This Motherhood Penalty: Mothers Forfeit Over £65k in Earnings by Time Their Child Reaches Five Years Old
Government figures indicate that mothers face a substantial loss of around £65,600 in earnings by the point their first child turns five years old, demonstrating the so-called “motherhood price” that jeopardizes their financial security.
Substantial and Enduring Earnings Decline
Mothers in the UK undergo a “substantial and enduring reduction” in their earnings after having children, as they become less likely to remain in paid employment, according to findings.
The study found that mothers’ typical each month pay had dropped by 42%, or over £1,000 each month, 60 months following the birth of their first baby, compared with their pay 12 months prior to the birth.
Total Financial Impact Across Several Children
It equates to a loss of £65,618 across a five-year period, based on the analysis, which tracked earnings data from 2014 through 2022.
On average, there is an additional loss of around £26,300 after the birth of a second child, and then a further over £32,400 after the arrival of a third child.
Mothers are being “punished for caring, marginalized at their jobs, and assumed to just bear the financial burden.”
“And, the more children you have, the steeper the fall. This isn’t a gradual decline - it’s a economic freefall leading to financial damage of more than £100,000 for a woman of 3 kids.”
Catastrophic Effect on Living Standards
Experts described the reduction in income as “severe for women’s living standards.”
“Income is independence, and depriving mothers of that freedom because they became parents is absolutely unacceptable.”
Statistics reflect the unfair reality for mothers in the workforce, with calls for parental leave policies to be brought into the modern era.
“Tackling the maternal price requires bringing family leave rules into the 21st century, making sure all parents and partners get ample compensated time off when they become parents – we should adequately accommodate parenting together with employment, not in spite of it.”
Current Parental Leave Rules
Shared family leave was introduced in recent years, enabling parents to share up to 50 weeks of leave, and up to 37 weeks of earnings following the birth or adoption of a baby.
But, usage has remained minimal.
Under current rules, mothers’ leave is paid at ninety percent of a mother’s typical weekly income for the first six weeks, then drops to the lesser of either £187.18 a per week or 90% of the woman’s average salary for over seven months.
New fathers can take two weeks’ paid time off at a rate of either £187.18 a week or ninety percent of typical weekly pay, whichever one is less.
Government Review and Early Years Support
The government has promised positive measures from making adaptable schedules the standard, to enhanced protections for expectant mothers and immediate paternity rights.
However with nursery support for kids from nine months plus only just rolling out and nurseries in certain regions finding it hard to meet need, there’s still a long way to go before women are on an equal footing.
In September, working parents who have an income below £100k a year became qualified for 30 hours of government-funded childcare a per week during school terms for kids aged nine months to four years.
The roll-out coincides with the early care industry encounters staffing and funding difficulties.
A survey found that 94% of nurseries were expected to raise their rates for ineligible households.