Costs and benefits of improved leave for fathers in the first year: Too good to ignore

Expanding UK paternity leave to six weeks (taken flexibly in the first year of a child's life) at 90% of average weekly earnings (capped at £1,200/wk) could deliver £12.7bn in annual net social benefits. This cost-benefit analysis finds that a better-paid, extended and flexible leave policy earmarked to fathers would yield substantial gains through increased maternal employment and improved parental wellbeing. With approximately 75% of eligible fathers expected to take up such leave, the economic and social benefits are significant. In contrast, lower-paid options see substantially reduced take-up and impact. Beyond direct economic effects, increased paternal involvement is linked to better child development, greater family stability and improved workplace satisfaction.

We recommend the introduction of six weeks’ paternity leave, paid at 90% of average weekly earnings and available from day one of employment. A weekly earnings cap could help contain costs while maintaining strong uptake. This policy would serve as a crucial first step toward fairer, more effective parental leave, while supporting broader goals of gender equality and economic participation.

The addendum provides minor calculation adjustments and quantifies two further benefits.

Authors: Dr Joanna Clifton-Sprigg, Dr Alistair Hunt, Lily Zelezetskii, James Bailey.