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UK Government Opens Call for Evidence on Parental Leave and Pay - What Employers and Payroll Teams Need to Know

The Department for Business and Trade (DBT) and the Department for Work and Pensions (DWP) have launched a Call for Evidence to review the UK's parental leave and pay system. Running from 1 July to 25 August 2025, this consultation presents a significant opportunity for employers, HR professionals, and payroll providers to help shape future policy.

The review aims to support maternal health by ensuring women have adequate time and financial protection during pregnancy and the postnatal period. It also seeks to boost economic growth by helping more parents especially women stay in the workforce, reduce the gender pay gap, and address the motherhood penalty. In addition, it focuses on giving children the best start in life by enabling parents to support early development and wellbeing. The review further aims to enhance childcare flexibility, making leave options more adaptable to modern work and family life.

For payroll professionals and HR teams, this review signals potential changes to statutory parental pay, leave entitlements, and compliance requirements. Now is the time to assess internal policies and prepare for updates that could impact payroll processes and leave tracking systems.

Employers and payroll service providers are encouraged to take part in the consultation, either individually or on behalf of their organisations. Responses can be submitted online through the official portal.

The Call for Evidence closes at 11:59 PM on 25 August 2025.

Stay informed and involved to ensure your payroll practices remain compliant and aligned with evolving government policy.

Written by

Isabella Zermani
Pay Check
paycheck@paycheck.co.uk
+44 (0) 20 7866 4600