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EU 20-week maternity leave proposals too costly and regressive for business

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Business Minister Edward Davey will attend a meeting of the EU Employment Council (EPSCO) today to lobby against  proposals put forward by MEPs in October. The Government is concerned that a move to 20 weeks of maternity leave at full pay, as proposed by the European Parliament, would impose considerable and unacceptable additional costs on many Member States at a time when economies across the EU can least afford it. Ministers also believe that the proposals put forward are socially regressive.

In advance of the meeting Mr Davey said: "The proposals put forward by MEPs would be extremely costly to business and also to the public purse. They are also socially regressive – the greatest benefits would be obtained by those earning the most - and the rigid model being proposed would make it hard for countries to develop systems of shared parental leave which would offer better support to working parents.

"I will be lobbying against these costly and regressive proposals today and making our case to Member States – I know that many of them already share our concerns.

"Minimum standards across Europe are important, but countries also need the flexibility to put in place arrangements that work for them in their own individual circumstances.

"We are absolutely committed to creating the best possible family-friendly environment in the UK, but the solutions on the table today are not the best way to help."

It is estimated that the proposals put forward by the European Parliament would cost the UK more than £2 billion per year.

The UK is committed to introducing a new system of shared parental leave and extending the right to request flexible working to all employees. The Government will be consulting shortly on this subject with stakeholders and interested parties.

Currently in the UK, the standard rate of maternity pay is £124.88 per week. This means women on an annual salary of £10,000pa receive 69% of salary as their total maternity pay during the period of paid leave. On a salary of £30,000pa women receive 32% of salary and at £60,000pa receive 23%. Under the proposals being considered in the European Parliament, a woman earning £10,000pa would only get 20% more maternity pay, whereas a woman earning £60,000pa would receive 146% more.

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Comments

what a ridiculous idea

The natural effect of this will be to discourage employers from accepting young, female staff - no matter how illegal this is...

But at least it may help older people traditionally overlooked by employers to find work!