This Motherhood Price: Women Forfeit £65,618 in Pay by Time First Child Reaches Five Years Old
Government data reveal that women face a substantial reduction of around £65,600 in earnings by the time their first baby turns five, exposing the so-called “maternal price” that jeopardizes their economic stability.
Substantial and Enduring Earnings Reduction
Mothers in England undergo a “significant and enduring decline” in their income after giving birth to a child, as they are less likely to remain in paid employment, according to analysis.
Research revealed that mothers’ typical each month income had fallen by 42%, or £1,051 per month, five years after the arrival of their eldest child, versus their pay one year prior to the birth.
Cumulative Financial Impact For Several Children
This translates to a loss of over £65,600 over five years, according to the study, which monitored pay information from 2014 to 2022.
On average, there is an further reduction of around £26,300 after the birth of a second baby, and then a subsequent £32,456 following the birth of a third child.
Women are being “punished for parenting, sidelined at work, and expected to just bear the cost.”
“Moreover, the more kids you have, the steeper the fall. It’s not a gentle drop - it is a economic freefall leading to financial damage of more than £100,000 for a woman of three children.”
Severe Impact on Quality of Life
Commentators labeled the decline in earnings as “devastating for mothers’ well-being.”
“Income is independence, and depriving women of that independence because they became parents is absolutely scandalous.”
Statistics reflect the unfair situation for mothers in the workforce, with demands for parental leave policies to be updated into the modern era.
“Tackling the motherhood penalty demands updating family leave policies into the modern era, making sure both mothers and fathers get ample paid time off when they start as parents – we should properly support parenthood alongside work, not in spite of it.”
Existing Family Leave Rules
Joint parental leave was established in recent years, permitting couples to split up to almost a year of leave, and up to over eight months of earnings after the arrival or adopting of a child.
But, participation has remained low.
According to current regulations, mothers’ leave is paid at 90% of a mother’s typical weekly earnings for the initial one and a half months, then decreases to the lowest of either £187.18 a week or 90% of the mother’s average salary for over seven months.
Expectant dads can receive 14 days paid time off at a amount of either around £187 a week or ninety percent of average each week pay, whichever is less.
Official Review and Early Years Support
Authorities has promised favorable measures from establishing adaptable schedules the default, to enhanced safeguards for expectant mothers and day-one paternity rights.
Yet with childcare funding for kids from nine months old and older only just being introduced and nurseries in some areas struggling to meet need, there’s yet a long way to go before women are on an level playing field.
Recently, working parents who earn up to £100,000 a year were qualified for thirty hours of state-supported nursery care a per week during term time for kids from nine months to four years.
The roll-out comes as the early care sector faces recruitment and financial difficulties.
Research revealed that ninety-four percent of childcare centers were likely to raise their prices for ineligible households.