The Motherhood Price: Women Lose Over £65k in Earnings by Age Their Child Turns Five Years Old
Government data indicate that mothers experience a staggering reduction of around £65,600 in income by the time their eldest baby reaches five years old, exposing the termed “maternal price” that risks their financial security.
Significant and Long-Lasting Earnings Reduction
Mothers in the UK experience a “substantial and long-lasting decline” in their income following having children, as they are less inclined to stay in a job, per analysis.
The study found that mothers’ average monthly pay had fallen by 42%, or over £1,000 monthly, 60 months after the arrival of their eldest child, relative to their pay one year before the birth.
Total Losses For Several Children
It translates to a forfeiture of over £65,600 over five years, per the research, which monitored pay data from 2014 to 2022.
On average, there is an extra reduction of £26,317 following the birth of a second child, and then a subsequent £32,456 after the birth of a third child.
Mothers are getting “punished for caring, marginalized at work, and expected to just absorb the financial burden.”
“Moreover, the more children you have, the deeper the decline. It’s not a gradual decline - it is a economic freefall causing financial loss of over £100,000 for a mother of three kids.”
Catastrophic Effect on Quality of Life
Experts labeled the decline in earnings as “catastrophic for women’s living standards.”
“Income is freedom, and stripping women of that independence because they chose to become mothers is nothing short of unacceptable.”
Data show the unjust reality for working mothers, with demands for family leave rules to be updated into the modern era.
“Tackling the maternal price requires bringing family leave policies into the modern era, making sure both mothers and fathers get sufficient paid leave when they become parents – we should properly accommodate parenthood alongside work, not in spite of it.”
Existing Parental Leave Policies
Joint parental leave was introduced in 2014, enabling parents to share up to almost a year of time off, and up to over eight months of earnings following the birth or adoption of a baby.
However, usage has stayed low.
Under current regulations, mothers’ leave is paid at ninety percent of a woman’s average weekly pay for the initial six weeks, then drops to the lesser of either around £187 a week or ninety percent of the woman’s average pay for over seven months.
New fathers can receive 14 days compensated time off at a amount of either around £187 a per week or ninety percent of typical each week pay, whichever one is less.
Government Examination and Childcare Support
Authorities has promised positive steps from making flexible working the default, to enhanced safeguards for pregnant women and day-one paternity rights.
However with nursery support for kids from nine months plus only just rolling out and childcare providers in some areas struggling to meet need, there’s yet a long way to go before women are on an equal footing.
Recently, working parents who have an income below £100,000 a annually were qualified for thirty hours of government-funded nursery care a week during term time for children from nine months to four years old.
The roll-out coincides with the early care industry encounters recruitment and funding challenges.
Research revealed that 94% of nurseries were expected to raise their fees for ineligible households.
