Knights Employment Partner Karen Morovic welcomes the Chancellor’s announcement that new parents who work for themselves will now be eligible for paid paternity leave for the very first time.
Knights Employment Partner Karen Morovic welcomes the Chancellor’s announcement that new parents who work for themselves will now be eligible for paid paternity leave for the very first time.
I would have thought the paternity leave change is one of the more interesting aspects of the Budget today – and something I wasn’t necessarily expecting.
However, it does fall in line with the government’s aims of trying to help the self-employed and it will allow those impacted to have two weeks with their new child whilst receiving a state funded payment of up to £194 per week.
I would say that’s good news in terms of wellbeing and the general feel of workers and businesses because people are more productive and more efficient when they’re happier. This will help alleviate stress during the arrival of a new baby whilst reducing any pressure to go back to work too early. So that can make a big difference to people’s lives.”
The move to increase support for the self-employed was part of a raft of changes announced by the Chancellor – including a rise in the national minimum and living wages.
From an employment law perspective, it’s positive news overall for businesses:
For employers, there are no nasty national insurance increases or anything like that, but we do have an increase to the national minimum wage for the younger workers.
It’s not a massive significant increase and it’s something which is trying to right the balance in terms of the age differential which already exists, so I don’t think it’s too onerous I feel for businesses.
We’ve also got changes like the carer’s allowance, so people don’t lose their entire allowance when they earn over the threshold, which is very helpful for people who are carers and trying to hold down a job. So, I feel like the message the government is sending to both businesses and workers is one of support primarily.
We’ve got business rate relief, which should help in the hospitality and leisure businesses by increasing the threshold for small business rate relief from £12,000 to £18,000 – that’s specifically designed to help businesses invest in growth, recruitment, development and expansion.
There was also a mention by the Chancellor of the changes that are coming in the future with regards to righting the balance in terms of the gender pay gap.
On the whole, I would say these announcements are supportive measures for many businesses and workers.
Whether or not that will right the balance in terms of business growth and encouraging recruitment, given all the changes we’ve got going on as part of the Employment Rights Act 2025, I’m not so sure. However, it certainly isn’tanything unpleasant or nasty. It is primarily a message of growth and support, and I would hope that will help everyone going forward.
