Our thinking

Nordic Nurturing

26 July, 2024

For many women in the UK and beyond, parental leave poses significant challenges. Lower-income families suffer the most, facing reduced earnings and extended work absences that exacerbate gender inequality. So what can we glean from the world’s most gender-equal nations?

Our Nordic neighbours provide valuable insights. Iceland recently issued a groundbreaking EUR50 million gender bond. This investment aims to raise money to fund affordable housing for low-income women and to enhance parental leave payments. By encouraging both parents to utilize their equal right to paid leave, Iceland sets a precedent. Additionally, Sweden now allows parents to transfer up to 45 days of parental leave to grandparents (90 days for single parents), further supporting families.

Both Iceland and Sweden rank in the top four of the World Economic Forum’s Global Gender Gap Index. Despite their progress, they persistently pursue absolute gender equality and economic empowerment for women. The UK should take heed. Our costly childcare system is among the most expensive in the developed world, often forcing mothers to reconsider working. Against this backdrop, over half of grandparents provide some form of childcare, saving an estimated £96 billion in nursery and childminder fees. Addressing these issues is crucial to closing the gender pay gap.

The UK government has a long way to go in tackling the fundamentals of our childcare system to be fairer and more supportive. Taking valuable learnings from Iceland and Sweden is a good place to start.

By Alice Railton