The Maternal Cost: Mothers Lose Over £65k in Pay by Time Their Baby Turns Five
Official statistics show that women experience a substantial loss of around £65,600 in income by the time their first child turns five years old, exposing the so-called “maternal penalty” that jeopardizes their financial security.
Substantial and Enduring Earnings Reduction
Women in England experience a “significant and long-lasting drop” in their income after having a child, as they become less inclined to stay in the workforce, per analysis.
Analysis found that mothers’ typical monthly earnings had dropped by 42%, or £1,051 monthly, five years following the arrival of their eldest baby, versus their earnings 12 months before the birth.
Cumulative Financial Impact For Several Children
It translates to a loss of over £65,600 across a five-year period, per the study, which monitored pay data from 2014 to 2022.
On average, there is an additional reduction of around £26,300 following the birth of a second child, and then a additional £32,456 after the birth of a third child.
Mothers are getting “penalized for caring, marginalized at work, and expected to just absorb the expense.”
“And, the more children you have, the deeper the drop. This isn’t a gradual drop - it’s a financial nosedive causing economic damage of more than £100,000 for a mother of 3 children.”
Catastrophic Effect on Quality of Life
Analysts described the drop in income as “catastrophic for women’s quality of life.”
“Income is freedom, and depriving mothers of that freedom because they chose to become parents is nothing short of unacceptable.”
Statistics reflect the unjust situation for employed women, with calls for parental leave policies to be updated into the 21st century.
“Tackling the motherhood penalty requires updating family leave policies into the 21st century, ensuring all mothers and fathers get ample compensated leave when they start as caregivers – we should adequately accommodate parenthood together with work, not in opposition to it.”
Current Family Leave Rules
Shared family leave was introduced in 2014, permitting parents to split up to almost a year of leave, and up to over eight months of pay after the arrival or adoption of a baby.
However, uptake has stayed low.
Under current rules, maternity leave is compensated at 90% of a woman’s typical each week income for the first one and a half months, then decreases to the lesser of either £187.18 a per week or ninety percent of the woman’s typical salary for 33 weeks.
Expectant fathers can receive two weeks’ paid leave at a rate of either around £187 a week or 90% of average weekly pay, whichever one is less.
Government Review and Childcare Support
The government has pledged favorable steps from making adaptable schedules the default, to enhanced protections for pregnant women and immediate paternity rights.
However with childcare funding for children from nine months plus just now rolling out and nurseries in certain regions struggling to accommodate demand, there’s yet a long way to go before women are on an equal footing.
Recently, working parents who have an income below £100,000 a year became eligible for 30 hours of government-funded nursery care a per week during term time for children from nine months to four years old.
The roll-out comes as the early care industry encounters recruitment and financial difficulties.
Research found that 94% of nurseries were likely to raise their rates for non-eligible families.
