Does anyone know who pays mat. pay if company goes bust?

[Blundermum]

Hi, can anyone help me on this because as usual the government "help" pages are next to useless!
My Neice has been working for the same company for two years now and is 22 wks pregnant.
Her boss has just informed her that the company is struggling and if things dont pick up she may not have a job come Jan/Feb time.

Obviously she is entitled to SMP but who pays it if the company goes bust?
I have been told that its HMRC but I want to find out for sure as shes really worried about this and I dont like to see her stressed out...theres plenty of time for that when the bundle of joy arrives!

Anyone been here? I would appreciate any advice.

[DrNortherner]

She will get Materinty Allowance paid by the government.

I had to claim this as was made redundant when 6 months pregnant!

[DrNortherner]

here

[Blundermum]

Thanks so much, you've just told me what a solicitor that apparently deals in mat. rights as a specialty couldnt!!!
Oh dear.
Very much worth the huge sums of money that they are paid then

[flowerybeanbag]

I'm afraid it's not as simple as that. Maternity Allowance is a separate benefit available to people who are not eligible for SMP. If your niece is entitled to SMP she is not entitled to MA. There's actually no reason her employer shouldn't be able to afford to pay it her, as they claim it back from HMRC anyway, but in the event they go bust, she can claim it from HMRC. See govt leaflet section here.