August 01, 2011
A report published this week by think-tank Demos showed that only one in ten working men would use the extended paternity leave provisions brought in by the coalition earlier this year. The provisions allow fathers to take up to a maximum of six months leave if the mother returns early. The report polled some 1,500 men and also found that only half take the two weeks statutory leave they are entitled to. Dan Leighton, author of the report, said: “as it stands, parental leave is expensive for the employee, the employer and the state. A carer’s account would prepare parents and firms for children, allowing them to be better parents and better employees.”
The account would work like a pension and is paid into on an opt-out basis. It would be tax-free and include matched contributions by the employer. Anyone who contributes and does not end up having children would have their account added to their pension. The recommendation comes as the report, entitled Reinventing the workplace, found that average waged fathers who take six months' leave stand to lose a huge proportion of their earnings.
A further study of 500 employers found that nine out of 10 offered some form of flexible working. Four out of five flexible working requests were approved by employers, falling to one in four at some smaller firms. Director of Demos, Kitty Ussher said: "It's common to think of small business as the most flexible but the research shows that it's the largest companies leading the way."
