The Motherhood Penalty: Women Forfeit £65,618 in Pay by Time First Baby Turns Five Years Old
Official statistics show that women suffer a significant reduction of £65,618 in pay by the time their first child reaches five, exposing the so-called “maternal price” that threatens their economic stability.
Significant and Enduring Pay Decline
Mothers in the UK experience a “substantial and enduring decline” in their pay after having a child, as they become less likely to stay in paid employment, as stated by research.
Analysis revealed that women’s average monthly income had decreased by 42%, or £1,051 per month, 60 months after the arrival of their first child, relative to their earnings one year prior to the birth.
Total Losses For Several Kids
It translates to a loss of £65,618 across five years, per the analysis, which tracked pay data from 2014 through 2022.
On average, there is an additional loss of £26,317 following the birth of a second child, and then a additional £32,456 following the arrival of a third baby.
Mothers are getting “punished for caring, sidelined at work, and expected to just bear the financial burden.”
“Moreover, the more kids you have, the deeper the decline. This isn’t a gradual decline - it is a financial freefall leading to financial damage of over £100,000 for a woman of 3 kids.”
Severe Impact on Quality of Life
Commentators labeled the reduction in pay as “devastating for women’s living standards.”
“Money is freedom, and stripping women of that freedom because they became parents is absolutely unacceptable.”
Data reflect the unjust situation for employed women, with demands for family leave rules to be updated into the 21st century.
“Addressing the maternal penalty demands updating family leave rules into the 21st century, ensuring all parents and fathers get ample compensated time off when they start as parents – we should adequately accommodate parenthood together with employment, not in spite of it.”
Existing Family Leave Rules
Joint family leave was introduced in 2014, allowing couples to split up to almost a year of leave, and up to 37 weeks of earnings after the arrival or adopting of a child.
However, uptake has stayed minimal.
According to current rules, maternity leave is paid at 90% of a woman’s typical each week pay for the initial six weeks, then decreases to the lesser of either around £187 a per week or ninety percent of the mother’s average pay for over seven months.
Expectant dads can take 14 days compensated leave at a rate of either £187.18 a week or ninety percent of average each week income, whichever one is less.
Official Review and Early Years Support
The government has promised positive steps from establishing flexible working the standard, to stronger safeguards for pregnant women and immediate fathers’ leave.
However with nursery support for children from nine months plus only just being introduced and childcare providers in certain regions finding it hard to accommodate need, there’s still a considerable distance to go before mothers are on an level playing field.
Recently, employed mothers and fathers who earn up to £100k a year became eligible for 30 hours of government-funded childcare a week during school terms for kids aged nine months to four years old.
The roll-out coincides with the childcare sector encounters staffing and financial difficulties.
Research revealed that 94% of childcare centers were expected to raise their fees for non-eligible households.