All about paternity leave and how you could make the most out of yours.

  

With 53% of UK households stating they struggled financially during Paternity Leave, the UK’s statutory policy raises questions.

According to recent data, a third of British fathers admitted that they took no time off work following the birth of their baby, which they attributed to poor paternity pay. 62% stated that they would take more time off if the rate of Statutory Paternity Pay (SPP) was increased.

 

1. How much is Statutory Paternity Pay (SPP)?

‘In the UK, fathers are entitled to receive either £172.48 a week SPP or 90% of their average weekly earnings before tax and National Insurance contributions,’ Dan explains. ‘The amount paid will be whichever figure of the statutory and average amounts is the lowest. The average amount is calculated across the eight weeks prior to the 15th week before the baby’s birth.

‘It’s important to note that employers cannot pay you less than the statutory amount. On the other hand, some companies may have their own paternity scheme in place, which could entitle employees to more money. It’s worth checking your company’s paternity policy so you know where you stand and can plan your finances accordingly.

‘Remember, not everyone qualifies for Statutory Paternity Pay. You can check your eligibility on the Gov.uk website.’

2. How long can fathers take off for Paternity Leave?

‘Fathers can take either one or two weeks Paternity Leave. As of April 6, 2024, those opting to take a fortnight are able to either take the weeks back-to-back or separately.

It’s important to remember that a week of leave is based on your usual working days. For example, if you work on Thursdays and Fridays, your weekly leave entitlement will be two days.’

Dan adds, ‘Unlike Maternity Leave, you cannot begin Paternity Leave before the baby is born. Your Paternity Leave must end no later than 52 weeks after the baby’s birth, or due date if the baby was born early. Again, this is just the general guidance set out by the government – your company may have their own policies in place and offer an increased amount of time off.

‘Just 18% of the British public agree that a fortnight or less for Paternity Leave is an adequate amount of time. In addition to this, 63% of recent fathers stated that they didn’t feel mentally ready to return to work once their Paternity Leave was over, while 43% said that they’d returned early due to financial hardship.’

3. What’s Paternity Leave like around the world and how does the UK compare?

‘Paternity Leave rules and regulations vary around the world,’ Dan says. ‘In Spain, for example, fathers can take 16 weeks off for Paternity Leave while being paid 100% of their basic wage. Both mothers and fathers in Japan are entitled to take one year off, with fathers paid at 67% of their wage for the first 180 days and 50% thereafter.’

4. How can I make the most out of my Paternity Leave?

‘Depending on your employer, you may be able to top up your Paternity Leave with your contracted annual leave. If your employer agrees, this could be taken either before or after your Paternity Leave. As is the case for mothers on Maternity Leave, fathers will continue accruing annual leave while on Paternity.

‘Another option to consider is Shared Parental Leave (SPL). This enables parents to share leave for up to 50 weeks after the child is born (or adopted), with up to 37 weeks’ pay. Parents can take SPL at the same time, or in alternate sittings. You can find out more about Shared Parental Leave and check your eligibility on the Gov.uk website.’

5. How can families ease the financial burden of Statutory Paternity Pay?

‘Welcoming a new baby into your family can be an incredibly exciting yet stressful time. Your financial situation could change, requiring a period of readjustment, particularly where Statutory Maternity and Paternity Pay have taken the place of your usual full wage.

‘It’s understandable that any money you’re able to save prior to your baby’s birth is likely to go towards buying everything you need for the new arrival. However, if you can save a little bit extra in advance to help you through first few weeks, this could ease the adjustment to SPP. In turn, this could also allow you to make the most of your two-week entitlement without being plagued with financial worry and rushing back to work before you’re ready.

‘There are other ideas to consider when looking to bring in some additional income.

Could you have a big clear out before Baby’s birth and sell some of your unwanted items on second-hand sites such as Vinted or eBay? While this isn’t guaranteed to make you megabucks, it could provide a nice little boost when you need the extra cash the most.’

  

-ENDS- 

About Viva Money 

 

Viva Money is not a lender but is a fully regulated and authorised credit broker. Viva Money is a registered Trading Name of Digitonomy Limited, Registered in England and Wales (Company number 08385135), Registered Office; Steam Mill Business Centre, Steam Mill Street, Chester, Cheshire, CH3 5AN. Digitonomy Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference number: 690249. Licenced by the Information Commissioners Office, (registration number ZA007309)       

   

Website: https://vivamoney.co.uk/ 

   
Dan Whittaker - Personal Finance Expert at Viva Money    

   

Dan has worked in the consumer finance sector for over a decade in a number of roles, including developing and maintaining commercial partnerships, marketing, and digital development.    

    

Dan has strong market and product knowledge across a range of consumer finance products including, but not limited to, credit cards, savings, loans, and mortgages.