Charles Kennedy, Leader of the Liberal Democrats has announced a generous package for parents if his party scoop the top prize at the next election.
The Liberal Democrat ‘Maternity Income Guarantee’ will mean all working mothers will be paid at least £4,420 for the 26 weeks of statutory maternity leave when they are starting a family. This equates to £170 per week, the equivalent of the gross income of the minimum wage for a 35 hour week.
Under current regulations, mothers receive 90% of the employee’s average weekly earnings for the first six weeks of statutory maternity pay followed by the remaining twenty weeks paid at the SMP standard rate (currently £102.80 per week), or 90% of the woman’s average weekly earnings if lower.
According to the Liberal Democrats, around 200,000 working women have their first baby every year. The party claim that mothers would be ‘significantly’ better off under them.
Kennedy said: “Today we put in place a new policy which is an important part of the childcare jigsaw – helping working mothers in the first months after the birth. We are proposing a radical reform of maternity pay provision for the first born child: a reform which will particularly benefit women on low-incomes.
“Our Maternity Income Guarantee forms a solid base for working women to plan their first baby’s first months. It will help to prevent this most exciting of times for new parents being marred by the financial worry that can so often accompany it.”
Kennedy referred to the Maternity Income Guarantee as a ‘reward’ which would give working women a ‘working wage for the first 6 months of their first child’s life.’
Last year, the government announced that maternity leave and pay would be extended to nine months and would be transferable between mums and dads.
The Tories have also revealed their position on childcare; key to the proposals is the option for both parents to partake in the leave entitlements giving fathers the unprecedented opportunity to share up to a year’s leave with partners.
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