Lancaster MP Cat Smith has welcomed the expansion of paternity pay to self-employed fathers and non-birthing parents for the very first time in the new Budget.

The measure is aimed at giving hardworking families expecting a baby some room to breathe.

The support is worth up to £388.64 per qualifying parent, with around 80 self-employed dads in Lancaster and Wyre potentially eligible each year.

At present self-employed fathers are one of the only groups to receive no support at all when a new baby arrives despite paying national insurance contributions and all the well documented costs associated with the arrival of a newborn.

Self-employed dads with The Dad Shift outside HM Revenue & Customs.

placeholder image — Self-employed dads with The Dad Shift outside HM Revenue & Customs.

Builders, taxi drivers, shopkeepers face a brutal choice at the birth of a child – each day at home costing them lost income, with the Joseph Rowntree Foundation estimating an average loss of £1,020 if dads choose to take the two weeks leave from work full-time employees are entitled to.

JRF estimates around 70,000 self-employed dads across the UK could benefit each year, with financial support worth between £6.8m-£18.9m (depending on take-up) flowing to hard pressed families.

Ms Smith said: “People who work for themselves help keep Lancaster and Wyre going. They’ve been left out of paternity pay for too long, and I’m pleased the Government is putting that right. It is a mark of respect for hard working people and the vital roles many also play as parents.”

“For local self-employed dads, this is help with the bills and a better chance to be at home with their new baby. I’ll make sure families here know what they can claim because in the middle of a cost of living crisis every penny matters to expecting families.”

“With the government review of parental leave due to conclude soon this isn’t the last word on the matter.

“Our statutory paternity leave offer as a whole is far shorter and worse paid than other countries and we need to do more to help dads support their partners, bond with their babies, and take their first steps figuring out what it means to be a father.”

George Gabriel, co-founder of The Dad Shift, said: “Given all the costs expecting families face this is going to be a lifeline – a bit of room to breathe so self-employed dads and non-birthing parents can spend even a little time supporting their partners and bonding with their babies before heading out the door to pay the bills.”

“Being a decent dad is one of the most important things a man can do and the government deserves some credit for showing respect for the roles these self-employed dads can and want to play at home.

“We hope the government now take the opportunity of the Parental Leave Review to go even further, and give every dad a decent amount of time paid at a rate they can afford to take when a baby arrives.”