Parental leave reform needs to consider small and medium businesses

By Helen Norman, Associate Professor at Leeds University Business School, University of Leeds
Bianca Stumbitz, Research Fellow, Middlesex University
Emma Banister, Senior Lecturer, University of Manchester

The UK government announced a landmark review of parental leave in July 2025. This responds to widespread concern about failings within the current policy framework.

Much of the discussion centres on calls for longer, better-paid paternity leave. The statutory entitlement is just two weeks paid at a low flat rate (£187.18 per week in 2025) or 90% of average weekly earnings, whichever is lower.

Eligible fathers can opt for shared parental leave of up to 50 weeks of leave and up to 37 weeks…

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