This Maternal Penalty: Mothers Forfeit Over £65k in Earnings by Time First Child Reaches Five Years Old
Official statistics reveal that mothers suffer a substantial reduction of £65,618 in earnings by the point their eldest baby reaches five years old, highlighting the so-called “maternal price” that risks their economic stability.
Substantial and Enduring Pay Decline
Women in the UK face a “significant and prolonged reduction” in their earnings after having children, as they are less likely to remain in paid employment, as stated by findings.
The study found that women’s average each month pay had decreased by forty-two percent, or £1,051 per month, five years after the arrival of their first child, compared with their pay one year prior to the birth.
Cumulative Losses For Several Children
This equates to a forfeiture of over £65,600 over five years, per the study, which followed pay information from 2014 to 2022.
Typically, there is an extra reduction of around £26,300 following the arrival of a second child, and then a additional over £32,400 after the birth of a third baby.
Women are getting “penalized for caring, marginalized at their jobs, and assumed to just bear the financial burden.”
“Moreover, the more children you have, the greater the decline. It’s not a gradual decline - it’s a economic freefall leading to financial loss of more than £100,000 for a mother of three children.”
Severe Effect on Living Standards
Commentators described the reduction in earnings as “severe for mothers’ well-being.”
“Money is independence, and depriving mothers of that independence because they chose to become mothers is absolutely scandalous.”
Data show the unjust situation for mothers in the workforce, with calls for family leave rules to be updated into the modern era.
“Addressing the maternal price requires bringing family leave policies into the modern era, making sure both parents and partners get ample compensated leave when they become parents – we should properly accommodate parenting together with employment, not in spite of it.”
Current Parental Leave Rules
Joint family leave was introduced in 2014, allowing couples to share up to almost a year of time off, and up to 37 weeks of earnings after the birth or adoption of a child.
Yet, uptake has remained minimal.
Under existing rules, mothers’ leave is paid at 90% of a woman’s typical each week earnings for the initial one and a half months, then falls to the lesser of either around £187 a per week or ninety percent of the woman’s average pay for over seven months.
New fathers can take 14 days compensated time off at a amount of either around £187 a per week or 90% of average each week pay, whichever is less.
Government Review and Childcare Funding
The government has promised positive steps from making flexible working the default, to stronger protections for pregnant women and day-one paternity rights.
However with nursery support for children aged nine months old and older just now rolling out and childcare providers in certain regions struggling to meet need, there’s yet a long way to go before women are on an equal footing.
Recently, employed mothers and fathers who have an income below £100k a year were qualified for 30 hours of state-supported childcare a week during term time for children aged nine months to four years old.
The roll-out coincides with the early care industry encounters recruitment and funding difficulties.
A survey revealed that ninety-four percent of nurseries were expected to increase their fees for non-eligible households.