Self-employed dads are footing £1.1 billion national insurance bill while getting nothing back in paternity leave

New research from Graeme Downie MP and campaign group The Dad Shift has uncovered that 942 thousand self-employed fathers are paying a whopping £1.1 billion in National Insurance contributions each year while receiving nothing back in paternity leave or support when a new baby arrives.

The UK’s statutory paternity leave offers new fathers two weeks off at £184.03 a week. Even this offer, one of the worst in the OECD, is unavailable for self-employed dads, though self-employed mothers are eligible for 39 weeks of maternity allowance (and the government states that qualification for this depends on national insurance contributions). This is highly unusual internationally where other countries routinely offer the same benefit to the self-employed e.g. Italy, Belgium, Sweden, Slovakia, Finland.

Each year, around 39,000 self-employed men in the UK have a baby. These new dads pay an average of £1,171 in NICs every year, and so, in the year their new babies arrive alone pay more than three times in NICs what they’d be owed if given the same support as employees: £46.1 million in NICs compared to £14.4 million if each were paid at 184.03 for two weeks. In fact, these new dads’ NICs cover nearly 80% of what the government spends on paternity leave for all employed fathers – £59.3 million – yet they are entitled to nothing themselves

Further HMRC FOI responses to The Dad Shift revealed the distribution of the self-employed dads footing the £1.1 billion bill. In thousands of self-employed tax paying dads: London 177.4, South East 153, South West 100.8, East England 106.7, East Mids 65.3, West Mids 78.1, North East 28.4, North West 92.8, Wales 44.1, Scotland 64.4, Northern Ireland 31.

On The Tools, the UK’s largest online construction community, polled 2,000 electricians, builders, plumbers and other tradespeople. They found that 1 in 3 tradesmen (30%) didn’t take any time off at all when their last child was born. Additionally, 55% said they find it difficult to “support a family while making a living”. 53% felt unsafe at work due to exhaustion after the arrival of a new baby, and 47% said they’d struggled to support their partner.

84% of tradespeople polled believed paying NICs while not receiving any paternity support was unfair. 80% agreed that giving fathers a decent amount of properly paid paternity leave would prove politicians’ support for working families, and 69% would be more likely to vote for a party that offered fathers, including self-employed dads, that support.

George Gabriel, co-founder of The Dad Shift, said, “Self-employed dads have every reason to be furious. This is about decent working blokes who pay their way and don’t get even the measly support they should be entitled to. If Labour want to prove they’re on the side of working families they can start by closing this loophole, one which leaves self-employed dads shelling out £1.1 billion a year without a penny back when their babies arrive.

Every parent knows how expensive it is when a child arrives. Making self-employed dads shell out over a grand in NICs while they choose between heading straight back to work so they can provide financially or spending the time they need with their new babies and recovering partners – honestly, it takes the piss.”

Graeme Downie MP said, “This government’s mission is to support the next generation, giving them the opportunities they need to create a positive and successful future for our country.”

“This survey isn’t only about dads spending more time at home. It’s about creating flexibility that better reflects modern families, helping mums return to work and driving the economy through thriving families. Part of that is supporting the increasing number of Dad’s who want to play a more active role in raising their children.”

“Supporting the next generation won’t happen without action. The government must step up to accelerate these shifts, supporting mums, dads, and children nationwide.”