Prime Minister Andy Burnham has confirmed a new paid time off work law change that will provide a boost to self-employed parents, with parental pay being extended to more than 150,000 additional parents per year.
Under changes announced on Monday, October 25, parental pay will now include self-employed dads and partners who have previously missed out. Current rules give self-employed dads no right to statutory paternity pay when their partner has a baby, meaning they miss out on £194.32 per week, or 90% of their average weekly earnings, whichever is higher.
Who qualifies under current rules
To qualify for paternity pay and up to two weeks of paternity leave, a person must be an employee, be employed by their employer up to the date of birth, and have been continuously employed by their employer for at least 26 weeks up to the 15th week before the baby is due.
There is no legal right for self-employed parents to claim statutory paternity pay, a situation the Prime Minister has now vowed to change.
What the change means
Mr Burnham has confirmed that paid paternity leave will be introduced for self-employed parents, as well as for parents who adopt, parents who have only just started a new job, and parents who have recently lost a job.
The PM described the change as a 'British first', with the move set to give eligible parents two weeks of support currently worth up to £194.32 per week so they can spend more time with their child.
In a post on LinkedIn, Mr Burnham said: "Imagine your baby's just been born, and you're back at work the next morning. That's the reality for thousands of self-employed dads every year, because right now they have zero right to statutory paternity pay. I just don't think it's fair. So I'm changing it.
"We are introducing paid paternity leave for self-employed parents for the first time in British history. The same goes for parents who adopt, people who've only just started a new job, and parents who've recently lost theirs.
"If you work full time, that's worth up to £194 extra a week - money in your pocket right when you need it most. It's a vital first step. But I know there is more to do."
Related changes to bereavement leave
The announcement comes after the PM announced changes to parental bereavement leave and pay from April 2027, which will see women and their partners who experience pregnancy loss at any stage be entitled to up to two weeks of unpaid leave to grieve.
The changes will apply to those who experience miscarriage, terminations or unsuccessful IVF embryo transfers. In these circumstances, there is currently no legal right to bereavement despite it being estimated that one in five women in the UK experience a miscarriage throughout their lifetime.
Under existing rules, parental bereavement leave and pay is only available to employees if they or their partner lose a child up to the age of 18 or have a stillbirth after 24 weeks of pregnancy, but from April, the right to time off will extend to pregnancy loss at any stage.
The changes are the latest in the PM's series of 'everyday fixes' designed to tackle everyday frustrations and save families money, which also includes ending the Carer's Allowance cliff edge and making higher tax-free mileage rates permanent.
