Clare Chappell, Partner here at Carbon specialising in Employment, give’s her view on the Parental Leave Review:

You’ve likely heard about the government’s “full review of our parental leave system”, launched on 1 July 2025 and expected to last 18 months. This internal government review, co-led by the Department for Business and Trade and the Department for Work and Pensions, acknowledges that our current system “needs further improvement”. It’s said to be a chance to “reset our approach and understanding”.

The review’s broad scope covers all existing and upcoming parental leave and pay entitlements, including maternity, paternity, adoption, and shared parental leave. One of its aims is to consider the needs of overlooked groups like kinship carers and self-employed parents. The core objectives given include supporting maternal health, boosting economic growth by keeping parents (especially women) in work, ensuring the “best start in life” for children, and enabling balanced childcare choices. The government is inviting views through roundtables and a call for evidence, closing on 25 August 2025.

However, many, including legal professionals, are sceptical. I, for one, see the proposed 18-month duration of the review as kicking the can down the road. It’s an awfully long time to wait for a review, and (looking at the glacial progress of the Employment Rights Bill as a comparison) we’re probably looking at another few years before legislation is finalised, passed, and actually comes into effect.

Here’s what parents and advocates really want to see changed:

• Better financial support: Current statutory maternity/paternity/adoption/shared parental pay is a fraction of the National Minimum Wage.
• Support for Self-Employed: Self-employed parents often get nothing – there is often no legal right to leave or pay.
• True Flexibility & End to Stigma: There’s a prevailing culture that is stuck in the old-fashioned 9-5 office working hours. That worked fine back when only one parent tended to work, and generally it was unmarried women who worked in offices (losing their jobs when they got married…). Employers who remain distrustful or against flexible working are already finding it more difficult to attract good candidates. Anecdotally, flexibility is often one of the first questions asked of recruiters.

As an aside here, it isn’t good for anyone if workplaces become divided between those that attract working parents and those that only attract non-parents, or parents who aren’t involved in childcare responsibilities. I’m not sure we should ever get to a working day that’s shorter than the school day, however, improved wraparound care availability, some WFH days, better transport, free parking as part of the remuneration package – all these are things that would make it easier for working parents, and none of them require a government review.

• Affordable Childcare: Recent skyrocketing nursery fees alongside the expansion of free childcare hours are once again skewing nursery availability and affordability for working parents. Nursery fees that are up there or even more than their mortgage is a reality for many working families. That fact alone bears repeating for the benefit of those at the upper reaches of management who had the benefit of buying decades ago when the salary: property value ratio was somewhat different.
• Ending the “Career Shredder” (as Pregnant Then Screwed names it): Annually, 74,000 women are forced out of the workplace for maternity reasons, as I see all too frequently amongst my individual clients.

Some positive changes are already underway via the Employment Rights Bill: paternity and unpaid parental leave will become “day one” rights, and redundancy protections for new mothers were enhanced back in 2024.

However, the review itself doesn’t promise to deliver on the key pay and flexibility issues. The fear, I think, is that some only look at the immediate return on investment – does adding flexibility improve profits. I don’t think it’s as simple as that. It’s recruitment fees from having to replace that working mum you blocked from returning to her role because you wouldn’t allow any flex. It’s the reputation that grows from the churn rate of staff. And so on.

My call to action for managers: don’t wait for legislation! You can make an immediate impact:

• Prioritise flexible working: Make it the default, including genuinely part-time and term-time roles.
• Review parental benefits: Enhance your company’s parental leave pay beyond the statutory minimum.
• Address the stigma: Challenge perceptions that parents are “less worthy” or “uncommitted”.
• Support wellbeing: Explore childcare solutions and foster a culture where parents don’t need to pretend not to be a parent when at work, and pretend not to work when being a parent.

There’s plenty of evidence out there that supports the contention that building a supportive culture for working parents attracts and retains talent, ensuring your business thrives.

I’m not here to lay out a wish list of what needs changing – it wouldn’t fit in a blog! I simply think that the system needs an overhaul.

Britons are having fewer babies, and one huge cause of that is the cost of living. The squeezed middle are already managing rising childcare costs and supporting ageing parents, whilst working all hours in a sticky job market where wages haven’t been rising in line with the cost of living for a generation. Commissions in sales roles are down and many are keeping their heads down rather than looking to change job, because mediocre income in a known work environment might be better than what’s out there.

The generations who haven’t yet had children are watching this struggle, and it seems to me they’re thinking, out of the Big Life Things at play here that I can control, I’m going to choose not to have children.

Something’s got to give. I don’t know what, but something has to change. I hope this review will lead to substantive change that rebalances things and makes becoming a parent something filled with joy and optimism for the future, not a financially driven decision.

If you have an employment issue or would like to find out more about Clare, please visit her partner page by clicking here.