Campaigners warn of a ‘financial freefall’ and call for urgent policy reform as figures show impact worsens with subsequent births
Mothers face a ‘substantial and long-lasting’ reduction in earnings when they have a child, analysis from the Office for National Statistics has highlighted.
The study found mothers in the UK earned on average £1,051 less per month five years after having their first child – a 42 per cent drop compared to their pre-birth income. This decline was partly down to a reduction in employment.
The long-term earnings penalty equates to a total loss of £65,618 on average over the five years. The financial impact worsens with each additional child: mothers lose a further £26,317 after their second child and £32,456 after a third – bringing the total lost to more than £124,000 for mothers of three.
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“It’s not a gentle decline – it’s a financial freefall,” said Rachel Grocott, CEO of Pregnant Then Screwed.
“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 for five years after having their first child. It is completely abhorrent.”
Sharpest income drop in first year, but effects persist
The ONS study, which tracked individuals aged 18 to 60 who had a child between April 2014 and December 2022, found that the most dramatic income drop occurred in the first year after childbirth, largely because of parental leave.
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However, earnings remained consistently lower throughout the five-year period following birth. A separate report from Investing in Women highlighted how many women struggled to return to work after taking time off because of inflexible employment structures and limited part-time roles.
Nicole Goodwin, joint managing director of AllBright everywoman, said the ONS figures suggested women were still not receiving enough support to re-enter the workplace after having children.
“Too many are forced to make difficult choices because of the rising cost of childcare, a lack of flexibility or confidence challenges when returning from maternity leave,” she added.
“Without meaningful intervention, this fuels the so-called motherhood penalty and contributes to the persistent gender pay gap.”
Paid employment probability drops
Beyond wages, the probability of being paid in employment also fell sharply. The ONS data showed a 15 percentage point drop 18 months after a first child – and the decline persists for at least five years.
The pattern repeats with subsequent births: mothers were around 10.5 percentage points less likely to be in paid work nearly two years after a second or third child.
Alice Martin, head of research at the Work Foundation at Lancaster University, said the data exposed the “stark and unfair reality” for working mothers.
“The government is aiming to ‘make work pay’ but women who become mothers face persistent and significant disadvantages in pay and progression,” she explained. “They are forced to trade job security and opportunities to manage early motherhood and ongoing childcare.”
Single parents hit the hardest
“This a prime example of how the world of work doesn’t work for mums – and particularly single mums,” said Vaila McClure, head of external affairs at Gingerbread, a charity for single parent families.
“Ninety per cent of single parents are women and the majority are working. This lost income is likely to be a key driver of the poverty that hits 43 per cent of children in single parent households.”
McClure added that some mothers were forced out of the labour market altogether, especially when their children were young. “We need to see a cultural shift where flexible work is the default. Single parents are valuable to our economy and allowing women to access jobs that fit their skills and experience can only be good for our economy,” she said.
How can HR help?
Goodwin emphasised the critical role HR plays in addressing the motherhood penalty. She said initiatives such as returner programmes, coaching and mentoring can significantly support women returning from maternity leave by helping them to rebuild their confidence and ease their transition back into the workplace.
“At the same time, offering childcare incentives, such as pre-tax vouchers or support towards nursery fees, alongside genuine flexible working options, can prevent talented women from stepping out of the workforce,” she added.