Parental Leave (Hansard, 28 October 1999)

§ Mr. Bayley

New rights to unpaid parental leave will be introduced from 15 December 1999. Under existing benefit rules a lone parent who is working will be able to qualify for Income Support while taking parental leave from their employer provided that they meet the normal qualifying conditions. This will also be the case for parents who are able to qualify for Income Support on sickness or other grounds. Some parents may be able to qualify for other benefits such as Housing Benefit or Jobseekers Allowance if they can meet the normal conditions. Precise numbers of people who claim in these circumstances will depend upon how many people decide to exercise their right to take up parental leave. We estimate there could be around 8,000 people per year who will claim under existing benefit rules, at an additional cost of some £10 million.

We also propose to change Income Support rules to make Income Support available for couples who would not otherwise qualify while on parental leave. The change will apply to couples on a low income who are exercising the new rights to statutory unpaid parental leave to care for a child who lives with them. Income Support will be available when the only earner is taking unpaid parental leave and the family is in receipt of either Working Families Tax Credit, Disabled Persons Tax Credit, Housing Benefit or Council Tax Benefit on the day before the parental leave is taken. (Where both members of the couple work, Income Support will be available if both take statutory unpaid parental leave at the same time). Our latest estimate is that about 1,000 people per year will claim Income Support under these new provisions, at a cost of £1.5 million.

We are committed to helping families achieve a balance between their home and work lives. This measure will support the new parental leave entitlements in the Employment Rights Act and help low income families take up their statutory entitlement.