New data from the Office for National Statistics (ONS) has revealed what many working mums already know: having children still comes with a serious career cost.

Five years after their first child, mums in England earn an average of £1,051 less every month than they did before becoming parents. The drop continues with each child – £313 less after a second, and £689 less after a third.

That’s a shocking “motherhood penalty” worth tens of thousands of pounds over just a few years.

Why does the motherhood penalty still happen?

Campaigners say the problem is a mix of bias, outdated systems and rising childcare costs. The gender pay gap has narrowed, but slowly. Most of the difference now comes down to what happens after women have children. The key issues are:

• Childcare that costs more than some mortgages
• Parental leave is still heavily weighted towards mums
• Jobs that resist flexible or part-time work
• Sadly, ongoing pregnancy and maternity discrimination

A staggering 74,000 new or expectant mothers are pushed out of their jobs every year due to pregnancy and maternity discrimination. This simply has to stop. (Source: Pregnant then Screwed and Women in Data)

An HR reality check for small businesses

For small businesses, it’s not always easy. When every hour matters, flexibility can feel like a luxury. In reality, fair and supportive policies aren’t just about compliance. They’re about survival.

‘Losing talented staff (and their knowledge) costs far more than adapting to flexible hours or improving communication around leave,’ explains Emma Clack of Heneom HR based near Stevenage and Welwyn in Herts. ’As new legislation expands redundancy protection for pregnant employees and parents on leave, being proactive is the safest and smartest move.’

Five HR steps for small businesses

1. Update your parental leave policy – make sure it’s legally compliant and easy to understand.
2. Train managers on maternity and discrimination laws.
3. Offer flexibility where you can – even small tweaks help.
4. Encourage shared parental leave to balance responsibilities.
5. Talk early and often with parents about their plans and support needs.

‘You don’t need a big HR department to make a big impact,’ says Emma. ‘Small businesses have the power to create workplaces that actually work for parents. Get your policies right, stay compliant, and you’ll not only close the gap but also build loyalty, trust, and a stronger team.’

Would you like to retain skills and close the pay gap in your organisation?

Talk to the friendly HR experts at Heneom HR. Contact Emma for an initial chat without obligation. Let’s protect your team from the motherhood penalty.