The Motherhood Pay Gap- It’s Time To Talk Cash

More and more research is being published about the Motherhood Pay Gap and how, despite efforts to bridge this gap, the gap is still there!

In the UK, women’s earnings drop by around 45% after having children, and the gap never truly closes! Why should having children feel like a punishment for mothers? This does not just affect the mother but has a much greater impact on society and the economy. We already know childbirth rates in the UK are dropping and more women are leaving the workforce; we need urgent change!

What is the Motherhood Pay Gap?

So what is the motherhood pay gap? The motherhood pay gap is the difference in earnings between women who have children and those who don’t. It goes beyond the general gender pay gap because it specifically reflects the financial penalty that mothers face once they have children, often called the “motherhood penalty”.

The data, let's talk numbers…

The data shows this in much greater detail, so let’s explore that! Mothers in the UK earn £302 less per week than fathers, about one third less pay and nearly 20% less per hour. Now let’s compare millennium mothers with peers; a UCL study of people born in 1989-1990 found that women earned £14.27 p/hour whilst mothers earned £12.50 p/hour. Comparing this with overseas in the US, women experience a dramatic 40% decline in income following childbirth.

These drops in earnings are per child; for example, research shows that each child under the age of five reduces a typical mother’s earnings by 15%.

There are many contributing factors to this pay gap, but perhaps the biggest issue here is unaffordable childcare. Now in the UK, if your child is over 9 months old, you may be eligible for 30 hours of free childcare per week. On paper, it sounds like a breakthrough. In reality, it’s more of a bandage over a wound. Why? Because the funding provided to nurseries and childminders doesn’t cover the true cost of care. Many providers are already struggling to keep their doors open, which means fewer places available for parents who desperately need them. Waiting lists are growing, staff are underpaid and leaving the sector, and flexibility is almost non-existent for parents working shifts or non-traditional hours.

Let’s take a look at the statistics behind this. Childcare in the UK remains one of the most expensive in the world. On average, UK families spend around 19 % of their income on childcare, almost double the OECD average of 10 %. This places the UK in the top five most costly nations globally for childcare.

Furthermore, nursery costs for under-twos can swallow up to 65 % of a parent's weekly take-home pay. In parts of England, including London and the East, this figure climbs even higher, with families paying up to 71 %!

We have been talking to many mothers returning to work following maternity leave, and the challenges do not just lie with affordable childcare. Many are reporting they are returning to the workplace in different job roles and have moved to different departments. Returning to work is stressful enough, let alone returning to a different role and team; this just adds to a mother’s anxiety. We understand changes in the needs of the business may mean situations like his are unavoidable; however, there are steps companies can take to ensure their mothers return to work feeling confident and happy. We will dive into these solutions in a different blog.

Why does it matter?

The Motherhood Pay Gap is not just a problem for mothers but a huge problem governments need to recognise. Not only do families feel the strain financially, but this means they have tighter budgets, fewer savings and financial insecurity. Businesses lose talent; ambitious women are pushed out of the workforce or stalled in their careers. Companies miss out on leaders who bring resilience, problem-solving, and emotional intelligence, the very skills motherhood sharpens. The result? Higher staff turnover, recruitment costs, and a loss of diverse perspectives at decision-making levels.

Finally, the economy suffers. Research shows that closing gender and motherhood pay gaps could add billions to GDP. When women can work, earn, and progress on equal footing, productivity rises and tax revenues grow. Instead, the penalty keeps half the workforce from reaching its full potential.

The way forward…

There are many ways in which this can be tackled, but it has to come from the top down. The UK government need to firstly address affordable childcare options for all women. Equal parental leave, many forward-thinking companies are adopting this policy, which means the burden doesn’t fall solely on the mother. Sharing caregiving responsibilities helps women stay on track with their careers, whilst giving fathers a fair role at home.

During COVID, we saw many employers adopting remote work options; however, we are hearing from mothers that many companies are scrapping remote working and requiring employees to return to the office full-time. Part-time work, remote options, and flexible hours should not mean slower promotions or lower pay. Companies need to redesign career paths so that flexibility and high performance can coexist.

Finally, many companies invest in the health and well-being of their employees; however, these solutions need to be evaluated regularly to ensure these solutions are what the employees need. For example, many corporate benefit schemes include access to physios and other specialists, but this is only when a problem arises. What about preventative health and well-being solutions which are tailored to the individual needs of the employee, which move in real-time. This is exactly what we offer here at Matresa.

Conclusion…

There is still the chance to improve these outcomes by implementing many of the things we have discussed above. It’s refreshing to see more and more companies introduce some of these policies we have discussed; however, for more global change, we need to continue raising awareness of this crucial challenge mothers face. Here at Matresa, we are here for it! Every organisation, leader, and policymaker has a role to play. And every mother deserves a fair chance to succeed!