Fathers offered three months' leave

Trade unions welcomed the move as a big step towards making work family friendly, while employers complained it would create an administrative nightmare.

The Department of Trade and Industry said that up to 440,000 men could benefit form the reform, but independent analysts disputed that figure, saying many fathers could afford to leave their job for several months to live off the £106 a week paternity leave the state is offering.

The Bill would also increase flexible working arrangements for parents and other carers, and raise the statutory limits on redundancy pay and on awards for unfair dismissal. Other proposals, welcomed by employers, would simplify maternity rules and increase to two months the notice someone on parental leave must give to say whether they are going to return.

Mothers are now entitled to six months' paid maternity leave, followed by six months unpaid time off, but fathers are allowed only two weeks' paid paternity leave. Alan Johnson, the Trade and Industry Secretary, indicated paid parental leave would be increased to nine months and the Government planned to raise that further, to one year, by the next election.