Paternity pay in UK is one of the lowest in the developed world, MPs say

The UK has one of the "worst statutory leave offers for fathers and other parents in the developed world", the chairwoman of the Women and Equalities Committee has warned.

Sarah Owen said the UK's parental leave system was in "urgent need of an overhaul to fit with the reality of working parents' lives".

"The UK's parental leave system has fallen far behind most comparable countries," she added.

Her comments come as a new report by her House of Commons committee found that a maximum of two weeks' paternity leave is "completely out of step with how most couples want to share their parenting responsibilities" and "entrenches outdated gender stereotypes about caring".

Explainer: How paternity leave in the UK compares to other countries

The UK's rate of parental pay is "completely out of kilter with the cost of living, has not kept pace with inflation and is far below rates in most comparable countries", the report states.

The Women and Equalities Committee has urged the government to consider raising paternity pay to the level of maternity pay during the first six weeks, which equals 90% of someone's average earnings.

It also called on the government to either amend the Employment Rights Bill to legislate for a day one right to paid leave or commit to "considering this vital change within its review" in consultation with employers.

The report stated that working parents "will be let down by a review that leads only to tinkering around the edges of the system".

In its report, the committee also recommended a phased introduction of increases to statutory pay across the system to improve the rates for all working parents up to 80% or more of average earnings or the real living wage.

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Additionally, it urged the government to consider options for providing statutory paid leave for all self-employed working fathers as part of its review of the parental leave system, as the lack of provision for self-employed fathers was "deeply unfair".

The report suggests considering the introduction of a paternity allowance for self-employed fathers and other parents, similar to the maternity allowance.

The upcoming review into the parental leave system must examine the function and necessity of eligibility rules, with a view to "simplifying or removing the employment status, time in service and earnings criteria", the committee added.