Study shows impact of motherhood on earnings

Having children leads to a “substantial and long-lasting” reduction in mothers’ earnings, according to new research.

A study by the Office for National Statistics (ONS) found that five years after the birth of a first child, monthly earnings were lower on average by 42%, or £1,051 per month, compared with earnings one year before the birth.

The earnings loss persisted to the end of the study period, covering England from 2014 to 2022.

The total earnings loss over five years amounts to an average of £65,618 following the birth of a first child, an additional £26,317 following the birth of a second child, and £32,456 following the birth of a third child, said the ONS.

Part of the cut in earnings was said to be the result of a reduction in employment.

The biggest loss in earnings was found to be after the first birth, then sustained reductions in earnings for five years after each birth, said the ONS.

Alice Martin, head of research at think tank the Work Foundation at Lancaster University, commented: “Today’s figures present the stark and unfair reality for working mothers in the UK.

“Government is aiming to ‘make work pay’ but women who become mothers face persistent and significant disadvantages in pay and progression.

“They are forced to trade job security and opportunities to manage early motherhood and ongoing childcare.”

Rachel Grocott, of campaign group Pregnant Then Screwed, said: “This new data confirms what mothers have known for decades: the moment you have children, your pay nosedives.

“This is the price that mums are paying – 42% of their salary- for five years after having their first child. It is completely abhorrent, and the more children you have, the deeper the drop.

“It’s not a gentle decline—it’s a financial freefall resulting in financial loss of over £100,000 pounds for a mother of three children.

“If men experienced this kind of penalty for becoming parents, we’d have fixed it years ago. Instead, women are punished for caring, sidelined at work, and expected to just absorb the cost. Is it any wonder that women are second-guessing having kids today? The cards are stacked so heavily against them that being able to afford kids is becoming a luxury.

“We need urgent reform – childcare that doesn’t bankrupt you, parental leave that makes sense, and workplaces that stop treating motherhood like a liability and instead flex their roles to help mothers to navigate the infamous juggle and start to tackle the motherhood penalty once and for all.”

Sophie Catto, joint managing director of AllBright everywoman, a collective of women in business, said: “Too often, women don’t receive the support they need when returning to work after having children, yet many of the solutions are surprisingly simple.

“The cost of childcare is a huge barrier. Employers that offer benefits such as pre-tax childcare schemes or subsidies make a real difference in enabling women to re-enter the workforce.”