Statutory Maternity and Paternity Pay: What the UK Government Has Said About Increases (and Why It Remains Low)
Every year, thousands of UK parents struggle to make ends meet on Statutory Maternity Pay (SMP) or Statutory Paternity Pay (SPP), which will be £187.18 per week as of April 2025.
As the cost of living rises, many have called for these rates to be increased to better reflect the financial realities of modern parenting. But what exactly has the UK government said about this issue? And why does statutory pay remain relatively low compared to average earnings?
Here, we explore the current state of play, government responses, and the justifications behind maintaining the current rates.
Current Rates and Context
As of April 2025, the weekly rate of SMP and SPP will be £187.18 (rising annually from £184.03 from 2024, in line with inflation based on the Consumer Prices Index (CPI). These rates apply after the initial six weeks of maternity pay, during which eligible employees receive 90% of their average weekly earnings.
Despite modest annual increases, the real-term value of statutory pay lags significantly behind the average UK wage, leading to calls from campaigners, charities, and trade unions for reform.
What the Government Has Said
1. Budget Constraints and Fiscal Responsibility
The government has consistently argued that significant increases to statutory pay would place a large financial burden on public finances and businesses. Since employers can claim back 92% of SMP/SPP (or 103% for small businesses), the Treasury ultimately foots much of the bill.
In parliamentary debates, ministers have stated that while supporting families is a priority, any substantial increase to statutory pay must be balanced with economic affordability, especially during times of economic uncertainty.
2. Annual Increases Reflect Inflation
Government spokespeople have highlighted that statutory pay rises annually in line with inflation metrics, particularly the CPI. The Department for Work and Pensions (DWP) asserts that this method ensures pay remains consistent in real terms, although critics argue that the rises do not keep pace with the rising cost of essentials like energy, housing, and childcare.
3. Support Through Other Schemes
The government often points to other forms of support for parents, including:
Child Benefit: £96/month for first child
Tax-Free Childcare: 25% off eligible childcare costs
Universal Credit: Additional support for low-income families
Officials argue that these schemes complement statutory pay, providing a broader safety net for families.
4. Employer Flexibility Encouraged
Rather than increasing statutory rates, the government encourages employers to offer enhanced parental pay voluntarily. Many public sector roles and larger corporations do offer better terms, but access to this depends entirely on where a parent works, creating inequality across the workforce.
Why the Justification Falls Short for Many
Real Wages vs Statutory Pay
With average UK take-home pay at £2,000 – £2,400/month, the £812/month from SMP/SPP represents a 60% – 67% income drop. For many, this is unsustainable, especially with childcare, housing, and energy costs rising faster than inflation.
The Living Wage Comparison
As of 2024, the National Living Wage equates to £460/week for a full-time worker, more than double the weekly SMP/SPP rate. Campaigners argue that no parent should have to survive on half the living wage while caring for a newborn.
Calls for Reform
Organisations like Maternity Action, Pregnant Then Screwed, and the Trades Union Congress (TUC) have urged the government to:
Increase statutory pay to match the living wage
Extend the period of 90% earnings pay beyond six weeks
Provide targeted support for low-income parents and single mothers
Petitions and parliamentary questions continue to press the government, but as of early 2024, no major policy changes have been proposed.
Final Thoughts
While the government maintains that statutory maternity and paternity pay is fair and sustainable, many parents and advocacy groups argue that it falls far short of what families need in today’s economy. Until meaningful increases are made, parents will continue to face financial strain during what should be a cherished time of bonding and recovery.
With cost-of-living pressures mounting, the question remains: how long can the UK government justify keeping parental pay at such low levels, and what are the long-term consequences for families and the wider economy?
Sources:
Gov.uk Statutory Pay Rates
Office for National Statistics (2024)
Department for Work and Pensions (DWP) Statements
Maternity Action, TUC, Pregnant Then Screwed Campaign Materials