§ Mr. AlexanderTo ask the Secretary of State for Trade and Industry what is the estimate of the gross cost to the Exchequer on an annual steady rate basis of paying parental leave at(a) full earnings, (b) 90 per cent., (c) 50 per cent. 286W and (d) 30 per cent. of earnings replacement value assuming that the take up of (i) fathers is 100 per cent., and mothers is 100 per cent. and (ii) fathers is 50 per cent., and mothers is 90 per cent. [120393]
§ Mr. Alan JohnsonEstimates of the annual costs to the Exchequer of paid parental leave for each of these options are set out in the table.
£million Assume rate of payment Case (i) Mothers 100% Fathers 100% Case (ii) Mothers 90% Fathers 50% Full earnings replacement 3,440 2,050 90 per cent.1 3,095 1,845 50 per cent.1 1,720 1,025 30 per cent.1 1,035 615 1Earnings replacement The assumptions on which these calculations have been made are:
1 That the Exchequer meets the full costs of the paid parental leave.
2. That the 13 weeks of parental leave are spread evenly over the first five years of the child's life.
3. That every parent has only one child in the age group.
4. That no qualifying periods by length of service are taken into account.