Government publishes review of parental leave and pay
Earlier this month, as part of its ‘Plan to Make Work Pay’, the Government launched a full review covering all types of parental leave and pay including maternity, paternity, adoption and shared parental leave and pay. It will consider how the system can be modernised for the benefit of parents and employers in addition to the changes that are due to be made by the Employment Rights Bill.
Key aims include assessing the current system’s strengths and weaknesses and focusing on creating a fair system for different types of parents, different employment statuses and employers which will include reviewing international models and drawing on stakeholder expertise.
It will assess the current system and the case for future reform against four objectives:
- maternal health: to support physical and mental health, recovery and wellbeing of women during pregnancy and post-partum by giving them sufficient time away from work with an appropriate level of pay
- economic growth through labour market participation: supporting economic growth by enabling more parents to stay in work and advance in their careers after starting a family, improve both women’s labour market outcomes, reduce the gender pay gap ‘motherhood penalty’ and harness benefits for employers
- best start in life: ensuring sufficient resources and time away from work to support new and expectant parents’ wellbeing and babies and young children
- childcare: supporting childcare choices to provide flexibility to reflect realities of modern work and childcare needs
As part of the review, the Government has also published a and a Call for Evidence which invites views and evidence on how well the current system is achieving these objectives. The call for evidence closes on 25 August 2025.
The review is expected to run for 18 months. It will conclude with a roadmap for implementing potential reforms and next steps in taking reforms forward.
Separately, under changes proposed in the Employment Rights Bill:
- paternity and unpaid parental leave will be available from the start of employment
- paternity leave and pay may be taken after shared parental leave
- dismissal protections for pregnant women and new mothers will be enhance; and
- the right to request flexible working will be enhanced.
Interim update by EHRC concerning duties under the Equality Act 2010 in relation to workplace services
Further to our last update in May, the EHRC has amended its interim guidance on 6 and 24 June, adding detail to the section on facilities in workplaces (meaning toilets, changing rooms and showers) to clarify what is required under the Workplace (Health, Safety and Welfare) Regulations 1992. It also confirms that it aims to provide the updated Code of Practice to the UK government for ministerial approval ahead of the full draft Code being laid in Parliament after the summer recess. Until the final Code of Practice is received (expected later in the year) employers should refer to the current version of the interim guidance when reviewing their arrangements for providing facilities in the workplace. Employers should be aware that permission has been sought for a judicial review of the interim guidance.
UK publishes new rules on sponsored jobs and salaries from 22 July
Following the May 2025 White Paper, the Home Office rolled out its first set of changes on 22 July 2025. These changes are predominantly focused at raising the skill levels for new Skilled Worker visa applications (which means the removal of 180 or so roles from the permitted sponsorship list) and changing salary levels.
Other changes (including increased residence for Indefinite Leave to Remain) have not yet been introduced.
In light of the impact of the changes outlined in our recent Briefing and discussed in our webinar "How will the UK's Immigration White Paper affect your business" hosted by Senior Counsels Vikki Wiberg and Charlie Pring (which you can access by completing this form we strongly recommend you continue to review your future recruitment and retention plans and speak with existing UK based colleagues on temporary visas (that may need sponsorship in the future), to assess your immigration strategy.
Pensions Schemes Bill
The much-anticipated Pension Schemes Bill was introduced into Parliament in June, which includes some significant changes in the pipeline for both defined contribution and defined benefit pension schemes. For more details on this and other proposed changes see our latest pensions bulletin here.
