Sarah Olney

Sarah Olney

Liberal Democrat — Richmond Park

Speaking in the House of Commons on 27 October 2025

Debate

Statutory Maternity and Paternity Pay

Contribution

I thank the hon. Gentleman for his intervention. The Liberal Democrats support measures that work to strengthen employment rights. We welcome aspects of the Employment Rights Bill, such as boosting statutory sick pay, strengthening support for whistleblowers and increasing support for carers, all of which move us in the right direction. However, we remain concerned about the specific way in which many of the measures are to be implemented. We must ensure that the legislation strikes the right balance for employees and for business, particularly small and medium-sized enterprises. I have spoken with businesses in my constituency that tell me that they are being left in limbo by the vague framing of the Bill, which leaves crucial detail to secondary legislation and Government reviews. That prevents long-term planning, and I am disappointed that the Government did not support the Liberal Democrat amendments, which would have created more certainty for businesses. New measures to support workers must go hand in hand with much-needed reforms to support our small businesses and bring down their costs. We know that the Government inherited a mess. We know that the cause of the mess is the legacy of reckless economic mismanagement by the previous Government, whose record is a dispiriting picture of low growth, high interest rates and a record fall in living standards. But it is disappointing that the current Government have taken decisions that have compounded many of the challenges for communities, businesses and families, while presiding over very tight public finances and a stagnant economy. That is why we urge the Government to put in place a range of measures that will bring down business costs, unleash the power of our SMEs and power economic growth—measures such as scrapping the unfair national insurance rise, fixing the broken business rates system, bringing down the cost of energy by decoupling electricity and gas prices, and finally repairing the economic damage caused by the previous Government’s shambolic Brexit deal by cutting red tape and negotiating a new bespoke UK-EU customs union. Those actions could breathe new life into our economy and our small businesses and would go a long way towards facilitating improvements to parental leave and pay. In our 2024 general election manifesto, we called for statutory maternity and shared parental pay to rise to £350 a week, for paternity pay to increase to 90% of earnings with a cap for high earners, and for the introduction of an extra “use it or lose it” month for fathers and partners, paid at 90% of earnings, again with a cap for high earners. Those policies would benefit not only families, but businesses and the economy, by encouraging workforce participation and making it easier for people to advance their career while starting a family. We hope that the Government will look closely at those proposals, while introducing a robust plan to cut business costs, boost growth and empower our SMEs. More broadly, I urge them to look into the prevalent inequality in caring responsibility. What steps are they taking to support millions of family and kinship carers who have no paid leave at all? Will they commission a similar review into provision for unpaid carers and make carer’s leave paid?

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