Clause 2 - Statutory paternity pay
Employment Bill
10:30 am
Mr Alan Johnson (Minister of State (Employment and the Regions), Department of Trade and Industry; Kingston upon Hull West and Hessle, Labour)
We have estimated that the cost would be around £60 million a year. That is an important point, although the amendment has been tabled to the wrong clause.
Let me deal with each element of the amendment, because one important principle about the cost of administering the scheme was raised by the hon. Members for Runnymede and Weybridge (Mr. Hammond) and for Hertford and Stortford. We have made it clear that employers will have the right to recover statutory paternity pay in the same way as they recover statutory maternity pay. All employers will be able to recover at least 92 per cent. of statutory paternity pay—the hon. Member for Runnymede and Weybridge said on moving the amendment that that is quite a large proportion—and small employers will be able to recover 100 per cent. Because of the changes that we have made elsewhere, more small employers will qualify than previously, which mirrors the position applying to statutory maternity pay.
It is perfectly reasonable to expect larger employers to demonstrate their commitment to employees taking leave to care for new families by funding a small amount of payments made to them while they are on paternity leave from work.