Sharing the load: Costs and benefits of parental leave reform
Think tank: Institute for Policy Research
Author(s): Dr Joanna Clifton-Sprigg; Dr Alistair Hunt; Tiffany Choeung; Ciaran Hay
October 13, 2026
This report from UK think tank the Institute for Policy Research discusses what a redesigned parental leave system might look like.
The report discusses what a redesigned parental leave system might look like. Rather than focusing on individual elements of the system in isolation, the report argues that the government should look at maternity, paternity and shared leave together. It assesses the potential costs and benefits of a package of reforms that would improve leave provision for mothers and fathers, expand access to shared leave and extend support to self-employed parents.
The package combines 18 weeks of maternity leave paid at 90% of average weekly earnings, six weeks of non-transferable paternity leave at 90%, 21 weeks of paid shared leave, 13 weeks of unpaid shared leave, day-one access to paid leave and equivalent provision for self-employed parents. Such an approach could deliver benefits through improved parental wellbeing and higher numbers of mothers in the workforce.
Assuming average take-up, the model produces a £10.1 billion net social gain when life-satisfaction effects are valued over ten years. As a result, policymakers should consider a wider range of outcomes when evaluating reform. Alongside direct financial costs, factors such as parental wellbeing, family outcomes and labour market effects, while often more difficult to measure, can be significant, and are important for understanding the full impact of leave policies.
