What is the ‘motherhood penalty’? Study reveals insidious reason women are delaying having children

Women are put off having children because of a ‘motherhood penalty’ at work, according to a study.

While figures show just 1.49 children were born per woman in 2022, research has suggested that on average women would like two or three.

The study, carried out by thinktank Onward, found factors such as lack of financial support for new mothers and high childcare costs meant families were unable to afford more children.

Onward called on the government to double the length of time that new mothers receive a higher rate of statutory maternity pay, as well as more access for fathers to paternity leave. It said evidence showed that becoming a mother was associated with earning less each month and saving less in later life, The Times reported.

People are ‘priced out of parenthood’

While data shows women between 18 and 21 earn 0.2 per cent more than their male peers, by the ages of 40 to 49 they earn 10 per cent less. Women have average pension savings of £69,000 by the age of 67 compared with £205,000 for men.

Onward called on the Government to copy countries such as Sweden, which has higher rates of maternity and paternity pay, as well as a higher birth rate.

Phoebe Arslanagic-Little, from Onward, told The Times: “Many people delay having children or are not able to have as many as they wish, because they feel priced out of parenthood.

“But instead of smoothing the way for parents and prospective parents, our tax, benefit and employment rights systems are letting them down: children are our future.

“New mums and dads need more certainty and financial stability to allow them to have the families they want.”

Figures for England and Wales show a record low number of children being born each year — the last time enough children were born to prevent population decline was in the 1970s. The report added that when the Bank of England lowered interest rates during the financial crisis of 2008 there was a rise in birth rates.

An estimated 14,500 additional babies were born in 2009 with the British birth rate increasing by 7.5 per cent over the next three years.

The research was backed by advice forum Mumsnet, with founder Justine Roberts saying the report laid bare the challenges faced by millions of parents.

She said: “This report is an important contribution to the conversation about how we tackle the financial barriers to parenthood, and reflects much of what we hear from our nine million users, particularly around low rates of statutory maternity and paternity pay and the importance of tackling the motherhood penalty in the workplace.”