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Official statistics reveal that women face a substantial reduction of around £65,600 in income by the point their first child turns five years old, exposing the so-called “maternal penalty” that risks their financial security.

Significant and Enduring Earnings Reduction

Mothers in England undergo a “substantial and long-lasting reduction” in their pay after giving birth to children, as they are less inclined to stay in a job, as stated by findings.

The study revealed that mothers’ typical monthly earnings had decreased by forty-two percent, or over £1,000 monthly, five years after the arrival of their first child, versus their earnings 12 months prior to the child’s arrival.

Total Financial Impact Across Several Children

This translates to a forfeiture of over £65,600 across five years, based on the study, which tracked earnings data from 2014 through 2022.

Typically, there is an additional loss of around £26,300 following the arrival of a second baby, and then a additional over £32,400 following the birth of a third child.

Women are getting “punished for parenting, marginalized at work, and assumed to just bear the cost.”

“And, the more children you have, the greater the fall. It’s not a gradual drop - it’s a economic nosedive causing economic damage of over £100,000 for a mother of three kids.”

Severe Impact on Living Standards

Commentators labeled the decline in income as “catastrophic for mothers’ well-being.”

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

The figures show the unjust situation for mothers in the workforce, with demands for parental leave policies to be updated into the modern era.

“Tackling the motherhood penalty requires bringing family leave rules into the modern era, making sure all parents and partners get ample paid leave when they start as caregivers – we should adequately support parenting alongside work, not in spite of it.”

Current Family Leave Rules

Joint family leave was established in 2014, permitting parents to split up to 50 weeks of time off, and up to over eight months of pay after the birth or adoption of a child.

But, usage has stayed low.

Under current regulations, mothers’ leave is paid at ninety percent of a woman’s typical each week income for the first one and a half months, then drops to the lesser of either around £187 a week or ninety percent of the mother’s typical salary for over seven months.

New fathers can take two weeks’ paid time off at a rate of either £187.18 a per week or ninety percent of average weekly pay, whichever one is less.

Government Review and Early Years Support

Authorities has promised favorable measures from making flexible working the default, to stronger protections for pregnant women and immediate fathers’ leave.

But with nursery support for children from nine months old plus only just rolling out and nurseries in certain regions struggling to meet demand, there’s still a long way to go before mothers are on an equal footing.

Recently, employed mothers and fathers who have an income below £100k a year became eligible for 30 hours of state-supported childcare a week during term time for kids aged nine months old to four years.

The roll-out comes as the childcare sector encounters staffing and funding challenges.

Research found that 94% of childcare centers were likely to raise their rates for ineligible households.