How I am navigating the motherhood penalty

Finance Dee explains how she is navigating the Motherhood Penalty and offers useful insights on how to address it

The Motherhood Penalty is a term which refers to the systemic disadvantages faced by mothers in the workplace including pay, benefits, and career advancements.

Approximately 250,000 working women with children under four years old leave their jobs due to the struggle juggle between work and childcare according to the Fawcett Society.

As a mother who has just started my second maternity leave in less than two years, I feel this is a particularly close subject to my heart.

Upon reflection of the ‘motherhood penalty’ on my personal life, I do believe that both of my pregnancies and maternity leave have negatively affected my career advancements in terms of promotions, decent raises, and even bonuses. Maybe a coincidence, maybe not!  

However, below are a few tips which I am implementing to do my very best to not let these young mothering years have a long-lasting impact on my career. 

Remember your value 

It is extremely easy to fall into the trap of believing you’re less efficient or useful than colleagues who are peddling ahead in their careers without breaks due to motherhood. However, we really do all have different strengths, and we (mothers) are not less than because we took some time out to raise the next generation.  

In fact, after my first maternity leave, I found that I had a new appreciation for work, improved efficiency, and a refreshed approach with a fresh lens. 

Instead of focussing too hard on perceived shortcomings, remember you have the job you do for a reason, and there are things you bring to the table that perhaps someone else could not. Self-doubt can prohibit your ability to advocate for yourself for career opportunities and advancements, so you must keep the value you add at the forefront of your mind! 

Shrink the pension gap! 

In the UK, the pension gap between men and women remains quite large to this day. The 2024 gender pension gap report found that on average women retire with a pension pot of £69,000 compared to £205,000 for men. The report goes on to conclude that career gaps due to the likes of childcare lead to an average ten-year career gap resulting in a £39,000 loss in pension savings. 

The amazing thing about pensions during maternity leave is despite your reduced pay and therefore reduction in pension contributions, your employer still has to contribute the same amount to your pension whilst you’re on maternity pay.  

Depending on the type of pension scheme you are enrolled in, such as salary sacrifice, your employer may still have to make pension contributions even in periods of no maternity pay.

Therefore, it is best to check with your employer how your pension contributions will be treated during your maternity leave. At the very least, do your best to not reduce your personal pension contributions during maternity leave so your pension can still continue to grow at a decent rate. 

Keeping-In-Touch (KIT) 

I think a really useful tool for mothers on maternity leave is to make use of the up to 10 keeping-in-touch (KIT) days available to us. These days allow you to reconnect with work and get paid in full on top of your maternity pay without stopping your maternity leave.  

It will be up to you and your employer to decide the use of your KIT days. One way I maximised this time was by completing a 3-day intensive training that added a great boost to my CV and provided me with additional skills I could put into practice upon my return to work.

I loved the feeling of being able to achieve something for my career whilst on maternity leave, which in turn also benefitted my employer. 

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