Having children has a lasting effect on women’s earnings. Time out, part-time work, and less likelihood of promotion when competing with those not juggling care mean that five years after the birth of a first child, mothers’ monthly earnings are on average 42% lower than one year before birth, an average cumulative loss of £66k (ONS). Lower earnings mean lower pension contributions and feed the gender pensions gap.
The parental-leave system contributes to unequal caring. Statutory maternity pay lasts up to 39 weeks while paternity leave provides only one to two weeks. This initial inequality sets up unequal caring roles from the beginning.
Employers can play a role in changing patterns. Standard Life offers both parents 26 weeks of paid leave. I have heard informally that this has helped create a culture in which partners of those giving birth are actively encouraged to take equal leave, rather than being made to feel that doing so demonstrates a lack of work commitment.
Equal leave would not remove the gender pensions gap by itself. Women still undertake more of the ongoing childcare, are more likely to work part-time, experience pay gaps, and work in lower paid sectors.
But more equal leave could prevent these patterns from becoming established so early. If both parents had similar time away from work, and employers encouraged them to take it, care might subsequently be shared more equally.
It might not be possible to get rid of all financial penalties associated with parenthood but perhaps our goal should be to stop it being borne just by mothers. A more evenly shared “parenthood penalty” would still represent progress and could help eliminate the motherhood penalty.
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