🔗 Share this article

Government data reveal that mothers experience a staggering loss of around £65,600 in income by the point their first baby reaches five, exposing the so-called “maternal penalty” that risks their economic stability.

Significant and Enduring Pay Decline

Women in England undergo a “significant and long-lasting reduction” in their income after having children, as they become less inclined to remain in the workforce, per findings.

The study revealed that women’s typical each month earnings had fallen by 42%, or over £1,000 monthly, five years after the birth of their eldest baby, versus their earnings 12 months prior to the birth.

Cumulative Financial Impact For Several Children

This equates to a forfeiture of over £65,600 across a five-year period, based on the research, which monitored pay information from 2014 through 2022.

On average, there is an further loss of £26,317 following the arrival of a second baby, and then a additional over £32,400 following the arrival of a third baby.

Women are getting “penalized for caring, marginalized at their jobs, and expected to just bear the cost.”

“And, the more children you have, the steeper the decline. It’s not a gentle drop - it is a financial freefall causing economic loss of over £100,000 for a mother of three children.”

Severe Impact on Living Standards

Commentators labeled the decline in earnings as “severe for women’s well-being.”

“Money is freedom, and depriving women of that independence because they became mothers is nothing short of scandalous.”

Statistics show the unjust reality for employed women, with calls for parental leave policies to be updated into the modern era.

“Tackling the maternal price needs bringing parental leave policies into the 21st century, making sure both parents and fathers get ample compensated leave when they start as parents – we should properly support parenthood together with employment, not in opposition to it.”

Current Family Leave Policies

Joint parental leave was introduced in recent years, enabling couples to share up to almost a year of leave, and up to 37 weeks of earnings following the birth or adopting of a child.

Yet, uptake has stayed minimal.

Under existing regulations, mothers’ leave is compensated at 90% of a mother’s average weekly income for the first six weeks, then falls to the lowest of either £187.18 a per week or ninety percent of the mother’s typical pay for over seven months.

New fathers can take two weeks’ paid leave at a rate of either around £187 a week or ninety percent of average weekly pay, whichever is less.

Government Review and Early Years Support

Authorities has promised positive measures from establishing flexible working the standard, to stronger protections for expectant mothers and day-one paternity rights.

But with childcare funding for kids from nine months plus just now rolling out and childcare providers in some areas struggling to accommodate need, there’s yet a long way to go before women are on an equal footing.

In September, working parents who earn up to £100,000 a year were qualified for 30 hours of state-supported nursery care a week during term time for children aged nine months to four years old.

This initiative coincides with the early care industry faces staffing and funding challenges.

A survey revealed that 94% of childcare centers were expected to increase their rates for ineligible households.