming parental leave and pay entitlements. This includes changes already announced as part of the Employment Rights Bill, including:
- Making paternity and unpaid parental leave available from day one of employment (from April 2026).
- Extending bereavement leave to cover the death of a family member (from 2027).
- Strengthening protections against dismissal for pregnant employees and new mothers (from 2027).
- Enhancing the right to request flexible working from day one (from 2027).
What is the aim?
The review will evaluate the current system against four main objectives:
- Maternal health, supporting physical and mental wellbeing during and after pregnancy.
- Economic growth, helping parents remain in work and progress in their careers, while reducing the gender pay gap.
- Best start in life, ensuring families have the time and resources to support early childhood development.
- Childcare flexibility, enabling co-parenting and adapting to modern working patterns.
The review will also consider fairness for different family types and employment statuses, the impact on business and public finances, and wider social aims such as reducing child poverty and challenging gender stereotypes.
Next steps for employers
There is no immediate action required from employers at this stage. However, those who wish to contribute to the Government's call for evidence may do so by submitting their views before 25 August 2025.
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