Nick Isles (Director, Centre for Policy Research on Men and Boys)
11 June 2025
Today sees the first ever “DadStrike” in the UK over calls to increase paternity pay.
It coincides with a report (10 June 2025) from the House of Commons’ Women and Equalities committee that argues for six weeks paternity pay at 80% of full pay. The BBC has a good summary and debate on the Equality at work: Paternity and shared parental leave report.
So what might be the way forward? The Nordic model of paternity leave—exemplified by countries like Sweden, Norway, and Iceland— seems to offer a model that has many pluses and few negatives. By offering generous (full pay or 80-90% of pay) non-transferable paid leave specifically for fathers (often referred to as “daddy quotas”), these countries promote gender equality in caregiving, support for child development, and enhanced long-term economic outcomes.
Certainly such policies require upfront public investment through social insurance or taxation. However, these costs are often outweighed by significant long-term benefits.
Shared parental responsibilities enable higher maternal workforce participation, reduce gender pay gaps, and lessen the financial burden on families. Fathers who take leave are more likely to remain actively involved in childcare, which correlates with stronger child outcomes and reduced demand on public childcare services.
Moreover, companies benefit from more stable workforces and higher employee satisfaction, while society at large gains through improved mental health, increased tax revenue from working mothers, and more equitable household dynamics. Benefits that could be as high as a 10% increase in tax take from parents returning and remaining in employment and higher productivity due to better parental work balance.
In short, the Nordic model demonstrates that well-structured paternity leave could well be an economically sound investment in human capital, family well-being, and inclusive growth.
In UK policy terms, the debate on paternity leave should not be just prefaced on the social, equality and business benefits, it must include the overarching economic benefits too.
More evidence is required to understand the Nordic model’s actual effect on tax revenue; productivity and reduced costs on public services such as childcare. After all the case for investment from the HM Treasury needs to be based on firm evidence and a clear return on investment – however that is measured.