HC Deb 25 May 2000 vol 350 cc616-7W
Ms Kelly

To ask the Secretary of State for Social Security if he will estimate 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 by 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 by mothers is (1) 30 per cent., (2) 40 per cent., (3) 50 per cent.,(4) 60 per cent. and (5) 70 per cent. [123437]

Mr. Bayley

The information is in the table.

The gross cost to the exchequer on an annual steady state basis of paying parental leave for 13 weeks to employees who have a child under five at the specified rates
£ million
Take up—percentage £60 a Week £100 a Week
Fathers
10 30 55
15 50 80
20 65 110
25 80 135
30 95 160
Mothers
30 75 125
40 100 165
50 125 250
60 150 250
70 175 290

Notes:

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

2 The assumptions on which these calculations have been made are:

that the Exchequer meets the full costs of the paid parental leave; that the 13 weeks of parental leave are spread evenly over the first five years of the child's life;

that every parent has only one child in the age group;

that qualifying periods by length of service are taken into account.

Source

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

Ms Kelly

To ask the Secretary of State for Social Security if he will estimate the gross cost to the Exchequer on an annual steady-state basis of paying parental leave at(a) full earnings replacement value, (b) 90 per cent. of earnings replacement value, (c) 50 per cent. of earnings replacement value and (d) 30 per cent. of earnings replacement value, assuming the take-up by fathers is 50 per cent. and the take-up by mothers is 90 per cent. [123436]

Mr. Bayley

The information is in the table.

Gross cost to Exchequer on an annual steady-state basis of paying parental leave for 13 weeks to employees who have a child under 5
£ million
Rate of payment Mothers Fathers
Full earnings replacement 745 1,305
90 per cent. earnings replacement 670 1,175
50 per cent. earnings replacement 375 650
30 per cent. earnings replacement 225 390

Notes:

1. Take-up 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 become entitled each year.

2. The figures above correct the answer given to the Written Answer on 17 May 1999, Official Report, columns 251–52W.

3. The assumptions on which these calculations have been made are:

that the Exchequer meets the full costs of the paid parental leave; that the 13 weeks of parental leave are spread evenly over the first 5 years of the child's life;

that every parent has only one child in the age group;

that no qualifying periods by length of service are taken into account.

Source:

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