Affordability is key to UK's policy on shared parental leave

Britain's shared parental leave policy begins on Sunday with high hopes in the government it will have a significant effect on gender inequality in the workplace.

But the popularity of the new rights - which allow both parents to share up to 50 weeks of leave and 37 weeks of statutory pay after their baby arrives - will depend crucially on how many couples can afford it.

A survey of FTSE 100 employees by Linklaters found that 63 per cent were interested in taking up the new right, but the majority of this group said it would depend on whether they could expect extra pay from their employers on top of the flat statutory rate of £139.58 per week.

Many large employers offer enhanced maternity pay to mothers to top up the statutory rate, but so far only 15 to 20 per cent have decided to offer the same deal for shared parental leave, according to a number of employer surveys in recent weeks.

"The practical and financial aspects of sharing leave for a family, where the father is only entitled to statutory pay whilst on leave, remains unfeasible for many," said Fraser Younson, employment partner at law firm Squire Patton Boggs.

This has been the experience of other European countries that have introduced shared parental leave. In Sweden, Norway and Iceland, where new parents are paid 80 to 100 per cent of their usual incomes while on leave, between 85 and 90 per cent of fathers take up the rights. In France, where the pay is half the minimum wage, just 1 per cent of fathers do.

Naeema Choudry, a partner at law firm Eversheds, said employers had struggled to decide whether to offer enhanced pay, and many were still waiting to see what others would do.

"Funding parental leave will almost inevitably lead to a greater take-up than would otherwise be the case, and many employers are concerned about the costs," she said.

"On the other hand, those who are competing to recruit the best employees want to be viewed as an employer of choice. We are regularly asked what other organisations are doing about shared parental pay because no employers want to be perceived as lagging behind their competitors."

About 25 per cent of financial and accountancy companies are offering enhanced pay for shared parental leave, more than any other sector, according to a survey of employers by law firm Allen & Overy.

One of those is Citigroup. Carolanne Minashi, Europe, Middle East and Africa head of diversity at the bank, sees the policy as a good way to improve women's equality at work but also a "recognition that there is a different generation of parents coming into the workplace that expect equal responsibility for childcare".

The company researched policies in Scandinavia to understand the implications and interviewed employees who had recently become parents. So far, two fathers in the entire company have applied to take up six months leave, which will be on full pay. "I think it will gather momentum as employees watch the pioneers' progress," she said.

One of the fathers-to-be is Darren Parker, who works in the finance division. He believes shared leave will allow both parents to be present in the formative period. "If I didn't take this leave it would be something I would regret in years to come."

Employers in Nordic countries, where shared leave is the norm, said the policy was vital for gender equality in the workplace.

Thomas Hogebol, founder and chief executive of The North Alliance, a network of creative and advertising agencies from Sweden, Denmark and Norway, said it could take time for "policy to change behaviour". But he insisted that there would not be "equal pay if we don't have equal responsibilities".

Henrik Torstensson, chief executive of Lifesum, the Swedish digital health and fitness platform, with 35 employees, said: "Taking time off with your kids is normal from a cultural aspect. My assumption is that employees - male and female - will have kids. Previously companies might not have hired women of a certain age."

Sharing parental leave helped boost women's employment prospects, he said, adding that from an employer's point of view, planning was key. "With maternity and paternity leave you have time to plan things out. It's easier to plan for than departures. If you want to retain talent then you need to make it work."

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