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Additional Statutory Paternity Pay (General) Regulations 2010

My Lords, with those contributions we have clearly made up in quality what we lacked in quantity. I had thought that my reply could be very short, but it seems that it might take a little longer—the points raised by noble Lords merit an answer and I will try to deal with them all. The noble Lord, Lord De Mauley, expressed his welcome sympathy for the approach but raised a number of understandable issues, for example how paternity leave and pay will impact on employers, particularly SMEs. The timings for introducing the scheme have been chosen to give employers a longer lead-in period to allow them to understand and prepare for the legislation. We believe that implementation in April 2011 provides a suitable period for businesses to prepare effectively for the additional paternity leave. We have designed the administration of the scheme to be as light touch as possible to minimise the burden placed on businesses, as I said, and to give them an opportunity to claim back more than the 104.5 per cent of additional statutory paternity pay payments or the 92 per cent which can be claimed by larger employers. The noble Lord also asked about the risk of fraud and the responsibility of employers. HMRC, which is responsible for the administration of the other statutory payments, acknowledges the risk of fraudulent claims but regards the risk and the consequences for taxpayers’ funds as likely to be relatively limited. We will work to minimise the risk and the level of abuse in an appropriate and proportionate way. As with other statutory payments, such as statutory maternity pay, HMRC will conduct compliance checks with sanctions in the form of financial penalties for those employers or employees who abuse the system, details of which will be set out in guidance to be developed in 2010. If employers have suspicions about the validity of a claim—a point which I think the noble Lord was concerned about—they can refuse to pay and must then explain their reason to the employee in writing; the employee can then refer the matter to HMRC. The question of the impact of the changes in Europe was also raised. There are two measures currently subject to revision in Europe but they are of a different nature. The pregnant workers directive essentially concerns pregnant mothers and maternity leave; parental leave is a separate entitlement. Political agreement was reached on the revised parental leave directive at the end of 2009. The revised directive extends the minimum amount of parental leave from three months to four. These directives are different from this measure which gives new fathers a right to additional paternity leave; accordingly additional paternity leave will give parents further choice. The noble Lord was also concerned about what he described as a welter of legislation coming down the tracks in 2011. We wanted to give employers a longer lead-in period so that they could understand and prepare for the introduction of additional parental leave and pay. We were criticised from other quarters for doing that, but we believed that it was right. We believe that implementation in April 2011 provides a suitable period for businesses to prepare effectively for the changes. To further support businesses, guidance will be developed by October this year which will provide employers with clear instructions—I emphasise "clear" in the light of the remarks of the noble Lord, Lord Cotter. I hope that by then we will have removed any ambiguities regarding their responsibilities. The next phase of better regulation will address a range of issues affecting businesses in relation to employing people, including obligations within employment law in general. We recognise the problem; the Government are committed to reducing administrative and policy burdens on business. We have the same motivation—we want businesses to grow more jobs. On the expectations of employers in verifying claims, all employees who have self-certified that they are entitled to additional paternity leave will be considered to have met the conditions. No further checks are required; however, employers may if they wish request a copy of the child’s birth certificate or adoption notification and details of the mother’s employer or a doctor to support that claim. If that information is requested, it must be provided in order for the claim to be valid. If, after her return to work, a mother stops work again and resumes her entitlement to maternity pay, a father’s entitlement to leave and pay is not brought to an end. Equally, where a mother leaves her employment and starts working for another employer, the father’s entitlement to additional paternity leave continues. As to whether two fathers—for example, a natural father and a stepfather—can be eligible for additional paternity leave at the same time, more than one person taking additional paternity leave in respect of the same child goes against the policy intention of preventing more than one person being out of the labour market at any one time. Therefore, we have made it clear in the regulations that the mother can allow only one person to take additional paternity leave as a result of her ceasing to receive maternity payment. This will be reiterated in related guidance. We are developing plans to publicise additional paternity leave as part of a wider work and families communication strategy. This will involve a targeted set of activities aimed at improving awareness of help for fathers as well as mothers to balance work and family responsibilities. These activities will include putting in place improved guidance for families and employers on the businesslink and directgov websites and refreshing the pregnancy and work leaflet in the Bounty packs provided to all expectant mothers to include more details of rights for new fathers. HMRC will also be introducing, updating and disseminating guidance for employers through its usual channels. Again, we need to make sure that that is free of ambiguity. The noble Lord, Lord Cotter, made an interesting point about changing attitudes, pointing out that fathers who are not yet engaged will do so. That is absolutely right; we have seen significant changes in attitude among fathers, which is to be welcomed. We agree with the analysis that this is another step that will encourage the process, with all the positive benefits that will flow from that. Parenting will be seen as something to be shared by both parents and not just the responsibility of the mother. The direction of travel is right; we could wish that it was slightly faster, but it will give employers a chance to get used to the process. I was pleased with the point made by the noble Lord, Lord De Mauley, about a small business employing somebody who goes on maternity leave; there is a recognition that this is a skilled person whom the business has invested in, and that the individual has invested their livelihood. We want to get these people back. That is a really positive attitude and let us hope that, over a period of time, paternity leave will be seen in the same positive light as assisting another skilled worker whom we want to encourage to return to work. Approaches to childcare have changed over time. Primary care, as I have said, is no longer seen to be largely the woman’s responsibility. Fathers play an increasingly significant role, with 93 per cent taking time off around birth—maybe not a long period of time but they are engaging. Evidence published by the National Equality Panel shows that 44 per cent of women now earn as much or more than their partners, which is an interesting statistic. Early involvement by fathers in the upbringing of their children leads to a number of positive outcomes, and continued involvement throughout the child’s life leads to the reduced likelihood of the child’s involvement in criminal activity and increased educational attainment. Regarding the weekly rate of additional statutory paternity pay, it will be the smaller of the following two amounts: £124.88 or 90 per cent of normal weekly earnings. It is clearly meant to be "or" and not "and". We will scrutinise that and if there is any error we will make sure that it is corrected. I have endeavoured to answer all the questions raised. If I have not covered everything, I will write to noble Lords. In closing, I thank all those who participated in today’s debate—a small but quality group. The introduction of additional paternity leave and pay will create flexibility in childcare arrangements that will allow fathers to spend more time with their babies. It is right that we give careful consideration to these issues which are so important to family life. I commend these regulations to the House. Motion agreed.