This Maternal Cost: Women Forfeit £65,618 in Pay by Age Their Child Reaches Five
Official figures indicate that mothers suffer a substantial loss of around £65,600 in pay by the time their eldest baby reaches five, exposing the so-called “maternal penalty” that threatens their financial security.
Significant and Enduring Pay Decline
Women in England face a “significant and prolonged drop” in their earnings after giving birth to children, as they are less inclined to remain in the workforce, according to analysis.
Analysis showed that mothers’ typical each month earnings had fallen by forty-two percent, or £1,051 monthly, five years following the arrival of their eldest child, relative to their earnings 12 months prior to the birth.
Total Financial Impact Across Several Kids
This amounts to a forfeiture of £65,618 over five years, per the analysis, which tracked earnings data from 2014 to 2022.
On average, there is an extra reduction of £26,317 following the birth of a second child, and then a subsequent £32,456 following the arrival of a third baby.
Women are getting “penalized for parenting, sidelined at work, and expected to just absorb the cost.”
“And, the more children you have, the deeper the decline. This isn’t a gradual drop - it’s a economic freefall causing economic loss of over £100,000 for a mother of three kids.”
Severe Impact on Living Standards
Analysts described the decline in earnings as “devastating for mothers’ living standards.”
“Income is independence, and stripping mothers of that independence because they chose to become mothers is nothing short of scandalous.”
The figures mirror the unjust reality for mothers in the workforce, with demands for parental leave policies to be updated into the modern era.
“Addressing the motherhood price demands updating parental leave policies into the modern era, making sure both mothers and fathers get sufficient paid time off when they become caregivers – we should adequately accommodate parenthood alongside work, not in spite of it.”
Existing Family Leave Rules
Shared family leave was introduced in recent years, enabling couples to split up to almost a year of time off, and up to over eight months of earnings after the arrival or adopting of a child.
Yet, usage has stayed minimal.
Under current regulations, maternity leave is paid at 90% of a woman’s typical each week earnings for the initial one and a half months, then decreases to the lowest of either £187.18 a per week or ninety percent of the woman’s typical pay for over seven months.
Expectant fathers can receive 14 days paid time off at a amount of either around £187 a week or 90% of typical each week pay, whichever is lowest.
Official Examination and Childcare Funding
Authorities has pledged positive measures from establishing adaptable schedules the default, to stronger protections for expectant mothers and immediate paternity rights.
Yet with childcare funding for children aged nine months old plus only just being introduced and nurseries in some areas finding it hard to meet need, there’s still a long way to go before mothers are on an level playing field.
In September, working parents who have an income below £100,000 a year were eligible for 30 hours of state-supported nursery care a per week during school terms for kids from nine months old to four years.
The roll-out coincides with the early care sector faces recruitment and financial difficulties.
A survey revealed that 94% of nurseries were likely to raise their prices for ineligible households.