New data from the Office for National Statistics (ONS) has revealed a concerning financial trend for mothers in the UK, particularly those who gave birth between 2014 and 2022. The figures highlight the growing issue of the Mum Tax, where women experience a significant drop in earnings following childbirth.
On average, monthly salaries decrease by a substantial percentage, leaving many mothers facing a long-term financial burden. This Mum Tax continues to impact their income and career progression, underlining the need for systemic changes to address this ongoing inequality.
The Birmingham Mail recently reported that this drop in income has long-term consequences, affecting financial stability and career prospects. For many mothers, the data highlights a growing challenge that extends beyond short-term impacts, potentially influencing long-term economic security, pension savings, and overall gender equality in the workplace.
The Financial Impact of Motherhood: A 42% Drop in Earnings
According to the ONS data, the financial impact on women’s earnings is felt most acutely in the first year after childbirth. Mums can lose as much as £1,553 per month in the year following the birth of their first child.
Even after a second child, the monthly loss is substantial at ÂŁ965, and after a third child, it still remains significant at ÂŁ665. This sharp decrease in income leaves many mothers struggling to balance their careers and their financial commitments.
The ONS figures also reveal that the earnings decline persists long after the initial years of motherhood. Even five years after the birth of their first child, mothers continue to earn ÂŁ948 to ÂŁ1,051 less per month on average. This prolonged financial impact highlights the difficulties mothers face in regaining their earning potential after taking time off or reducing their hours to care for their children.
The “Mum Tax” and Its Long-Term Effects on Gender Equality
Kelly Parsons, the head of pension propositions at Broadstone, has referred to this earnings loss as the “mum tax,” which she describes as a financial straightjacket that continues to tighten years after childbirth. According to Parsons, losing more than £65,000 in just five years has serious long-term implications for gender pay equality, pension savings, and even broader economic growth.
If we want to close the gender pay gap – Parsons said,
we must move beyond acknowledging the motherhood penalty and start designing policies that dismantle it. This includes more affordable childcare, flexible working arrangements, and support systems that ensure women don’t pay the price of parenthood with their financial security.
Parsons emphasizes that the current system is not just a personal issue but a structural one that demands urgent reform.
The Toll on Mothers: A Financial Freefall
Rachel Grocott from the campaign group Pregnant Then Screwed highlighted the severe financial consequences mothers face, pointing out that the ONS data confirms what many mothers have known for years: the moment you have children, your pay nosedives.
Grocott points out that mothers experience a 42% drop in salary in the five years following their first child. This is not a gradual decline but a financial freefall, with a mother of three children potentially losing more than ÂŁ100,000 over the course of her career.
If men experienced this kind of penalty for becoming parents, we’d have fixed it years ago – Grocott said.
Instead, women are punished for caring, sidelined at work, and expected to just absorb the cost. Is it any wonder that women are second-guessing having kids today?
The financial burden of parenthood has become so steep that having children is increasingly seen as a luxury, not a choice accessible to all.
Addressing the Barriers: How Employers and Policies Can Help
The financial challenges faced by mothers are not just about individual choices but also about systemic issues in the workplace. Sophie Catto, joint managing director of AllBright Everywoman, explained that the cost of childcare remains one of the largest barriers for women returning to work.
However, she also believes that many solutions are surprisingly simple. Employers can make a significant difference by offering benefits such as pre-tax childcare schemes or subsidies, which would help women re-enter the workforce without the crippling financial burden of childcare costs.
Moreover, Catto emphasized the importance of flexible working arrangements.
Too often, women don’t receive the support they need when returning to work after having children – she said.
Employers that offer part-time options or the possibility to work from home can ease the transition for mothers, allowing them to better juggle their professional and personal responsibilities.
