MPs on the House of Commons Social Security Select Committee warned that unless this step was taken, take-up of leave entitlement could be low.

This was most likely to be the case among lower paid workers who did not qualify for income support and among fathers who would lose out financially, they said.

The MPs did not suggest a figure for the payment. But if 30% of fathers took up their leave entitlement at a rate of £60-a-week benefit, there would be an annual cost to the Treasury of £95m, according to their report.

If 70% of mothers could claim a benefit of £60 it would cost £175m.

New rights

The right to parental leave is being established under a European Union directive, which comes into force in the UK from 15 December.

Both men and women will be entitled to up to three months off work when they have a baby or adopt a child.

Low income parents will be eligible for income support but other families will not receive payment, under existing plans.

The MPs' report said: "We remain concerned that large numbers of low-paid workers will be unable to claim their entitlement to parental leave because they will lose out financially if they do so."

Their report added: "It is clear to us that if parental leave is unpaid, take-up among fathers will be particularly low."

The MPs also pointed out there was a danger that small firms might lose out if there was no state payment for workers, because they would be unable to compete with big companies able to afford to be generous to their employees.