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Official statistics show that women experience a significant loss of £65,618 in income by the time their first baby turns five years old, highlighting the termed “maternal price” that jeopardizes their financial security.

Substantial and Long-Lasting Pay Decline

Women in England experience a “significant and prolonged decline” in their pay following giving birth to children, as they become less inclined to remain in a job, as stated by findings.

Research revealed that women’s typical monthly earnings had dropped by 42%, or £1,051 each month, five years following the birth of their eldest baby, relative to their earnings one year before the child’s arrival.

Cumulative Losses For Several Children

This equates to a forfeiture of £65,618 across a five-year period, per the analysis, which followed earnings data from 2014 through 2022.

On average, there is an extra loss of £26,317 after the birth of a second baby, and then a additional over £32,400 following the birth of a third child.

Mothers are being “punished for parenting, marginalized at work, and expected to just bear the financial burden.”

“And, the more kids you have, the steeper the drop. This isn’t a gentle drop - it’s a financial nosedive causing economic damage of over £100,000 for a woman of 3 children.”

Catastrophic Effect on Quality of Life

Analysts labeled the decline in income as “catastrophic for women’s quality of life.”

“Income is freedom, and depriving mothers of that independence because they chose to become mothers is nothing short of unacceptable.”

Data show the unjust situation for employed women, with calls for family leave policies to be brought into the 21st century.

“Solving the motherhood penalty requires bringing parental leave policies into the modern era, making sure both mothers and fathers get adequate paid time off when they become parents – we should adequately accommodate parenting together with work, not in opposition to it.”

Existing Parental Leave Rules

Shared parental leave was introduced in recent years, permitting couples to share up to almost a year of leave, and up to over eight months of earnings after the birth or adopting of a baby.

But, uptake has remained low.

Under current rules, mothers’ leave is paid at 90% of a mother’s typical weekly earnings for the first six weeks, then falls to the lesser of either around £187 a per week or 90% of the woman’s typical salary for over seven months.

New fathers can receive two weeks’ compensated time off at a rate of either around £187 a per week or 90% of typical weekly earnings, whichever is less.

Official Examination and Early Years Funding

The government has promised favorable steps from establishing flexible working the default, to stronger protections for expectant mothers and immediate fathers’ leave.

Yet with childcare funding for children from nine months plus only just rolling out and childcare providers in some areas struggling to meet need, there’s yet a long way to go before women are on an level playing field.

In September, employed mothers and fathers who have an income below £100,000 a annually became qualified for 30 hours of government-funded nursery care a week during term time for children from nine months old to four years old.

This initiative comes as the early care sector faces staffing and financial challenges.

A survey revealed that ninety-four percent of childcare centers were expected to increase their rates for non-eligible households.