Add thelocalreport.in As A Trusted Source
Although finding out you’re going to have a baby can be a joyous time, it can also bring great anxiety – especially from a financial perspective.
Because not only does adding a new life to the family entail additional expenses, it also means that the mother may have to be on maternity leave from work for a longer period of time, which means a lot less money will come in.
from jackie spencer Wealth and Pension Servicesa government sponsored organization that runs money helper To provide free and impartial financial guidance, explains that Statutory Maternity Pay (SMP) is available to women who earn at least £125 per week and have worked continuously for at least 26 weeks for their employer.
The SMP is 90% of your average weekly earnings before tax for the first six weeks, followed by either £187.18 or 90% of your average weekly earnings – whichever is lower – for the remaining 33 weeks.
Additionally, employers may also offer increased maternity pay along with SMP.
And self-employed women can get up to 39 weeks of maternity allowance at the standard rate of £139.58 per week instead of SMP.
Such benefits clearly mean less money coming into the households of new parents, and of course, into maternity action. 2025 cost of living survey on maternity leave Of 1,176 pregnant women and new mothers, only 3% of respondents did not worry at all about money during their pregnancy or maternity leave, 17% ‘struggled a lot’ to buy things they needed, and 55% borrowed money or used credit cards to support themselves financially during maternity leave, resulting in debt.
“The majority of workers in the UK rely on funding provided by the government to support themselves during their maternity leave.” Judith says dennisHead of Policy at Maternity Action.
“Our research shows that women are being pushed into poverty as a result.”
So, is it necessary to save in advance to cope financially during maternity leave?
Dennis says: “Women often save to help ease the situation, but it is not enough – pregnant women and new mothers are falling into debt, going without food and other essentials. And many return to work earlier than they would like because it is not possible to make ends meet.”
and Holly Mackey, Founder and ceo of boring money The financial advice website says: “I think any couple planning a family needs to start saving as soon as possible as the current level of parental leave in the UK is very low.
Get free fractional shares worth up to £100.
Capital at risk.
terms and Conditions apply.
Advertisement
Get free fractional shares worth up to £100.
Capital at risk.
terms and Conditions apply.
Advertisement
“After the first six weeks, maternity pay goes up to a maximum of £187 per week. That doesn’t go very far. Even if you’re saving on things like travel, lunches and going out, the cost of a newborn soon adds up – especially for first-time parents who may be nervous about buying all the latest ‘must-haves’ from baby shops.”
McKay says from the data pregnant again bad Suggesting that more than four in 10 mothers took just 12 weeks of maternity leave after the birth of their most recent child, they believe this is largely due to financial needs.
Here’s how experts think parents can make maternity leave work financially…
1. Be prepared
Spencer says it’s important to start by understanding how much money you’ll have coming in when mum goes on maternity leave, whether that’s from SMP or maternity allowance.
And she emphasizes: “If you’re employed at an organization, remember that each workplace will have a different policy, so make sure you talk to their human resources department to understand if they offer advanced benefits.”
2. Discuss finances before the baby is born
Don’t wait until the baby is born to get your finances in order, Mackey warns.
“It’s important that couples have conversations about money before the baby arrives, and take time to work out expectations about how you will both handle parental leave and the financial and practical pressures that a newborn can bring.”
And negotiations may include shared parental leave. “This is something couples may also want to consider,” suggests Spencer. “It allows eligible parents to share up to 50 weeks of parental leave and 37 weeks of pay.”
3. Don’t be pressured into buying
There is no set amount that parents should save before starting maternity leave, as it depends on what they earn in the first place. However, if they don’t spend their hard-earned money on unnecessary baby items, they’ll be able to save a lot more, and Mackay says: “First-time parents can feel the pressure to buy every latest gadget, outfit and pram, so it’s important to keep as much of a financial buffer as possible – as is having an understanding and diplomatic friend who can gently remind you that it’s okay to have the latest outfits for the kids. Not there.”
4. Prospective parents looking for a job should think about more than just the salary
Although it may be too late if you’ve already had a child, Mackey points out that if parents are looking for a job in the future, it’s worth considering maternity and paternity benefits rather than just salary.
“Working parents who are planning to have a family should consider the benefits package as well as the core salary when applying for a job,” she says. “For example, a generous parental leave policy can have a much bigger impact on your family than an extra £2,000 in salary.”
5. Get advice
There’s plenty of advice available online and in person on how to deal financially and what to save for during maternity leave, and Spencer emphasizes: “Making sure your finances can handle a new member to your family can be difficult but there is support out there.”
She suggests putting your rough budget into MoneyHelper baby cost calculator“This can help you figure out how much the cost of everything from your child’s bedroom to travel items might add up to,” she says.
Using the free MoneyHelper can also help baby money timelineWhich indicates when you can start claiming free prescriptions, when you should be able to take paid leave, and when you should start claiming allowances and grants.
“Caring for a newborn can be an expensive, tiring, and time-consuming task, but it can also be enjoyable,” says Mackey. “Planning and saving as much in advance as possible is a really smart idea and will take some of the pressure off in those first weeks when you’re surviving on very little sleep and caffeine.”