§ Helen JacksonTo ask the Secretary of State for Trade and Industry what assessment she has made of the costs to small businesses of women taking statutory maternity leave. [26051]
§ Alan JohnsonFor most small firms, the probability of an employee taking maternity leave in any given year is low. For example, survey evidence suggests that only about a tenth of workplaces with 10 or fewer employees have anyone going on maternity leave in any given year.
Small businesses can recover 100 per cent. of the statutory maternity pay they pay out plus an additional amount to compensate for any associated employers' national insurance contributions they may have paid. Some small businesses, however, may choose to offer higher levels of maternity pay and longer periods of leave as a matter of good practice. Small businesses will also face costs in covering for the absent employee. The cost to any particular business will depend on the wage paid to the pregnant employee and how the business decides to cover for the absent employee.
The Government have published a Regulatory Impact Assessment (RIA) on the simplification of maternity leave which examines the likely costs of the changes to maternity leave which will be introduced in 2003. The RIA estimates that the total annual costs to small businesses of the increase in length of ordinary and additional maternity leave will be £23 million£43.5 million.
§ Helen JacksonTo ask the Secretary of State for Trade and Industry what representations she has received relating to the impact of the new maternity and paternity arrangements on women employed within small businesses. [26053]
§ Alan JohnsonThe Government's proposals to improve maternity leave and pay and introduce paid paternity leave have been the subject of extensive public consultation. These measures were put forward in the Green Paper "Work and Parents: Competitiveness and Choice" (published December 2000) to which we received over 600 formal responses. Further responses were received following the publication of framework documents in May 2001 outlining the operation of the schemes. During the public consultation period we received responses from individual employers of all sizes, employer representative groups including those specifically representing small employers, parents, and employee representative groups.
156WThere was strong support from employers and employees for the proposals to simplify maternity rights and introduce paid paternity leave. The Government Response on simplification of maternity leave, paternity leave and adoption leave which was published on 8 November 2001, sets out the decisions the Government—informed by the consultation process—has taken. Copies of all responses are available for consultation on request in the DTI Library.