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Government statistics reveal that mothers face a significant loss of around £65,600 in earnings by the point their first baby reaches five years old, exposing the termed “motherhood price” that jeopardizes their financial security.

Substantial and Enduring Earnings Reduction

Women in England face a “substantial and long-lasting decline” in their earnings after having children, as they become less likely to remain in a job, as stated by analysis.

The study revealed that women’s typical monthly pay had fallen by 42%, or £1,051 each month, five years after the arrival of their first child, versus their pay 12 months before the birth.

Cumulative Financial Impact Across Several Children

It translates to a forfeiture of £65,618 across five years, based on the analysis, which tracked pay data from 2014 to 2022.

Typically, there is an extra reduction of around £26,300 after the birth of a second child, and then a subsequent £32,456 following the arrival of a third child.

Women are getting “punished for caring, marginalized at their jobs, and assumed to just bear the financial burden.”

“And, the more children you have, the steeper the drop. It’s not a gradual decline - it is a economic nosedive resulting in financial damage of more than £100,000 for a woman of three children.”

Severe Effect on Quality of Life

Analysts labeled the decline in earnings as “catastrophic for women’s well-being.”

“Money is independence, and depriving women of that freedom because they chose to become mothers is nothing short of outrageous.”

Data reflect the unfair reality for employed women, with demands for family leave policies to be updated into the modern era.

“Tackling the motherhood penalty needs updating parental leave rules into the 21st century, making sure both mothers and partners get ample paid time off when they start as parents – we should properly accommodate parenthood alongside work, not in spite of it.”

Current Parental Leave Rules

Joint family leave was introduced in recent years, allowing couples to split up to almost a year of time off, and up to over eight months of earnings after the arrival or adopting of a child.

But, usage has stayed minimal.

Under existing rules, maternity leave is compensated at ninety percent of a woman’s typical weekly earnings for the initial one and a half months, then decreases to the lowest of either around £187 a week or 90% of the mother’s typical pay for 33 weeks.

New dads can take 14 days paid leave at a amount of either £187.18 a per week or 90% of typical each week income, whichever is less.

Official Review and Early Years Funding

Authorities has pledged favorable measures from making flexible working the standard, to stronger protections for pregnant women and day-one paternity rights.

However with nursery support for children from nine months plus only just rolling out and nurseries in some areas struggling to accommodate demand, there’s still a considerable distance to go before mothers are on an equal footing.

Recently, employed mothers and fathers who have an income below £100k a annually were eligible for thirty hours of government-funded childcare a week during term time for children from nine months old to four years old.

The roll-out coincides with the childcare sector encounters recruitment and financial difficulties.

Research revealed that 94% of nurseries were likely to raise their fees for non-eligible families.