F1 | Budget cap: the inclusion of maternity leave is controversial

As part of the ongoing efforts to define a new Concorde Agreement, with documents having recently been distributed to the teams, talks have begun on how the budget cap will fit into the overall picture.

The current system, which has a cap of $135 million until 2026, appears to be working best despite controversy over Red Bull’s spending violations.

However, there have been issues relating to its scope, with Williams successfully leading a push to increase spending limits for less successful teams.

As part of the discussions on the new Concorde Agreement for 2026, it appears that there will be a revised approach where, in exchange for increasing the limit to $220 million, more expenses will be included in the budget cap and will be reduced the list of exemptions.

So, for example, some of the caps on external capital spending will be removed and will flow into the larger overall spending cap, to give teams a greater opportunity to invest there if they wish.

However, Motorsport.com has learned that one of the major annoyances that emerged from the first 2026 budget cap proposal is the moving of some previous personnel-related exemptions into its scope.

In particular, the inclusion of maternity leave has caused some alarm over concerns that, with teams so focused on not wasting money that could go towards the performance of the cars, it could discourage competitors from wanting to hire women.

This is because if staff took paid maternity leave, teams would have to hire replacements in the meantime, resulting in additional costs.

Concerns about including the above exemptions in the budget are such that they will almost certainly be moved outside its scope as working groups push for changes to the original proposal.

According to a source familiar with the matter, the end result would be a reduction of the budget to about $215 million, leaving out items such as maternity leave and holidays.

While not going into detail, Mercedes team principal Toto Wolff said at Imola last weekend that there were clear points that needed to be changed from the proposals presented.

Toto Wolff, Team Principal and CEO, Mercedes-AMG F1 Team, on the pit wall

Photo by: Sam Bloxham / Motorsport Images

“I think we’ve got the basic terms of how Formula 1 sees the next five years,” he said. “There is some good news, there are some things we will discuss – pros and cons. And, of course, there will be negotiations.”

“But we want to achieve the same goal: to grow this sport. This means that the final result grows and if the final result grows, the teams benefit and so does the sport.”

Red Bull boss Christian Horner added: “It’s the same old discussion: the teams want more and the promoter wants more. But what we have works relatively well and I think the foundations are all relatively solid.”

“I think as Formula 1 continues to develop and evolve and grow, there will be areas where we can refine the deal. But I think the fundamental basis will be fine-tuning rather than revolution.”