§ Ms KellyTo ask the Secretary of State for Social Security what would be the estimated cost(a) to the Government and (b) to employers of paying statutory maternity pay at 90 per cent. of earnings for a period of 13 weeks, followed by (i) 13 and (ii) 39 weeks at a flat rate of £100. [150996]
§ Mr. Bayley[holding answer 28 February 2001]: The information is in the table.
£ million Estimated cost to: Government in 2001–02 Employers in 2001–02 Statutory maternity pay at 90 per cent. of earnings for 13 weeks followed by 13 weeks at flat rate of £100 1,300 600 Statutory maternity pay at 90 per cent. of earnings for 13 weeks followed by 39 weeks at flat rate of £100 2,100 1,200 Notes:
1. Costs to Government take no account of effects on tax revenue, or of any income-related benefit offsets.
2. Costs to employers include an estimation of the costs of engaging and training staff cover for employees on maternity leave and other costs, assuming the mother does not return to work during the statutory maternity pay period.
3. Possible benefits to employers such as staff retention are excluded.
4. Costs assume 100 per cent. take up by mothers eligible for receipt of statutory maternity pay in 2001–02