Government should handle maternity pay, says IoD

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HM Revenue and Customs should take on responsibility for administering increased maternity pay, says the Institute of Directors.

The IoD said there should be an end to the practice of businesses having to pay statutory maternity pay up front and then having to recoup the money from HMRC.

Richard Wilson, the IoD's head of business policy, said: "If paid maternity leave is increased from six to nine months by April 2007 and probably to a year's paid annual leave by the end of the current Parliament, then it is essential that the burden of administering and paying Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay should be transferred from employers to the Inland Revenue.

"This arrangement would have the benefit of matching the increase in maternity rights with an easin...

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