How to make taking paternity leave affordable
Although new fathers have been entitled to two weeks paid paternity leave for nearly 20 years, many can’t afford to take it.
Only a third of eligible new dads are taking paternity leave because the pay is so low – Statutory Paternity Pay (SPP) in the UK is just £156.66 a week – according to research by EMW (emwllp. com). The commercial law firm found just over 200,000 fathers took paternity leave in 2021/22, compared to 636,000 mothers.
EMW points out that Statutory Paternity Pay has only increased by £20 since 2014 – but if it had kept up with inflation over that period, new fathers would now be entitled to £181 a week.
“There are many barriers to new fathers being able to take the time they need to care for their new baby and family,” says Jane van Zyl,
CEO of the charity Working Families (workingfamilies.org.uk). “Low levels of both statutory paternity pay and pay for shared parental leave are a real financial barrier for many families.”
“If at all possible, I would recommend fathers take paternity leave,” says personal finance expert Jasmine Birtles, founder of MoneyMagpie (moneymagpie.com). “It is only two weeks, and it’s two weeks with your little one that you won’t get back. So later on, I think you’ll be really pleased that you took it.”
1. Use paternity leave to avoid childcare costs
According to the charity Working Families (workingfamilies.org.uk), a baby’s biological father, or the partner, spouse or civil partner of the birth mother, can take paternity leave. If a child is adopted, you must be the partner, spouse or civil partner of the child’s primary adopter to be eligible. You can take either one or two consecutive weeks of paternity leave within 56 days of the birth.
“The father could take paternity leave when the mother goes back to work, so you’ve got a bit of extra time where you don’t need to pay for childcare,” suggests Jasmine. So if one of you is at home looking after the baby, you’ve at least got that saving.”
2. Use the time to sort out your finances
“One of the things you can do while you’re at home, as well as looking after the baby, is sort out things,” says Jasmine. “It’s a really good time to get on top of the bills and switch wherever possible, so you can save money there.”
3.
You may have plenty of stuff that could earn you a bit of extra cash if you sold it, Jasmine points out. “This would be a really good time to go through your cupboards and see what you’ve got that could go on eBay or Gumtree.”
See what you can sell 4. Buy second-hand bargains for baby
Although it’s lovely to buy brand new things for your new arrival, the cost of living crisis and low paternity pay may well make that impossible.
“Babies and children are perfectly happy with second-hand stuff, so it would be a really good idea to save money.”
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