Labour woos families

A big increase in paternity pay is being planned for Labour's election manifesto, it is revealed today.

Ministers are also planning to extend maternity pay beyond the current six months to cover up to a year and force firms to give working carers more flexible hours.

The package was disclosed by Trade Secretary Patricia Hewitt in a co-ordinated drive to swing attention from Iraq to domestic policies.

She admitted that the war had diverted the Government from "bread-and-butter" issues and that Labour's second term in power had "lacked the same strength" as its first four years.

She said the Government had appeared " completely absorbed in Iraq" and added: "What the public is saying very clearly is, 'get back to the issues that matter to us'."

Although no official decision has been made on the parentfriendly policies, Ms Hewitt told the Financial Times: "I have no doubt that a centrepiece of the manifesto will be a package of support for hardworking families and we will be campaigning on that."

The move to roll out manifesto ideas in advance of next week's Labour party conference follows Tony Blair's speech to the TUC last week in which he promised to make domestic issues his priority.

Paternity leave currently stands at a maximum of ?102 a week for two weeks, but the new proposal would take it to 90 per cent of earnings, in line with statutory pay for mothers.

Only one in five of the 400,000 men entitled to it each year bother to claim at the moment, and ministers hope the change would lead to greater take-up.

Business leaders, however, warned that the proposals could "cripple" small firms.

The plan to extend maternity pay is even more controversial. At present, mothers can take six months off with full statutory pay plus another six months unpaid. Ms Hewitt said there was a clear wish for "some or all" of the extra six months to be paid as well, but gave no details of whether the burden would fall on employers or the state.

The third "priority" measure is to give employees who are caring for a disabled or elderly relative the right to work flexible hours, in line with rights given to mothers.

But the British Chambers of Commerce said the plans, especially extending maternity leave, "could have a crippling effect on many small businesses who have just a small number of staff ".

And the CBI said the proposals could trigger "a significant increase in absence".