Maternity payments
Maternity pay
If you're working and have a baby, whether you work full or part time, you have the right to receive Statutory Maternity Pay (SMP) as long as you meet certain conditions.
The maternity pay benefits you might get will vary depending on your circumstances. Usually you will claim either:
- statutory or contractual maternity pay from your employer
- or Maternity Allowance through Jobcentre Plus
Contractual (company) maternity pay
Your employer might have their own maternity pay scheme. Check your contract of employment or staff handbook, or ask your employer's HR department. Some company schemes require you to pay back some money if you don't come back to work. However, you must be paid at least as much as Statutory Maternity Pay (if you qualify), which doesn't have to be repaid.
Statutory Maternity Pay (SMP)
If your baby is due on or after 1 April 2007 you can get SMP for up to 39 weeks, as long as you meet the conditions. If your baby was due earlier than this then SMP is for up to 26 weeks.
If you have the right to receive SMP, you'll get it even if you decide to leave your job before you start receiving SMP. You don't have to repay it if you decide not to go back to work or leave your job whilst getting SMP. If you are employed you can choose when you want your SMP to start, this will normally coincide with your Ordinary Maternity Leave. Unless your baby is born sooner, the earliest SMP can start is 11 weeks before the week your baby is due.
How much SMP will I get?
If you get SMP, your employer will pay you 90 per cent of your average weekly earnings for the first six weeks, then up to £112.75 for the remaining 33 weeks (or 20 weeks if your expected week of childbirth begins earlier than 1 April 2007). You pay tax and National Insurance in the same way as on your regular wages. Your employer reclaims the majority of SMP from their National Insurance contributions and other payments. To qualify for SMP you must pay tax and national insurance as an employee (or would pay if you earned enough).
What happens if I don't qualify for SMP?
If you can't get SMP from your employer, you might get Maternity Allowance (MA) if you:
- are employed
- are self-employed and pay Class 2 National Insurance contributions or
- have a Small Earnings Exception certificate
- are not employed but have worked close to or during your pregnancy
The conditions are that you:
- worked (either on an employed or self employed basis) for at least 26 of the 66 weeks before the week your baby was due (a part week counts as a full week)
- earned an average of £30 over any 13 of those 66 weeks
The standard rate of MA is £112.75 or 90 per cent of your average weekly earnings, whichever is less. If your expected week of childbirth begins on or after 1 April 2007, it is paid for up to 39 weeks. If your expected week of childbirth was earlier than this then it is paid for up to 26 weeks. MA is not liable to income tax or NI contributions.
Other family benefits you may be entitled to
There are a number of additional benefits available to expectant and new mothers. These include:
- Child Trust Funds
- Sure Start Maternity grants
- Child Benefit
- free prescriptions and dental treatment, and
- Tax Credits
Whether you qualify for these benefits will depend on your personal situation.
What if my employer refuses to pay my maternity pay?
If you definitely qualify for maternity pay and your employer refuses to pay it, it will be treated as an unlawful deduction from your wages. It may also count as unlawful sex discrimination.
If you think you should get SMP but your employer disagrees, talk to them and explain your rights. If you have an employee representative (eg a trade union official), they may be able to help.
If this doesn't work, you may want to make a complaint using your employer's internal grievance procedure or apply to your nearest office of HM Revenue and Customs (HMRC) who can decide the matter. Applications to the HMRC need to be made within 6 months of your employer first refusing to pay you.
For an easy way to find out which benefits might apply to you and your circumstances go to What can I claim?
The Benefits Maximisation Service can provide personal advice on what you may be entitled to and help you make a claim. For more information go to Benefits Maximisation Service.
Disclaimer
Although every effort is made to ensure the information on these pages is accurate and up to date, it should not be treated as a complete and authoritative statement of the law.