Maternity Pay will rise by nearly 40 per week in stages over the next two years under proposals in the new budget. The rate of maternity pay, currently set at 60.20 will go up to 75 next year and up to 100 from April 2003.

Working fathers have for the first time been given paternity leave from April 2003, for two weeks at the same flat rate as maternity pay.

Women will now be able to claim maternity leave for 26 weeks, increasing from the current 18 weeks.