Official statistics indicate that women experience a substantial reduction of around £65,600 in pay by the point their first child reaches five years old, highlighting the so-called “motherhood price” that threatens their economic stability.
Substantial and Long-Lasting Earnings Reduction
Mothers in England undergo a “considerable and long-lasting decline” in their earnings following having children, as they become less likely to stay in the workforce, as stated by analysis.
Research found that women’s typical monthly earnings had dropped by 42%, or over £1,000 per month, five years after the birth of their eldest child, compared with their earnings one year prior to the birth.
Total Losses Across Several Children
It amounts to a loss of over £65,600 across five years, per the research, which tracked earnings information from 2014 through 2022.
On average, there is an further loss of £26,317 after the arrival of a second baby, and then a additional over £32,400 after the birth of a third baby.
Women are getting “penalized for caring, sidelined at their jobs, and expected to just absorb the cost.”
“And, the more children you have, the steeper the drop. This isn’t a gradual decline - it is a financial freefall resulting in economic damage of more than £100,000 for a woman of three children.”
Catastrophic Effect on Quality of Life
Experts described the drop in income as “severe for women’s quality of life.”
“Money is independence, and stripping women of that freedom because they became parents is nothing short of outrageous.”
The figures show the unjust reality for employed women, with calls for parental leave rules to be brought into the 21st century.
“Solving the maternal penalty requires bringing parental leave policies into the modern era, ensuring all parents and partners get sufficient compensated leave when they start as parents – we should properly support parenthood alongside work, not in spite of it.”
Current Parental Leave Rules
Joint family leave was established in recent years, enabling parents to split up to almost a year of leave, and up to 37 weeks of pay after the birth or adopting of a child.
Yet, uptake has remained minimal.
According to existing rules, maternity leave is paid at 90% of a mother’s average weekly earnings for the first one and a half months, then drops to the lowest of either £187.18 a per week or ninety percent of the mother’s typical salary for 33 weeks.
Expectant fathers can take two weeks’ paid leave at a amount of either £187.18 a week or 90% of typical weekly earnings, whichever one is lowest.
Government Review and Early Years Support
The government has pledged positive steps from making flexible working the standard, to stronger protections for expectant mothers and immediate paternity rights.
However with nursery support for kids from nine months plus only just being introduced and childcare providers in some areas finding it hard to meet demand, there’s yet a considerable distance to go before women are on an equal footing.
Recently, employed mothers and fathers who earn up to £100,000 a annually were eligible for 30 hours of government-funded nursery care a week during term time for children from nine months to four years.
The roll-out comes as the childcare sector faces recruitment and funding difficulties.
Research found that 94% of nurseries were expected to raise their rates for non-eligible families.
