Government Launches Landmark Review of Parental Leave and Pay

Alexandra White • July 29, 2025

The government began a thorough examination of the parental leave and compensation scheme in July.

The goal of this review is to update policies that many families claim are unclear and out of date.


With recommendations anticipated by January 2027, the review, which covers everything from maternity and paternity leave to shared parental and adoption leave, could set the stage for the largest upheaval of family rights in a generation.


The timing of this review coincides with increased scrutiny of the work-family balance. Even though the current system provides a variety of leave and pay options, many parents find it difficult to fully utilise and, for some, financially unfeasible. The implementation of Shared Parental Leave, brought into effect in 2015 to allow couples to share leave, has had a particularly low take-up. Most of the time, families simply can't afford to take it, or organising it is too difficult.


This new review doesn’t sit in isolation, either. It builds on the back of proposed reforms in the Employment Rights Bill (ERB) which includes measures like making paternity and unpaid parental leave day-one rights, extending protection during pregnancy and after return from maternity leave, and improving access to flexible working. These are all welcome and long overdue changes. But while the ERB focuses on adjusting the mechanics of leave, this wider review asks some deeper cultural and structural questions - ones that could completely reshape how leave is offered, funded and accessed in the future.


The review would like to ask some big questions.

  • Are the policies flexible enough for families?
  • Is the financial support sufficient, or does it leave parents with no alternative but to return to work sooner than they would like?
  • And how are our policies compared with other countries that have gone boldly to make parental leave more generous and inclusive?


The Government is also likely to consider making leave simpler and fairer for everyone. There is growing interest in seeing paternity leave extended and better remunerated, and others are seeking the system to be overhauled to offer a flexible universal parental leave system. 


Over the next 18 months, data will be gathered and families, employers and experts consulted. The recommendations are set to appear in early 2027. 


It will take some time, perhaps, but potentially this is the start of a radical shift in how we help parents through one of the toughest and most important times of their lives.