Definition
A statutory payment available to eligible parents who choose to share leave after the birth or adoption of a child. Shared Parental Pay (ShPP) allows parents to split up to 37 weeks of pay between them.
UK Context
ShPP is governed by the Shared Parental Pay and Leave Regulations 2014. The rate is set annually by the government and matches the flat rate of SMP. Employers can reclaim ShPP from HMRC in the same way as SMP. ACAS provides guidance on handling SPL and ShPP requests, and employers cannot refuse a valid request.
Best Practices
- Provide clear guidance to expecting parents on how ShPP works alongside SPL, including worked examples
- Consider enhancing ShPP to match any occupational maternity pay scheme to promote gender equality
- Train line managers on the SPL notification process and their obligation not to discourage uptake
- Ensure payroll systems can handle concurrent SPL and ShPP periods for both parents
Frequently Asked Questions
How much is Shared Parental Pay?
ShPP is paid at the statutory flat rate (currently £187.18 per week for 2025/26) or 90% of average weekly earnings, whichever is lower. Unlike SMP, there is no initial 6-week period at 90% of earnings.
Can both parents receive ShPP at the same time?
Yes. Both parents can take SPL and receive ShPP simultaneously, provided their combined total does not exceed the available pool of weeks. This allows both parents to be off work together if they choose.
Why is take-up of Shared Parental Pay so low?
Take-up is estimated at just 2-4% of eligible families. Key barriers include the low flat rate of pay compared to full salary, cultural norms around paternal caregiving, complex eligibility rules, and a lack of employer communication about the scheme.