as a nation we agree that parental leave is a good thing and we make it law. therefore we need to fully fund it. otherwise women will be discriminated against.
The below is a previous response of mine:-
"Employers can claim back the SMP they pay. They are entitled to claim back at least 92%. Small employers can actually claim back all the SMP plus some compensation.
Companies with an annual liability for National Insurance contributions of£45,000 or less are entitled to claim back 100% of the SMP plus 4.5% additional as compensation for the NI contributions paid on the SMP."
The Government covers a huge cost of SMP as it is. To cover all the expenses related the maternity leave would be impossible. We have previous posters not happy about the annual leave accrued by their staff when they are on leave (this obviously forms part of their existing and ongoing contract of employment). Should the Government foot that bill too?
To bring it into perspective let's look at say 1 woman who earns £25,000. She takes a full years maternity leave and she works for a small businesses. This is what the government would have to pay out to cover all costs:-
6 weeks maternity at 90% of Gross salary - £2,907.69
33 weeks at standard rate (£136.78) - £4,513.74
13 weeks at unpaid - £0.00
Compensation at 4.5% - £333.96
These are very rough figures based on the average 25-30 year old females salary in the UK. They already cover all these costs for small businesses and 92% for larger businesses (deducting the 4.5% figure.)
If we were to go on and include annual leave accrued through maternity leave we are looking at additional figures of:-
Minimum A/L accrued over a year - £2,692.30
Without even looking at the cost of paid time off for pre-natal appointments you are looking at a minimum of £10,447.69 for a woman who earns this amount. Can you see this being feasible because with the government trying to make cuts left right and center already I can hardly see this being a realistic option.