Department for Work and Pensions
Furloughed workers to receive full parental leave entitlement
- Also published by:
- Department for Business, Energy & Industrial Strategy
Furloughed workers planning to take paid parental or adoption leave will be entitled to pay based on their usual earnings rather than a furloughed pay rate.
- Pay for furloughed workers taking family related leave is to be calculated based on usual earnings rather than furlough pay
- full earnings will apply to Maternity Pay, Paternity Pay, Shared Parental Pay, Parental Bereavement Pay and Adoption Pay
- ensures workers about to take family-related leave are not penalised by being furloughed
Furloughed workers planning to take paid parental or adoption leave will be entitled to pay based on their usual earnings rather than a furloughed pay rate, the government recently (24 April) announced.
Entitlement to Statutory Maternity Pay, as well as the other forms of Parental or Adoption Pay, are currently calculated through someone’s average earnings over an 8-week assessment period. For Maternity Allowance, entitlement and the rate payable is also determined by looking at average earnings over a 13 week period.
The statutory instrument laid in Parliament recently will ensure workers whose period of family-related pay begins on or after 25 April will be assessed on their usual, full pay.
The changes will ensure those intending to take time off following the birth, adoption, or death of a child will not see their entitlement to pay affected as a result of being furloughed in the wake of the impacts of COVID-19.
Business Minister Paul Scully recently said:
Maternity and other forms of parental leave are pivotal times in people’s lives, and they should absolutely be protected from the impacts of COVID-19.
We are supporting workers and businesses in a way never seen before, in response to the unprecedented effects of COVID-19. These measures will ensure those on the Coronavirus Job Retention Scheme continue to receive the parental leave and pay they are entitled to.
Lords Minister for the Department for Work and Pensions, Baroness Stedman-Scott recently said:
At an already challenging time for families, peace of mind that they can rightly take time off and receive their full entitlement will provide much needed reassurance.
Throughout this health emergency we’ve taken unprecedented steps to help those affected make ends meet, and today’s new measures further extend vital financial support.
Notes to Editors
Pregnant women and new mothers are entitled to take up to 52 weeks of Maternity Leave. Up to 39 weeks are paid. For women who qualify for Statutory Maternity Pay (SMP), this is paid at 90% of usual earnings for the first 6 weeks, followed by 33 weeks at the statutory rate (currently £151.20). Adoption Leave and Statutory Adoption Pay (SAP) are the same.
To be eligible for SMP or SAP, a person’s average weekly earnings must be at least equal to the Lower Earnings Limit (currently £120 per week) over a prescribed 8-week test period. A person’s earnings over this period are also used to determine the earnings-related rate of SMP or SAP for the first 6 weeks.
Maternity Allowance is a benefit paid to working mothers (including self-employed mothers) who do not qualify for SMP – this is worth up to £151.20 a week for up to 39 weeks. Entitlement to MA, and the rate payable, are determined by reference to 13-weeks earnings in a 66-week test period.
Statutory Paternity Pay is up to 2 weeks long and is paid at the lower of £151.20 per week, or 90% of average earnings.
Shared Parental Pay is up to 50 weeks long and is paid at the lower of £151.20 per week, or 90% of average earnings.
Statutory Parental Bereavement Pay is 2 weeks long and is paid at the lower of £151.20 per week, or 90% of average earnings.
To be eligible for Paternity, Shared Parental and Parental Bereavement Pay, a person’s average weekly earnings need to exceed the Lower Earnings Limit (currently £120 per week) over a prescribed 8-week test period.
Latest News from
Department for Work and Pensions
Government launches cross-sector Working Group to help address multiple small pension pots22/09/2020 16:10:00
The Government has launched a cross-sector Working Group with industry to assess and make recommendations, as an interim step, on ways to tackle deferred, small pension pots.
Hundreds step up to help smaller employers Kickstart Britain’s recovery21/09/2020 13:10:00
Hundreds of organisations are stepping up to help Britain build back better by supporting smaller employers to give youth a chance and take advantage of the Government’s landmark Kickstart Scheme.
Government to help pension schemes seize long-term opportunities11/09/2020 16:05:00
The draft measures are aimed at improving saver outcomes, and supporting the economy by promoting investment in green tech and infrastructure by pension schemes.
Thousands of new Work Coach vacancies open across the UK10/09/2020 16:10:00
The number of Work Coaches is to be doubled to 27,000 nationally.
Landmark Kickstart scheme opens02/09/2020 11:12:00
New £2 billion Kickstart scheme will create thousands of new jobs for young people.
Taking action on climate risk: Improving governance and reporting by occupational pension schemes27/08/2020 11:05:00
The following is a speech made by Work and Pensions Secretary, Thérèse Coffey, on Wednesday 26 August 2020.
Britain’s pension schemes lead on climate risk26/08/2020 16:15:00
First of their kind plans to ensure pension providers consider the risk of climate change on their investments were unveiled today.
New help on offer for disabled people working from home during the pandemic19/08/2020 09:25:00
Disabled people can now benefit from financial support to work from home, thanks to an extension to the Access to Work scheme.