RETAIL union Usdaw says new maternity rights are good news for retail.

It says extending maternity leave for working mums will sustain growth in Britain's booming retail sector.

The union rejects fears that extending maternity pay will ruin businesses pointing out that employers get at least 92 per cent of the cost of statutory maternity pay funded by the government.

John Hannett, Usdaw general secretary, said: "The reality is that companies get most, if not all, of the costs of supporting a new mother paid for by the government.

"Many small businesses who say they could go under because of this proposal get even more help with 100pc of the costs being paid by the state plus an extra five per cent on top to meet the cost of running the scheme."