UK to fight EU's costly maternity leave plan

The UK Government has vowed to continue to fight EU plans to extend maternity leave to 20 weeks on full pay - after MEPs backed the move.

The European Parliament estimates that the move, which MEPs voted in favour of at the European Parliament yesterday, could costs UK businesses an extra £2.5bn a year.

However, the plan must be supported by EU governments to become law.

A Department for Business, Innovation & Skills spokesperson said the UK Government is "very disappointed" by the outcome of the vote.

"This is not the end of the process and the UK will be working hard in European Council to oppose the imposition of a requirement for fully paid maternity leave.

"These proposals would cost the UK at least £2bn a year - doubling current spending in this area.

"This is just the first stage in a very difficult negotiation and we know other member states share our concerns. The UK will not accept a directive which imposes significant costs on member states."

Current UK law entitles women to 12 months' maternity leave, with the first six weeks on 90% pay. For the remaining period, women are entitled to a statutory £125 per week.

Firms will be able to claim back all or some of the money from the Government.

But a Federation of Small Businesses spokesman said: "The worry is that the Government of the day wouldn't continue to reimburse, so it will fall on employers.

"The timings are difficult for small employers in particular."

- How would an extension of maternity leave affect your business? Email john.harrington@william-reed.co.uk or call 01293 610481