New mums taking time off work to look after their new babies could get an extra £617 from this month if they take full maternity leave entitlement.
The benefit Maternity Allowance rose by 10.1% on April 10, from £156.66 a week to £172.48, an extra £15.82 a week, or £616.98 over the full 39 weeks they are entitled to claim. Maternity Allowance is a benefit designed to help mums who don't qualify for Statutory Maternity Pay at work and the Department for Work and Pensions (DWP) expects the move will benefit around 40,000 mums this year.
Working mums who can claim Statutory Maternity Pay from their employer have also seen an identical 10.1% rise in payments to £172.48, although they may get less depending on their salary. Whether you get Maternity Pay or Allowance depends upon whether you are employed or self-employed and how long you have worked for your employer.
Read more: Month-by-month guide to when you can expect all of this year's cost of living payments
Statutory Maternity Pay (SMP) is paid by your employer for up to 39 weeks. You get:
- 90% of your average weekly earnings (before tax) for the first 6 weeks
- £172.48 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks
The statutory weekly rate of Paternity Pay is also now £172.48, although is only payable for one or two weeks. New dads will also get less if 90% of their average weekly pay is less than £172.48.
DWP Minister Viscount Younger of Leckie said: “We want every child to have a good start in life, which is why we are increasing our support for mums. This builds on our extension of free childcare for working parents from this summer, alongside an increase to the Universal Credit childcare cost cap and further help with upfront payments. These changes will help parents progress in work and earn a better living to support their family.”
What you need to know about your income if you are having a baby
Most working pregnant women are entitled to an income for at least 39 weeks, but how and what you are paid depends upon your circumstances. You can check out what you might get on the Government's maternity planner tool here.
Maternity Pay - what you need to know
To qualify for Statutory Maternity Pay (SMP) you must:
- Earn on average at least £123 a week
- Give the correct notice and proof you’re pregnant
- Have worked for your employer continuously for at least 26 weeks continuing into the ‘qualifying week’ - the 15th week before the expected week of childbirth
You can still get SMP if your baby is born early, is stillborn after the start of your 24th week of pregnancy or dies after being born
Maternity Allowance - what you need to know
You may qualify for Maternity Allowance if you:
Are employed but do not quality fior Statutory Maternity Pay
Are self-employed
Have recently stopped working
Take part in unpaid work for the business of your spouse or civil partner
You may still qualify if your baby is either stillborn from the start of the 24th week of pregnancy, or born alive at any point during your pregnancy but does not survive. You can start claiming once you’ve been pregnant for 26 weeks, and payments can start up to 11 weeks before your baby is due.
Paternity Pay - what you need to know
To qualify for paternity pay, you must:
- Be employed by your employer up to the date of birth
- Earn at least £123 a week (before tax)
- Give the correct notice
- Have been continuously employed by your employer for at least 26 weeks up to any day in the ‘qualifying week’
The ‘qualifying week’ is the 15th week before the baby is due. This is different if you adopt. If you lose your baby, you can still get Paternity Pay if your baby is stillborn from 24 weeks of pregnancy or born alive at any point during the pregnancy.
Shared Parental Leave
SPL allows working mothers to share a portion of maternity leave and pay with their partners to care for children from birth until their first birthday. For more details, see here
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