The report, Working Better, says gender-neutral parental leave, which grants equal access to parental leave for both parents, should be in place by 2020.
But the Commission says the change should be brought in in stages, with a paternity allowance established by next year, and a move to "parental" rather than "maternity leave" when a baby reaches six months, by 2012.
The report says that the changes would make the UK's arrangements similar to those in Europe, and enable "genuine choices for men to take up caring responsibilities".
Sally Gimson, director of communications at the Family and Parenting Institute, welcomed the report's proposals. "Parents tell us that they want to spend more time with their children, especially when they are young," she said. "Fathers often complain that they find themselves working even harder after the birth of a child, when they would prefer to be spending time with their new baby."
According to a survey undertaken for the report, just over half (55 per cent) of fathers have taken paternity leave. More than two thirds (69 per cent) said it improved the quality of family life, and more than half (56 per cent) said it led to them take a greater caring role for their children.
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