Report

Costs and benefits of improved leave for fathers in the first year: Too good to ignore

This report from UK think tank the Institute for Policy Research recommends reforms to the UK’s current parental leave policies.

The policy brief, written by Dr Joanna Clifton-Sprigg, Dr Alistair Hunt, Lily Zelezetskii and James Bailey, evaluates a reform to UK paternity leave, and finds that expanding paternity leave to six weeks (taken flexibly in the first year of child’s life) at 90% of average weekly earnings and available at day one of employment could deliver £12.8 billion in annual net social benefits. Their cost-benefit analysis finds that better-paid, extended and flexible leave policy earmarked to fathers would yield substantial gains through increased maternal employment and improved parental wellbeing.

With approximately 75% of eligible fathers expected to take up such leave, the economic and social benefits are significant. In contrast, lower-paid options see substantially reduced take-up and impact. Beyond direct economic effects, increased paternal involvement is linked to better child development, greater family stability, and improved workplace satisfaction.

The researchers recommend the introduction of six weeks’ paternity leave, paid at 90% of average weekly earnings and available from day one of employment. A weekly earnings cap could help contain costs while maintaining strong uptake. This policy would serve as a crucial first step toward fairer, more effective parental leave, while supporting broader goals of gender equality and economic participation.