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Full review of parental leave welcomed by Usdaw - as Ministers say the current system is ‘not working’

Retail trade union Usdaw has welcomed the Government today launching a review of parental leave and pay. The union agrees with Ministers who say the current system is “not working” for young families. Business Secretary Jonathan Reynolds said the Government will investigate the whole system for supporting new parents to take time off work when they have a baby, including maternity leave, paternity leave and shared arrangements.

01 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, with the Business Secretary pointing to “eight different types of parental leave”.

Paddy Lillis – Usdaw general secretary says: “We welcome Labour’s review of the current parental leave system and agree that it is not working. While Usdaw has a strong track record of negotiating improved rights for working parents and carers, our scope is limited by the current statutory framework of parental leave which is failing millions of working parents. It needs replacing with a system that reflects the reality of 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 fairly paid. 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

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 the Government today launching a review of parental leave and pay. The union agrees with Ministers who say the current system is “not working” for young families. Business Secretary Jonathan Reynolds said the Government will investigate the whole system for supporting new parents to take time off work when they have a baby, including maternity leave, paternity leave and shared arrangements.