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An impact assessment carried out on behalf of the European Parliament looking at the affect on EU countries over the next 2 decades has revealed that extending maternity leave to 20 weeks at full pay will cost UK taxpayers £2.5 billion per annum.
At present new mothers are entitled to a full year off work, but their employers are required to pay only six weeks’ salary at 90 per cent of their average earnings.
They then receive 33 weeks of taxpayer-funded statutory maternity pay, which currently stands at £125-a-week. The remaining weeks are unpaid.
The European Parliament is due to vote next month on the proposals which have been branded ‘completely unaffordable’
The UK would bear 47% of the total, says the report - £47.832 billion or £2.5 billion a year.
The total cost of the proposal to the UK would be nearly £57 billion over a period of 19 years.
The proposal will feature in the controversial Pregnant Workers Directive
Commenting, Kieran O'Keeffe, Head of European Affairs at the British Chambers of Commerce, said:
"This directive should be about setting minimum EU standards for the health and safety of pregnant workers - not adding new payroll costs for overburdened companies and national social security systems.
"These figures confirm that the Parliament's proposals are completely unaffordable as governments across the EU seek to deal with budget deficits and the aftermath of recession.
"The Commission's original proposal to extend maternity leave to 18 weeks, but with individual member states allowed to decide the level of pay, is a better, more affordable option."
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