To be panicking about money whilst on maternity leave?

[CobaltRose]

Hi everyone. I'm 21 and ten weeks pregnant, and am already panicking about how we're going to manage financially once I go on maternity leave! This pregnancy was very much unplanned (contraceptive failure), before people start harping on about being responsible....

Anyway... This'll be long as I tend to waffle!

Currently, I live with my fiancé in a privately rented 1 bed flat. He is only contracted to work 12 hours a week but has NEVER only worked 12 hours in the whole four years he's worked there. He works, on average, 40 hours a week. Sometimes more. He earns around £1200 a month (sometimes more depending on how many hours he's worked) which is enough to cover our rent and utility bills. He normally has around £150-£200 left over once everything has been paid, which he puts into a savings account. I understand we're lucky in that respect, as some people don't have anything left over at the end of the month!

Now, as for me, I only work part time as I'm currently a full time student. I only work ten hours a week and am paid £71.25 a week. I only have to pay for our broadband (£24 a month) and food (around £50 a week). As I'm currently still a student I am in receipt of maintenance loans (£2300 every three months). I have been saving this up, but gave my parents £1000 as my dad was made redundant and they were really struggling with money. This was in early January before I moved in with my partner and before I discovered I was pregnant.

However, since discovering that I was pregnant I have decided to defer my studies for a year. I'm still planning on completing my first year (which will finish end of April) so will receive another loan payment in April, but that will be it until I return to my studies next year. I currently have around £2500 in my account, which was from selling my car. So, once I receive my next loan payment I will have just under 5k in my account.

On top of this I'll still be working part time, so will continue to get £71.25 a week in wages. However, I am terrified of how our financial situation will change once I go on maternity leave!

I'm not due until late October, and am planning on working for as long as I possibly can, so am not planning to go on maternity leave until September. Because I don't earn enough to qualify for SMP, I'd have to be in receipt of MA, which will only be around £64 a week for 29 weeks and £27 for 14 weeks! Better than nothing, but still not a lot. Because of this I'm not planning on taking the full year off, as I think we really wouldn't be able to afford it. Thankfully we've got grandparents who are able and willing to look after baby on the weekend, so I am seriously considering returning to work after six months, much as I'd like to take the full year off. I'm also considering taking a part time job during the week as well as the weekend, as my fiancé has one day off during the week where he could look after baby.

That's all well and good once I'm ready to go back to work, but I'm really concerned about how we'll manage financially in the months that I'm not working.

Am I being unreasonable for thinking that we could probably manage on OH's salary and the money I have saved up in my account for the few months that I'm on maternity leave? I know we'd get child benefit once baby is born too, but it's only £20 a week. I go from thinking 'Yeah, we'll be fine! We wouldn't be able to afford luxuries but we'll all be fed and warm which is the main thing!' to 'Aaaargh! How on earth will we survive!' I know we'd probably be entitled to some kind of benefit but I don't really want to go on them if we could manage without.

Perhaps I'm just being too anxious. Any advice would be greatly appreciated!

Thanks

It will be tough, but it's tough for most people when a new baby arrives, especially an unplanned one. You are both on really low incomes, but still more than some people, and you have some savings.
But most people cope somehow.
Speak to someone to make sure you and your partner are claiming all the assistance you are entitled to and good luck with your new DC.
Hope you get back to finish your study too.

You'll automatically be entitled to child benefit (I don't think you mentioned that) which is about £80 a month

I didn’t have a year off with any of mine-we were in our twenties/thirties with good jobs, maternity pay and being home owners with savings-we still couldn’t afford it! Don’t think it’s necessarily something you must do. I went back to work with my first when he was 17 weeks old-it was hard but we coped. A girl at work had a baby last year and went back after 4 months for financial reasons-so don’t feel bad about it.

I would still see what benefits you are entitled to-it might be helpful to know.

What is your degree course in? Will it lead directly to getting a job? How much of the course is left?

Just reread - oops you did mention it, sorry lol

It sounds to me like you should be ok financially. Your fiancé is currently able to save money, so there's slack there if you need it. You'll probably find that being on maternity leave you spend way less though. I know I was stuck to the sofa watching box sets for quite a while

However in your shoes I would complete the first term of second year before going off. You should then be able to take a year off your studies and return to that point a year later. Seems to make no sense to stop in April when you won't be heavily pregnant and restart when baby is still tiny and so dependent.

Have you got a decent amount in savings if you put towards it every month? Could you dip into that whilst you're off and then replace it when you go back to work?
If you are deferring your studies for a year could you work more hours until the baby is almost due? That will give you more money in the mean time so you can try and save some more, and maybe put you over the threshold for smp because that isn't calculated until later in your pregnancy.

I completely understand being anxious, it's a very difficult time. You've got a lot to get used to with having a child and don't forget all the hormonal changes will affect how you feel too. Try not to worry too much, but I know it is difficult. In terms of things for baby, get second hand where possible because it can get expensive.

Have you checked to see if you'll be entitled to tax credits once the baby is born? I have no idea btw if you will or not but you should definitely check.

@Bumdishcloths, yes, I mentioned child benefit. But I'm not surprised you didn't see it in the wall of text

I suppose we might be entitled to universal credit, but I've read that they strongly encourage you to look for work, or to look for better work/more hours if you already work. I'd be exempt from that as I'd have a child under one, but as my partner is only contracted to work 12 hours a week he would probably be asked to look for better work, even though he always works 40+ hours. I've heard of people being sanctioned for not attending appointments due to work, which would make us even worse off.

Can I even apply for universal credit when I'm on maternity leave? I've never claimed any benefits before so don't know how it works.

You can apply for uc whilst on maternity leave, I did. Could you dp maybe speak to his employers about increasing his contracted hours? Then he wouldn’t be pressured to look for work if you claim. Obvs don’t do this if they might be dicks about it.

For 29 weeks of MA plus child benefit, you will be earning more than your wages currently. I'm struggling to see the problem. Most people I know haven't taken the full year due to finances. With my first I took 12 weeks, 2nd 17 weeks and 3rd 8 months (this was with an income 3 times the national average - I still couldn't afford the full year). As someone who had their first whilst still at uni, believe me when I say you'll be fine, you'll manage and you'll make it work. Good luck!

You should see if your University has someone who can advise you about your rights/benefits/support you will be entitled to. Also depending on the demands of your course, the Uni may have a crèche available to help reduce childcare costs when you do go back.

The main advantage you both have (apart from your youth and greater energy levels!), is that you both sound really financially sensible.

Would also suggest you look for local NCT groups. NCT is expensive and I am not suggesting you need to join, but they do run fantastic Nearly New sales Nd you should be able to pick up some great second hand bargains for baby clothes and equipment.

Best of luck!

@CurlyBlueberry, my second year doesn't start until September 2018. I'm due in October, so would have to take time off to have baby anyway. If I defer and start second year in September 2019 baby will be almost a year old. Makes more sense to me to have the baby, then return when he/she is almost a year old, rather than starting second year, only being there for a month, then having to leave anyway to have baby.

@Redlocks28, I'm studying Bioscience. There are a lot of lab jobs available to graduates, but the course is three years long.

The only difficulty with working extra hours in my current job is that it's a ten minute drive away. Neither me nor my partner drive. I was learning (hence having a car) but sold it once I found out I was pregnant as we wouldn't be able to afford to run one. Right now my mum is happy to drive me to work on Saturdays, but she works the rest of the week. I suppose I could get taxis, but that's an extra expense. I am considering getting a job closer to home though (we live dead in the centre of town surrounded by shops), but that would have to be after baby is born as I don't think any job would hire someone who is already pregnant!

Thanks everyone

You're not due until October...as soon as you finish your studies the next few weeks bump your hours up or get another FT job...you could save a few thousand extra in the next six months.

Sorry CobaltRose, I was thinking there'd be an April - June term. If there isn't, then yes your plan makes sense! Good luck with it all

You might be able to get temp work whilst pregnant. Legally someone can't refuse to hire you whilst pregnant.

Breastfeeding will save money when baby arrives. Ask your midwife if there's a local breastfeeding support service to help you get breastfeeding established.

@JackietheBackie, my university actually has a nursery on campus, which is incredibly helpful. Once I return to uni I'd receive a parent/carers allowance on top of my maintenance loan, which would go towards childcare costs.

After reading all of your replies I don't feel quite so panicked. It's gonna be tough, but having a baby is tough anyway! Ah, @PlumpandPlain, you are actually correct. I didn't quite realise that in my fog of panic and anxiety

No you're not wrong to worry about finances. I'm bricking it too as I'll get statutory maternity which won't cover my basic outgoings by itself. I'm also single so only 1 income (and I'd kill for a 10 minute commute - mines an hour each way!)... but you and your DF CAN do this, you have each other and with the benefits you're entitled to and some belt tightening you'll be ok. If you decide to change (you have time) they can't deny to employ you cos your pregnant and you don't even need to tell them till you have 15 weeks left x

MA should be more than that. You may qualify for universal credit once baby arrives. If you can increase your hours asap you may meet smp criteria assuming you were in the same job when you got pg.

@LIZS, according to gov.uk, MA is 90% of your weekly earnings for 29 weeks. 90% of 71.25 - £64.

I've been in my current job for three years, so no worries on that score.

You sound sensible, you will be fine. I think you should get a new job as soon as possible, ideally one that you could manage during late pregnancy eg not standing too long. I imagine that at 10 weeks that you’re not showing yet and you don’t need to tell them until you’re ready or there are H&S concerns. I understand why you might not think it’s fair to take a new job while pregnant but think of your family first, you could work for 4-5 months before the baby arrives which would give you a big financial cushion.

Maintenance loans are for you! Not your parents! Could your dad repay you the £1,000?

Don't be put off looking for work in the meantime if that would help you - you probably aren't showing yet and you're not obliged to tell them you're pregnant! Also I think you sound like your head is screwed on so you could probably get a retail job temporarily where they are used to a high staff turnover.

It will be hard but you can manage, it is scary though!

@healthyheart, I know that, but they were in dire straits (were facing the prospect of losing the house, and I still lived with them at that time). I had the money to give, so of course I was going to help them. In regards to paying me back, no, he probably couldn't. At least not right now. They're in a better position now my dad is working again, but still living payslip to payslip. They're owed money themselves (lent my brother £1500 over a year ago and they're still waiting to get it back).

This was an unplanned pregnancy. Have you considered a termination?

@NotTheFordType, I'm pro-choice so did consider it. But obviously decided against it. I fail to see how your comment is particularly helpful in my situation, though. I thought it was fairly obvious from my OP that I am continuing the pregnancy. [hmmm]