HC Deb 17 May 1999 vol 331 cc251-2W
Ms Kelly

To ask the Secretary of State for Social Security (1) what is his estimate of the gross cost to the Exchequer on an annual steady-state basis of paying parental leave at(a) full earnings replacement value, (b) 90 percent. of earnings replacement value, (c) 50 percent. of earnings replacement value and (d) 30 per cent. of earnings replacement value assuming the take-up of fathers is 50 per cent. and the take-up of mothers is 90 per cent.; [83806]

(2) what is his estimate of the gross cost to the Exchequer on an annual steady-state basis of paying parental leave at the rate of (a) £60 and (b) £100 a week assuming the take-up of fathers is (i) 10 per cent., (ii) 15 per cent., (iii) 20 per cent., (iv) 25 per cent. and (v) 30 per cent. and the take-up of mothers is (1) 30 per cent., (2) 40 per cent., (3) 50 per cent., (4) 60 per cent. and (5) 70 per cent. [83805]

Angela Eagle [holding answer 10 May 1999]The information is in the following tables:

Gross cost to the Exchequer on an annual steady state basis of paying parental leave for thirteen weeks to employees who have a child under 5
£million
Rate of earnings replacement Mothers Fathers
100 per cent. 830 2,610
90 per cent. 745 2,350

Gross cost to the Exchequer on an annual steady state basis of paying parental leave for thirteen weeks to employees who have a child under 5
£ million
Rate of earnings replacement Mothers Fathers
50 per cent. 415 1,305
30 per cent. 250 785

Note:

The take-up rate for fathers of 50 per cent. and mothers of 90 per cent., is assumed to be the same across the entire earnings distribution. Up to 415,000 fathers, earning on average £480 a week, and 315,000 mothers, earning on average £200 a week, would be entitled.

Source:

Family Resources Survey 1997–98, uprated to 1999–2000 prices using March 1999 Treasury Economic Assumptions.

Gross cost to the Exchequer on an annual steady state basis of pay parental leave for thirteen weeks to employees who have a child under 5 at the specified rates
£million
Take up £60 a week £100 a week
Fathers
10 per cent. 30 55
15 per cent. 50 80
20 per cent. 65 110
25 per cent. 80 135
30 per cent. 95 160
Mothers
30 per cent. 75 125
40 per cent. 100 165
50 per cent. 125 205
60 per cent. 150 250
70 per cent. 175 290

Note:

Take-up is assumed to be the same across the entire earnings distribution. Up to 415,000 fathers, and 315,000 mothers, would be entitled.

Source:

Family Resources Survey 1997–98, uprated to 1999–2000 prices using March 1999 Treasury Economic Assumptions.

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