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Flexible working for parents could unlock £10bn for UK economy

by Benefits Expert
24/03/2025
Father and new baby, paternity leave, parental leave
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Supporting parents with flexible working policies could boost the UK economy by more than £10 billion a year and bring 440,000 parents back into the workforce, according to research commissioned by employer Vodafone.

The survey found that more than half (52 percent) of parents experience burnout within a month of returning to work after the arrival of a new child. But 78 percent report better work-life balance when using flexible working options.

Vodafone said family-friendly policies have a measurable positive effect on employee wellbeing and productivity and pointed to its own 80/20 scheme as an example. Under the scheme employees can work 80 percent of their hours for 100 percent of their pay, benefits, and holiday for the first six months after returning from parental leave. Almost seven in ten (68 percent) parents reported improved mental health due to flexible working options.

However, awareness of such policies remains low. More than three-quarters (77 percent) of parents surveyed were unaware of enhanced parental leave options, but once they knew about them 91 percent said they would take them up if offered.

Vodafone also provides up to five days of paid emergency leave for parents and carers that need to manage unexpected childcare issues.

The employer added that it sees the benefits of supporting working parents as they bring additional transferable skills from being a new parent. For example, improved time management (36 percent), patience (36 percent), and multi-tasking (43 percent).

Support for working parents is critical, the employer said, as 45 percent of parents admitted to not applying for new roles due to limited flexible working options, and more than a third (35 percent) said balancing work and childcare responsibilities hindered their career progression.

Nicki Lyons, chief corporate affairs and sustainability officer at Vodafone UK, said: “Better productivity, improved time management, increased ability to multitask—our study shows just some of the skills working parents bring to an organisation. But businesses have a responsibility to ensure the right support is in place for parents returning to work.”

She said the employer’s own experience of these benefits is what lead them to partner with Peanut, an online community supporting women’s health, to share what they’d learned. The partnership aims to encourage more UK employers to put extra support in place through this important transitional period for new parents.

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Michelle Kennedy, CEO of Peanut, said: “Returning to work after parental leave is one of the hardest transitions parents have to make. They are expected to just snap back – to their job, career ambitions and the people they were before – when in reality, everything has changed.

“The support to make this transition easier is still rare – that’s why policies such as Vodafone’s 80/20 matter. Parents bring immense value to the workplace, and as the study shows, essential skills don’t disappear when you have a baby; they sharpen. When you support parents properly, everyone wins – families, businesses, and the economy alike.”

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The podcast from Benefits Expert, the title for HR, reward and benefits professionals.

Seasoned professionals examine the challenges and innovations in today’s employee benefits, reward and HR sector. Every episode, they will unbox a key issue and unpack what it really means for employers and how they can tackle it.

The regulars are Claire Churchard, editor of Benefits Expert; Carole Goldsmith, HR director at the Royal Horticultural Society, and Steve Herbert, consultant and rewards & benefits veteran.

Benefits Unboxed – Hybrid work: reality versus rhetoric
byBenefits Expert from Definite Article Media

Return-to-office mandates are a topic that’s generating plenty of heat in the media, but how closely do the headlines match workplace reality? 

In this episode, one of a three-part series of 10-minute podcasts, hosts Claire Churchard and Steve Herbert discuss data that shows remote or home working is on the rise.

We look at what this means for HR, from balancing employee flexibility with business needs, to ensuring benefits packages remain fair and accessible. We discuss the pinch points, and the opportunities, in building the new normal of work.

Benefits Unboxed – Hybrid work: reality versus rhetoric
Benefits Unboxed – Hybrid work: reality versus rhetoric
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Benefits Expert from Definite Article Media
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