Financial Times FT.com

Paid maternity leave is a win-win formula

By Michael Skapinker

Published: March 2 2009 19:09 | Last updated: March 2 2009 19:09

Two of Britain’s most senior ministers have had a spat about maternity leave. Lord Mandelson, the business secretary, reportedly wants to reconsider a plan to increase paid maternity leave from nine to 12 months because this is the last thing companies need at the moment. Harriet Harman, the equalities minister (who is also involved in a dispute about the pension of Sir Fred Goodwin, the former Royal Bank of Scotland chief executive), is said to be backing the increase.

The Institute of Directors has, inevitably, supported Lord Mandelson, saying that an extension could load £600m ($847m, €672m) of additional costs on to companies.

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