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Official figures indicate that women suffer a substantial loss of around £65,600 in earnings by the time their eldest child turns five years old, demonstrating the so-called “maternal price” that risks their financial security.

Significant and Enduring Pay Reduction

Mothers in England face a “substantial and prolonged decline” in their pay after giving birth to children, as they are less inclined to remain in the workforce, according to analysis.

The study revealed that mothers’ typical monthly income had fallen by 42%, or over £1,000 monthly, five years following the birth of their first baby, versus their pay 12 months prior to the child’s arrival.

Cumulative Financial Impact Across Several Kids

It translates to a forfeiture of £65,618 over a five-year period, according to the research, which monitored pay data from 2014 through 2022.

On average, there is an additional reduction of around £26,300 following the birth of a second baby, and then a additional £32,456 after the arrival of a third baby.

Women are getting “penalized for caring, sidelined at their jobs, and assumed to just bear the cost.”

“Moreover, the more children you have, the greater the decline. It’s not a gradual drop - it is a economic freefall leading to financial damage of more than £100,000 for a woman of three kids.”

Catastrophic Effect on Living Standards

Analysts labeled the reduction in income as “catastrophic for mothers’ living standards.”

“Money is freedom, and stripping mothers of that independence because they chose to become parents is absolutely outrageous.”

Statistics reflect the unjust reality for employed women, with demands for parental leave policies to be brought into the modern era.

“Tackling the motherhood penalty needs bringing parental leave rules into the modern era, ensuring both parents and partners get sufficient paid time off when they become parents – we should adequately accommodate parenting alongside employment, not in opposition to it.”

Existing Family Leave Policies

Shared family leave was introduced in 2014, enabling couples to split up to almost a year of time off, and up to over eight months of pay following the arrival or adoption of a baby.

However, participation has remained low.

Under existing rules, maternity leave is paid at ninety percent of a woman’s average weekly income for the initial one and a half months, then falls to the lowest of either around £187 a per week or ninety percent of the mother’s typical pay for over seven months.

Expectant fathers can receive two weeks’ compensated time off at a rate of either around £187 a week or 90% of average each week pay, whichever is lowest.

Government Examination and Early Years Support

Authorities has pledged favorable measures from making adaptable schedules the standard, to enhanced safeguards for pregnant women and immediate fathers’ leave.

Yet with childcare funding for kids from nine months plus only just rolling out and childcare providers in certain regions struggling to meet need, there’s yet a considerable distance to go before women are on an equal footing.

In September, working parents who earn up to £100k a year were eligible for thirty hours of government-funded nursery care a week during term time for children aged nine months to four years old.

This initiative comes as the childcare industry faces staffing and funding difficulties.

A survey found that ninety-four percent of childcare centers were expected to raise their rates for non-eligible households.