This Motherhood Penalty: Mothers Lose £65,618 in Pay by Age Their Baby Reaches Five Years Old
Government data show that mothers face a staggering reduction of £65,618 in pay by the time their first baby turns five years old, demonstrating the termed “maternal penalty” that jeopardizes their economic stability.
Significant and Enduring Pay Reduction
Women in England experience a “considerable and prolonged reduction” in their income after giving birth to a child, as they are less inclined to remain in paid employment, according to analysis.
The study revealed that mothers’ average each month pay had dropped by forty-two percent, or over £1,000 each month, 60 months after the birth of their eldest child, relative to their pay one year prior to the child’s arrival.
Total Financial Impact Across Multiple Kids
This translates to a forfeiture of over £65,600 across a five-year period, based on the study, which followed pay data from 2014 through 2022.
On average, there is an extra reduction of £26,317 following the birth of a second child, and then a further £32,456 following the arrival of a third child.
Women are getting “punished for caring, sidelined at work, and expected to just absorb the expense.”
“And, the more children you have, the deeper the decline. This isn’t a gradual drop - it’s a financial nosedive resulting in economic loss of more than £100,000 for a mother of three kids.”
Severe Effect on Living Standards
Commentators labeled the reduction in earnings as “catastrophic for mothers’ quality of life.”
“Income is independence, and depriving women of that independence because they chose to become parents is absolutely outrageous.”
The figures mirror the unfair reality for mothers in the workforce, with calls for family leave rules to be updated into the 21st century.
“Solving the maternal penalty demands updating family leave rules into the 21st century, making sure all mothers and partners get ample compensated time off when they become parents – we should adequately accommodate parenthood together with employment, not in opposition to it.”
Existing Family Leave Rules
Joint family leave was introduced in 2014, permitting couples to share up to 50 weeks of leave, and up to 37 weeks of pay following the birth or adopting of a child.
However, usage has remained minimal.
Under existing regulations, mothers’ leave is paid at 90% of a woman’s average each week pay for the first six weeks, then falls to the lesser of either around £187 a week or 90% of the woman’s typical salary for 33 weeks.
Expectant fathers can take two weeks’ compensated leave at a rate of either around £187 a week or 90% of typical each week earnings, whichever is lowest.
Government Review and Early Years Support
Authorities has pledged favorable measures from establishing adaptable schedules the standard, to stronger safeguards for expectant mothers and immediate fathers’ leave.
However with childcare funding for kids aged nine months old plus just now rolling out and nurseries in some areas struggling to meet need, there’s still a considerable distance to go before women are on an level playing field.
In September, working parents who have an income below £100k a year were qualified for thirty 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 sector faces recruitment and financial difficulties.
A survey found that ninety-four percent of nurseries were expected to increase their rates for non-eligible families.
