Poorer mothers get a raw deal from maternity pay and better off families receive too much, said Reform, the pro-market think-tank, as it called for a sweeping overhaul of the system.

As part of an overhaul of “middle class welfare”, current maternity pay – which is linked to previous earnings for the first six weeks – should be replaced with a flat-rate £5,000 payment payable to either the mother or the father, Reform said.