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Official statistics reveal that women experience a staggering loss of around £65,600 in pay by the time their first child reaches five years old, demonstrating the so-called “motherhood price” that risks their financial security.

Substantial and Long-Lasting Pay Reduction

Mothers in the UK undergo a “substantial and enduring drop” in their pay after having children, as they are less likely to remain in a job, per research.

The study revealed that women’s average monthly earnings had decreased by forty-two percent, or over £1,000 per month, five years following the arrival of their eldest baby, compared with their pay 12 months before the birth.

Cumulative Financial Impact For Several Kids

This translates to a loss of £65,618 over a five-year period, based on the analysis, which tracked earnings information from 2014 through 2022.

Typically, there is an further loss of £26,317 after the birth of a second child, and then a further £32,456 after the birth of a third baby.

Mothers are being “punished for parenting, marginalized at work, and expected to just bear the financial burden.”

“Moreover, the more kids you have, the steeper the fall. It’s not a gentle drop - it is a economic nosedive causing financial damage of over £100,000 for a woman of three kids.”

Catastrophic Effect on Quality of Life

Analysts described the decline in pay as “catastrophic for women’s living standards.”

“Income is freedom, and depriving women of that freedom because they chose to become parents is absolutely scandalous.”

Data reflect the unfair reality for mothers in the workforce, with demands for family leave rules to be brought into the 21st century.

“Tackling the maternal penalty needs updating parental leave rules into the modern era, making sure all mothers and partners get sufficient compensated time off when they start as caregivers – we should adequately support parenting together with work, not in opposition to it.”

Current Parental Leave Policies

Shared family leave was introduced in 2014, permitting couples to split up to almost a year of leave, and up to 37 weeks of pay after the birth or adopting of a child.

But, uptake has remained low.

Under existing rules, mothers’ leave is paid at 90% of a mother’s average each week earnings for the initial six weeks, then drops to the lesser of either around £187 a week or ninety percent of the mother’s typical pay for 33 weeks.

New fathers can receive 14 days paid leave at a rate of either £187.18 a per week or ninety percent of typical each week income, whichever is less.

Government Review and Early Years Funding

The government has pledged favorable measures from establishing adaptable schedules the standard, to enhanced safeguards for expectant mothers and immediate fathers’ leave.

Yet with childcare funding for kids aged nine months and older just now rolling out and nurseries in some areas finding it hard to accommodate need, there’s yet a long way to go before women are on an level playing field.

Recently, employed mothers and fathers who have an income below £100k a year were qualified for thirty hours of government-funded nursery care a week during term time for children aged nine months to four years.

The roll-out coincides with the childcare industry encounters recruitment and financial challenges.

A survey found that ninety-four percent of childcare centers were likely to raise their fees for ineligible families.