Skip to main content

Paternity Pay

Volume 454: debated on Monday 11 December 2006

To ask the Secretary of State for Trade and Industry what the cost of statutory paternity pay was in each year since 2003-04; and if he will estimate the cost in each year from 2006-07 to 2009-10. (107865)

The 2002 Statutory Paternity Pay Regulatory Impact Assessment (RIA) estimated the annual amount of statutory paternity pay reclaimable from the Exchequer at around £57 million. This assumed 70 per cent. of the total number eligible to receive statutory paid paternity leave would take it up.

The Maternity and Paternity Rights and Benefits Survey 2005 found around 80 per cent. of the 415,000 eligible fathers surveyed had used at least some of their statutory entitlement, suggesting a higher take-up rate than estimated in the RIA. Although the take-up has been higher than originally estimated, not all fathers take their full entitlement to two weeks paid paternity leave. Therefore we anticipate that the costs of statutory paternity pay are around the level presented in the RIA.