Parent-friendly workplace policies could unlock more than £10 billion for the UK economy

• Allowing parents to work flexibly to support childcare needs could unlock more than £10 billion for the UK economy and bring 440,000 parents back into the workforce, according to new research from Vodafone.

• Parent burnout is real, with more than half (52%) experiencing it within just one month of being back in the office after family-related leave.

• Flexible working is vital in navigating the transition successfully, with over three-quarters of parents (78%) reporting better work-life balance when using flexible working policies, and 68% seeing improved mental wellbeing.

• Vodafone’s family friendly policies include: leading family-related leave*; paid leave for parents and carers; and the opportunity for any employee having a baby to work 80% of their hours for 100% of pay, benefits and holiday, for the first six months back at work.

New polling¹ and modelling² commissioned by Vodafone UK suggests family friendly policies that provide new parents with flexibility for unplanned time off could unlock over £10 billion in annual productivity gains for the UK economy,

In an additional significant economic boost, 440,000 parents of young children could potentially return to the workforce if family friendly policies were more widely available.

For new parents, support in the initial months after returning to work is vital for navigating the transition successfully. The research highlights that over three-quarters (77%) of new parents report feeling ‘burnt out’ following their return to work, with over half (52%) feeling this way within the first month.

Family friendly policies such as Vodafone’s – which allow employees (including non-birthing parents) to return to a four-day working week with full pay for the first six months after family-related leave – are shown to have a positive impact.

Three-in-four parents (78%) report better work-life balance, while 68% report improved mental wellbeing. However, 77% of parents surveyed were unaware of these types of enhanced policies before the study. Upon learning about them, 91% indicated they would take advantage if they were offered.

For those needing to take unplanned time off to care for a dependent in the case of sickness or an emergency, Vodafone also offers an emergency care leave policy for parents and carers, with up to five days of additional paid leave**.

The research found that companies also benefit from offering flexible working to parents. Managing the juggle between childcare and parenting helps parents ‘hack’ transferrable skills that benefit the workforce, including improved multi-tasking (43%), time management (36%), and patience (36%). In addition, half of parents felt flexible working policies ‘supercharged’ greater productivity for them at work.

Despite this, the study also highlights a continued ‘parent penalty’ where parents felt limited progression opportunities, with 45% not applying to new roles because of the lack of flexible working options, and one-in-three (35%) saying the balance of work and caring duties made it difficult to progress in their careers.

Vodafone UK has partnered with online parenting community Peanut to highlight the benefits that inclusive working policies can bring parents and employers, particularly those that support parents’ transition back into the workplace after maternity, paternity, adoption or shared parental leave.

Together, they are encouraging UK employers to consider how they support parents who want to progress in their career – without sacrificing wellbeing and work-family balance.

Nicki Lyons, Chief Corporate Affairs & Sustainability Officer, Vodafone UK, said: “Better productivity, improved time management, an 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.

“At Vodafone, we’ve seen firsthand how parent friendly policies can help employees thrive both at work and home through our 80/20 offering, which allows parents to work 80% of their hours for 100% of their pay, benefits and holiday, for six months. That’s why we’ve partnered with Peanut to share our experiences and encourage UK employers to put extra support in place through this transitional period.”

Michelle Kennedy, CEO, 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, which is 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.”

¹ By One Poll conducted between 17 – 24 February 2025 of 1,000 UK-based parents of Under 5s, and Peanut polling of their online community between 21 – 26 February 2025.

² Development Economics, February 2025.* Vodafone employees having a baby (birthing parent), adopting a child, or becoming a parent through surrogacy, are entitled to paid leave for the first 39 weeks and the remaining 13 weeks will be unpaid.** Employees will be paid their normal basic salary for up to the number of days in their standard working week; e.g. if they work five days per week then their allowance would be five days per calendar year.

Notes to Editors

Vodafone UK employee case studies

Derek, a Talent Acquisition Manager, shared that the policy was a key factor in his decision to join Vodafone. He explained that it allowed him and his wife to better balance childcare responsibilities, enabling them both to pursue their careers “in equal measure.” Reflecting on his experience, he noted how attending baby classes – often as one of the only dads present – made him realise that “men don’t always have the opportunity to spend time with their children in the early months.”

Rebecca, a Security Assurance Manager, described one of the biggest challenges of returning to work: transitioning between “parent mode” and “work mode.” She found that working 80/20 helped her maximise productivity within her available time, allowing her to be more present at home with her partner and children, while also reducing childcare costs.

Rhiannon, a Service Manager, made use of the 80/20 policy having returned from family-related leave after having both of her sons, and commented on the positive culture set by leadership around the work-family blend. Rhiannon said seeing her boss signal “I’m a human and I have children and a life outside work” by blocking out time in her diary for school drop-offs was so important, while noting the positive impact of having senior people in the business who are “open about working flexibly”.

Methodology

Polling – OnePoll

The polling was conducted by OnePoll, with 1,000 respondents (parents of children aged 5 and under who took parental leave for over three months) in the UK between 17.02.25 and 24.02.25. All participants are double opted in to take part in the research and are paid an amount depending on the length and complexity of the survey. OnePoll are MRS Company Partners, corporate membership of ESOMAR and Members of the British Polling Council.

Economic Modelling

The economic modelling figures are estimates that are derived from a model developed by and an analysis undertaken by Development Economics Limited. The model builds on data and findings yielded by the OnePoll survey. Apart from the survey findings, the modelling of potential effects utilised appropriate data sources sourced from the Office for National Statistics (ONS) including demographic and economic activity data from the Labour Force Survey, the Annual Population Survey, and the Annual Survey of Hours and Earnings. Additional data used in the analysis includes data from the Annual Business Survey conducted by the ONS.

The 440,000 potential new parent returners number was derived from taking the proportion of working age people who are economically inactive due to family caring commitments and who look after younger children (around one million people), and then applying the findings from the Peanut survey that 80% of those surveyed said they were inactive ‘because of their children’ and 55% could have been tempted back to work with a Vodafone-style flexible policy. The £11 billion boost comes from OnePoll insights on the amount of unplanned absence from work that new parents amass and what this costs in terms of lost output when applied to the total population of working parents in the UK who have at least one child aged four years or younger.

Additional insights used in the assessment were obtained from a desk-based review of academic and non-academic literature, including previous surveys and reports commissioned by Working Families and the online community Peanut.

Polling – Peanut

721 members of Peanut’s community in the UK responded to a survey between 21st February and 4th March. Of the respondents, 78.2% were mothers, 19.7% were pregnant, and 2.1% trying to conceive. Analysis was conducted in-house by Peanut’s team.

About Peanut

Peanut is the first online community to help women throughout all stages of motherhood find their village. Whether you’re navigating fertility, pregnancy, motherhood or menopause, the app provides access to a community who are there to listen, share information and offer valuable advice. Created for and by women, Peanut is a safe space to meet women nearby and have conversations across meaningful topics from sex and health to IVF, pregnancy, first years, midlife and beyond. With over 3.5M+ women using the app and recent accolades including Fast Company’s Most Innovative Companies 2023, TIME100’s Most Influential Companies 2022 and Apple’s Trend of the Year 2021, Peanut has become a coveted destination for women looking to connect, ask questions and find support. For more information about Peanut, please visit www.peanut-app.io