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Usdaw welcomes the Minister’s commitment to better support working families

Retail trade union Usdaw has welcomed a Government commitment to better support working families and the economy, having launched a review of parental leave and pay. The Minister was answering a question from Connor Rand MP (Labour, Altrincham and Sale West) in the House of Commons as part of today’s Department of Business and Trade question time.

17 July 2025

0 min read

Currently, new fathers can take two weeks’ paid leave, at a rate of either £187.18 or 90% of average weekly earnings, whichever is lower. Maternity leave is paid at 90% of average weekly earnings for the first six weeks, and then whichever is lower of that 90% or £187.18 for the next 33 weeks. Ministers hope to increase the take-up of shared parental leave, which allows a couple to share up to 50 weeks of leave and 37 weeks of pay between them. They also hope to simplify the system for both parents and employers.

Connor Rand MP asked: “Improving our paternity leave offer would be good for parents, good for children and good for our economy. I recently organised an event with Labour colleagues, the Usdaw trade union and ‘The Dad Shift’, where we heard from Tesco about the benefits six weeks’ fully paid paternity had brought to their business. As part of the parental leave review, which I warmly welcome, will the Minister proactively reach out to businesses like Tesco who are leading the way on paternity leave?” 

Business Minister Justin Madders MP (Labour, Ellesmere Port and Bromborough) responded: “Through our landmark Employment Rights Bill, we are making paternity leave and unpaid parental leave day-one rights. This aligns them with maternity and adoption leave. But we are going further; we have launched the parental leave review, fulfilling our manifesto commitment. 

“The review will explore how the system can support working families and our modern economy. The review will assess the system against four key goals: supporting maternal health; boosting economic growth for increased labour market participation; enabling flexible balanced childcare choices; and ensuring the best start in life for our children. 

“This review that we are beginning will be evidence based; it will reflect and consider the views and experiences of those who engage with the parental leave and pay system. So, I encourage all businesses to contribute to the call for evidence which was launched earlier this month.”

Paddy Lillis – Usdaw general secretary says: “We thank Connor Rand for raising this issue and welcome Labour’s review of the current parental leave system. Usdaw has a strong track record of negotiating improved rights for working parents and carers, as illustrated with the paid leave we’ve secured with Tesco. However, our scope can be limited by the current statutory framework, which is failing millions of working parents.

“It needs replacing with a system that reflects the best practice already present within today’s labour market; supports all parents to make meaningful decisions about how they combine paid work with care; reduces pregnancy and maternity discrimination; promotes gender equality and closes the gender pay gap. 

“At the very least, pay and leave rights must be accessible to all regardless of employment status, available from day one and be fairly paid. Pay is crucial for low-income workers, who often cannot afford to take all of their current statutory entitlements. Usdaw looks forward to contributing to the review and we will continue to seek wider reforms, including improvements to childcare and flexible working.”

Notes for editors:

Usdaw (Union of Shop, Distributive and Allied Workers) is one of the fastest growing unions in the TUC and the UK's fifth biggest trade union with around 360,000 members. Most Usdaw members work in the retail sector, but the union also has many members in transport, distribution, food manufacturing, chemical industry and other trades www.usdaw.org.uk

Parental leave and pay review: call for evidence: https://www.gov.uk/government/calls-for-evidence/parental-leave-and-pay-review-call-for-evidence

For Usdaw press releases visit: www.usdaw.org.uk/news and you can follow us on Bluesky @usdawunion.bsky.social and Twitter/X @UsdawUnion

Summary

Retail trade union Usdaw has welcomed a Government commitment to better support working families and the economy, having launched a review of parental leave and pay. The Minister was answering a question from Connor Rand MP (Labour, Altrincham and Sale West) in the House of Commons as part of today’s Department of Business and Trade question time.