For Vision 2030 to be a success, we need policies that work for everyone. Vision 2030 is AXIS Network’s invitation to accelerate progress towards a fully inclusive and diverse energy industry. Equal parenting policies, bringing paternity leave policies in line with maternity leave policies is a vital part of this process. The economic and workforce health impacts are both positive and the importance of the energy industry being seen as a modern and inviting place to work are key to our future success.
The UK has the lowest paternity leave offering in Europe, providing an entitlement of 2 weeks with a rate of £172 a week, equivalent to £8,900 a year which is only 44% of the living wage. A recent study, Leave in the lurch, recommends a statutory paternity leave of 6 weeks at 90% of income in line with the current statutory maternity pay.
Some energy industry companies have seen the benefits of enhancing the existing statutory provision. In 2020, TotalEnergies introduced a gender-neutral family policy which offers 12 weeks’ paid leave to any new parent following the arrival of their child.
Why does this matter?
The report: “Leave in the lurch: Paternity leave, gender equality and the UK economy” by The Centre for Progressive Policy (CPP), Pregnant then Screwed and Women in Data, explores the economic and health impacts of extending the statutory entitlement to paternity leave and pay.
It outlines that there is a 4% decrease in the gender pay gap in countries with more than 6 weeks paternity leave. In our energy industry, with an operator pay gap average of 20.6% and a supply chain pay gap average of 24.2%, implementing this policy across the industry as one step of the Vision 2030 strategy could have a real impact.
What is the link between increased paternity leave offering and a reduced gender pay gap?
CPP’s analysis of OECD data finds that a woman’s partner taking parental leave is associated with a 34% increase in the likelihood of a woman being physically ready to return to work. The report states: ‘The IFS finds that the gender pay gap grows year on year after childbirth as mothers in low-hours jobs see no wage progression, reaching 33% by the time a woman’s first child is twelve. Overturning such inequalities can boost economic output. For instance, continual improvements in gender equality in pay and workforce participation are expected to improve economic outcomes for developed countries – boosting EU GDP by 6.1% by 2050.’
But it’s not just about statistics, the UK Government’s Shared Parental Leave Evaluation Report states: ‘The provision of family-friendly policies and parents’ increased satisfaction with their work-life balance has a positive relationship with their commitment to their employer and may lead to a more productive workforce in the long-term.’
Mental health also plays a huge part in this; according to the research 63% of dads did not feel mentally ready to return to work when they did in the existing statutory paternity provision.
For us to deliver the energy transition that is so important to this country we need the best people making up diverse teams, working together to deliver innovation and efficiency. We can only attract the best people if we have a working environment and policies that allow them to fulfil their parenting aspirations alongside their working roles. Equal parenting policies go a long way to starting them off on this new phase of their life in the best possible way.
Making these changes now, the energy industry will become a more attractive industry for all, creating a thriving and productive workforce and making substantial inroads towards Vision 2030.