Private Sector Falls Behind Public Sector in Maternity Leave Pay
The study indicates that 65% of employees in the public sector are women, compared to 44% in the private sector. However, there are generally more women employed in the private sector: 10.96 million women work in the private sector, whereas the public sector employs 4.98 million women. This means that approximately 2.5 million women in the private sector are entitled only to the statutory minimum maternity pay, while in the public sector, this number is around 150,000.
Brightmine suggests that the disparity between the private and public sectors may stem from differences in their approaches to attracting and retaining employees. It emphasizes that the benefits offered by the public sector prominently feature elements that particularly support parents. Furthermore, it notes that the higher unionization rates and collective bargaining rights of public sector employees also contribute to this disparity.
It is suggested that receiving only the statutory maternity pay could adversely affect employee productivity. Working Families, a nonprofit organization, states that this situation may lead employees to return to work earlier than they desire due to financial pressures. Returning to work prematurely can create emotional conflicts between work and home responsibilities, resulting in fatigue and sleep disturbances for employees. This, in turn, may reduce their overall productivity.
Working Families emphasizes that employers need to improve parental leave pay and support. They argue that parental leave should be more accessible to all new parents and recommend that employers engage directly with employee networks or focus groups to better understand the needs of their staff.
Brightmine's research reveals a 10% increase in the proportion of employers offering maternity pay since 2021. In 2024, 26% of employers are meeting the minimum legal requirements, compared to 36% in 2021.
It is suggested that an increase in maternity pay by more employers in the private sector could enhance employee loyalty. Experts emphasize that while improving maternity pay is crucial for staff retention in the public sector, the private sector should also adopt this practice to attract and retain female employees. Currently, the legal maternity pay stands at 90% of the employee's salary for the first six weeks, after which it decreases to £184.03 per week for the following 33 weeks.
Experts suggest that small and medium-sized enterprises may believe they cannot afford to increase maternity pay given the current economic conditions. However, they point out that retaining experienced staff and reducing recruitment costs could ultimately prove to be a more economical strategy.