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Employment Benefits for Working Mums

Employment Benefits for Working Mums: Support, Flexibility, and More

In today's fast-paced world, where balancing professional ambitions with personal commitments is increasingly tricky, working mothers face a unique set of challenges. The ability to maintain career prospects while managing childcare responsibilities is no mean feat. Fortunately, employment benefits for working mums have come a long way, offering support and flexibility to help navigate these waters more efficiently. In this blog, we'll delve into these employment benefits, highlighting their significance and potential impact.

Navigating the Challenges: A Statistical Perspective

To truly appreciate the importance of employment benefits for mums, we must first understand the challenges they face. According to Vicky Pryce's insightful book Women Vs Capitalism, the systemic issues that working mothers encounter are not just personal hurdles but also have broader economic implications. Pryce highlights how the gender pay gap and lack of adequate support mechanisms result in a loss of economic productivity, costing billions in GDP annually.

The statistics are indeed startling. A report by the Institute for Fiscal Studies (IFS) shows that mothers earn 20% less per hour, on average, than fathers by the time their first child is 12. This disparity, often referred to as the "motherhood penalty," underscores the pressing need for effective employment benefits for working mums.

The Core Challenge: Childcare Affordability and Availability

The principal challenge for working mothers today is undoubtedly the affordability and availability of childcare. Parents, especially mothers, often find themselves in a bind, weighing the cost of childcare against potential earnings. This dilemma frequently leads to mothers either reducing their working hours or exiting the workforce entirely—a decision that can have long-lasting consequences on their career trajectory and financial independence (up to 25% according to the UN)

Addressing the Challenge: Workplace Nursery Scheme

One promising solution is the workplace nursery scheme. This initiative allows employers to provide nursery places directly or in conjunction with a third-party provider's such as Enjoy Benefits, Yellownest, Kinsail or Mintago, that are paid for via the pre-tax income of the employee, reducing the employee's PAYE and employers National insurance contributions - both of which are only charged against the net salary. By offering subsidised childcare, employers can alleviate the financial burden on working mothers, enabling them to focus on their careers without constantly worrying about childcare costs.

The benefits of this approach are manifold. Firstly, it reduces the cost pressure on families, making it feasible for both parents to maintain full-time employment if they choose. Secondly, it fosters a sense of loyalty and commitment among employees, as they feel supported in their dual roles as professionals and parents. Indeed, PWC have reported that a 10% reduction in childcare costs can account for an 11% uptick in maternal employment - the workplace nursery scheme reduces fees, by way of tax retake, by upwards of £10,000 a year against an average childcare cost of £18,000 a year from your pre-tax income. Think of all that additional money - to go towards pensions, mortgages or more.

By working in conjunction with other funding streams, like the 15-30 hour free childcare funding and or Universal Credit funding for childcare for those at the lower income threshold, there is a very real way that employers can negate the cost of childcare entirely for their teams. It is a little known fact that employers are actively encouraged by the scheme to make corporation tax deductible investments into the schools providing care - there is no reason why that investment cannot cover the full cost of care. Businesses, who are liquid enough, can offset the costs as a cash outflow without any impact on their profitability, rendering a staff benefit that pays for itself

 

Flexibility: The Key to Balancing Work and Home

Beyond financial considerations, flexibility is another crucial aspect of employment benefits for mums. The ability to work remotely or adjust work hours can be a game-changer for many mothers, allowing them to manage school runs, attend parent-teacher meetings, or care for a sick child without feeling the need to compromise their professional obligations.

Flexi-time and Remote Working Options

Implementing flexible work hours or offering remote working options can significantly enhance a working mother's ability to balance her responsibilities. These arrangements not only improve work-life balance but also contribute to increased job satisfaction and productivity.

In a study published by the Chartered Institute of Personnel and Development (CIPD), it was found that flexible working is associated with higher levels of employee engagement and reduced absenteeism. When working mums feel they have control over their schedules, they are more likely to remain in the workforce and pursue career advancement opportunities.

But research has also suggested that working cultures that veer too far into the world of working from home can lose productivity and imperil the chances of career progression for those who are felt to be physically absent from line of sight of their managers. Some of the challenges from working from home have been cited in Psychology Today as a removal of the social structures, variation and points of interaction that we would otherwise not benefit from at home. And with employers increasingly arguing the case that working from home does not increase productivity, and as more are mandating a return to work, we look at what policies can be put in place to better incentivise mothers to return to work.

Building a Supportive Ecosystem

While individual employers can make a significant impact, building a supportive ecosystem for working mothers requires a collective effort. Government policies, corporate practices, and societal attitudes all play a role in shaping an environment that truly supports working mums.

Enhanced Parental Leave Policies

Parental leave policies are a vital component of employment benefits for mums. Countries with more generous leave policies often see higher female labour force participation rates. Expanding parental leave to include both parents, with portions that are non-transferable, encourages a more equitable sharing of childcare responsibilities and helps reduce the long-term career impact on mothers.

Since its inception, there has been a gradual increase in SPL participation. In the 2015-2016 period, approximately 6,200 parents utilised SPL. This number rose to nearly 25,000 claims in 2023, marking the highest level of participation to date. Despite these gains, SPL usage remains low relative to the total number of eligible parents. Recent data indicates that fewer than 2% of new fathers have taken advantage of SPL since its introduction. 

Several factors contribute to this limited uptake:

  • Financial Constraints: The statutory pay for SPL is often insufficient, deterring many families from opting into the scheme. This issue is particularly pronounced among lower-income households, where the financial feasibility of taking leave is a significant concern.  
  • Awareness and Understanding: A lack of comprehensive knowledge about SPL eligibility and rights persists among both employers and employees. This gap in understanding can lead to underutilization of the available provisions.  
  • Cultural and Workplace Norms: Societal expectations and workplace cultures often do not support or encourage fathers to take extended leave, perpetuating traditional gender roles in caregiving.  

Mentorship and Professional Development

Another valuable benefit is access to mentorship and professional development opportunities. Employers that actively promote the growth of their employees, regardless of their parental status, are more likely to retain talent and foster a culture of inclusion. Mentorship programmes can provide working mothers with guidance and support as they navigate their career paths, ensuring that they remain competitive in their fields.

The Economic Imperative

The benefits of supporting working mothers extend beyond the individual and organisational level; they have profound economic implications. As highlighted by Pryce, increasing female labour force participation can significantly impact GDP. By enabling mothers to maintain their careers and thrive professionally, we can unlock a wealth of untapped economic potential.

Reducing the gender pay gap is not just an issue of fairness; it's an economic necessity. When women have equal access to opportunities and support, we move closer to achieving a more balanced and prosperous society.

Implementing Change: A Collaborative Effort

Driving meaningful change requires collaboration between governments, businesses, and individuals. Here are some actionable steps that can help create a supportive environment for working mothers:

  1. Advocacy and Awareness: Engage in discussions and advocacy efforts to raise awareness about the importance of employment benefits for mums. Highlight the economic and societal benefits of supporting working mothers.
  2. Policy Reforms: Work with policymakers to advocate for family-friendly policies that benefit working mums. This includes expanding parental leave, increasing access to affordable childcare, and addressing pay disparities.
  3. Corporate Commitment: Encourage businesses to adopt family-friendly policies and practices. This includes offering flexible work arrangements, supporting workplace nursery schemes, and prioritising gender diversity and inclusion in recruitment and retention efforts.
  4. Community Support: Foster a sense of community and support among working mothers. Networking groups, workshops, and online communities can provide valuable resources, advice, and encouragement.
  5. Education and Empowerment: Promote education and empowerment initiatives that equip working mothers with the skills and confidence they need to succeed in their careers. This can include workshops, training programmes, and access to professional networks.

What Hatching Dragons does to help our Families Reduce Costs

Hatching Dragons Nursery is committed to supporting families in managing the financial demands of childcare through a variety of innovative discount and subsidy schemes:

  1. Workplace Nursery Scheme - an employee benefit in which your employer pays for childcare from your pre-tax income, reducing your PAYE and their employers NICs. We've saved some families over £10k on this measure alone. See further details on Enjoy Benefits, Yellownest, Kinsail and Mintago
  2. 15-30 Hours free Childcare - 15 or 30 hours of childcare 38 weeks / year are funded by the local authority for children aged 9 months to 3 for eligible families and for all 3-4 year olds. Check your eligibility here
  3. Universal Credit - 85% of your fees are repaid by Universal credit for qualifying families up to a cap of just over £1000 a month. See here for more information
  4. Student Childcare Grants - 85% of childcare costs are covered by Student Finance for full time students. Read more here
  5. Tax Free Childcare - HMRC will top up any contributions made by qualifying families to their childcare tax account online with a 20% payment, up to an annual contribution of £2000 a year. For more information, click here
  6. Public Sector Discounts - of up to 50% for those working in charities, the civil or public sector or government
  7. Referral Discounts - 5% off for 6 months for every family you recommend, uncapped by the number you do.
  8. Sibling Discounts - 5% off for any sibling that enrols
  9. Advanced Payment - up to 10% off for families who pay down in advance

And we allow many of these discounts and subsidies to be bundled together to maximise your savings with us

Why not book in a visit at one of our schools to discover how we can help you?

 

Conclusion

Employment benefits for working mums are not just a nice-to-have but a fundamental necessity for creating an inclusive and equitable society. By addressing the challenges faced by working mothers, such as childcare affordability and availability, and promoting flexible work arrangements, we can support their ability to thrive both personally and professionally.

The journey towards achieving true gender equality in the workplace is ongoing, but with concerted efforts from all stakeholders, we can make significant strides. Let's commit to building a future where working mothers are empowered to pursue their ambitions, contribute to the economy, and provide for their families without compromise. After all, when mums succeed, everyone benefits.