asked the Secretary of State for Employment if he will estimate the costs of abolishing the two-year qualifying period for maternity pay and reinstatement in the current financial year, and 1981–82.
No precise information is available on the number of women who do not qualify for statutory maternity rights. However, the recent Policy Studies Institute report, "Maternity rights—the experience of women", indicates that nearly 50 per cent. of working women do not qualify under the present provisions.On the assumption that the annual earnings of women who do not qualify for maternity pay is broadly equal to those that do, removal of the qualifying conditions would approximately double the present total annual rebate figure of £32 million. There is no direct cost associated with the right to reinstatement.
asked the Secretary of State for Employment if he will estimate the cost of increasing maternity pay from 90 per cent. to 100 per cent. of average earnings in 1980–81 and 1981–82.
Maternity pay is at present based on 90 per cent. of a week's pay less the amount of the flat-rate national insurance maternity allowance. I estimate that increasing the 90 per cent. to 100 per cent. in this calculation would increase public expenditure by nearly £6 million in a full year by reference to current earnings levels.