The Department for Work and Pensions (DWP) has faced growing pressure from campaign groups, charities, and MPs to align Statutory Maternity Pay (SMP) with the National Living Wage. Currently, the flat rate for maternity pay is less than half of what many working mothers would earn at the National Living Wage rate, sparking debates about the adequacy of the system. With ongoing calls for reform, questions are being raised about the government’s stance on parental leave and its potential future changes.
The current SMP system has been widely criticised for placing mothers in financial hardship during a critical period. A recent petition calling for change gathered over 100,000 signatures and was debated in Parliament last month. As the government launches a comprehensive review of parental leave and pay, it seems there may be a shift in policy, but the outcome remains uncertain.
The Inadequacy of Current Maternity Pay
Statutory Maternity Pay is a vital lifeline for new mothers, but its current structure has been labelled as “insufficient” by multiple organisations. According to charities like Maternity Action and Pregnant Then Screwed, the current system fails to reflect the financial demands of modern families. Eligible mothers receive 90% of their average weekly earnings for the first six weeks of maternity leave. For the remaining 33 weeks, they are paid a flat rate of £187.18 per week, which equates to less than half of the National Living Wage, currently £12.21 per hour.
Campaigners argue that this drop in income causes significant strain on many families, forcing mothers to return to work sooner than they wish. Charities describe the current maternity pay system as an “abomination” for failing to meet the basic financial needs of new parents. Many women, according to Rachel Grocott, CEO of Pregnant then Screwed, are being pushed back into the workplace much too soon, which undermines their ability to bond with their newborns during a crucial developmental period.
Government’s Response and Upcoming Review
In response to the ongoing criticism, the government has committed to reviewing the parental leave and pay system. Andrew Western, Parliamentary Under-Secretary of State for the DWP, confirmed that the government has initiated an 18-month review of parental leave and pay entitlements. This review, launched in July 2025, aims to assess how the system can be reformed to better meet the needs of modern families and align with current economic realities.
According to Western, all aspects of the current parental leave system will be examined to determine how it can be improved. The review is seen as an opportunity to reconsider how the policy could better support working parents, especially mothers, during an essential period in their lives. The ongoing review has been welcomed by many campaign groups, with Grocott expressing optimism about the possibility of change.
While no official details on potential reforms have been released, the debate surrounding the issue highlights a growing recognition of the need for a more sustainable and equitable system. As the review progresses, it is likely that further pressure from stakeholders will continue, pushing for a more substantial increase to SMP rates.
