SMP

[MoaningMyrtle96]

Posting for traffic here.

We are due in 2020 and trying to work our finances.
How much did you get whilst on maternity leave? I have just read that after the standard SMP they'll also deduct tax and national insurance too. And what happens if you take a full year, you're not given anything at all for the remaining 2 months?

I completely understand having a child is your own decision but why is SMP so low? Most families have both parents working prior to birth to have enough income and then when one is off work to care for the baby you then get a measly £148 a week!

AIBU to be frustrated with how little SMP actually is?

I get SMP as i wasn't working in my job long enough (an extra 3 weeks before falling pregnant and I would have got it!!)

You only get paid for the first 9 months, nothing for the last 3 months if you choose to take a year.

IIRC i got a lump sum of just over a grand as my first payment, and then I've had around 550 a month since then. Some months I've had 600ish though, but still pretty crap. My last payment should only be around 300.

Whilst it is low, it's not exactly a surprise or hidden information. If you can't afford a year off you don't take it. If you can, you save up before to cover the time with no money. Don't forget you still accrue holiday pay.

SMP is the government minimum so check if your employer offers more - some do.

The first part of SMP (the higher rate) is worked on an average of earnings during an 8 week period in the run up to the expected birth so it depends on your earnings. Some people are fortunate in that if a big bonus falls within the relevant period it jacks up their SMP.

YANBU it is low unless you have a decent employer.

@Okki I never said I couldn't afford a year off but wanted some clarification on some things. We have savings and are adding then until our baby arrives so we are comfortable.

@familycourtq although my company is good in some aspects, maternity pay it is not. It's a male dominated industry and it does show. We just get the standard SMP.

@Greywalls12 thank you for that insight, that is really helpful!

Smp is 39 weeks , last 13 unpaid if you take a full year. You do accrue paid leave while off though.

@MoaningMyrtle96
My industry is very male dominated too and the SMP is rubbish - didn't get any full pay - 6 weeks @ 90% and then 12 weeks at 50% - I might work with all men but I earn 3 times my DH salary so had to go back to work when the 18 weeks were up

I think SMP should be % of earnings based for longer than 6 weeks - we had just enough in savings to cover the half pay we missed out on but that was it

it never ceases to amaze me the number of people who only look into SMP once they are already pregnant.

I changed jobs to go to an organisation who paid 6 months full pay, then i did 3 months SMP and then 4 weeks annual leave so i had 10months off. This was all planned well before we even started ttc so we could save to help through the bad 3 months.

SMP being low is not a suprise.

OP, have you realised how crap parernity pay is yet?

Yeah it is pretty crap :(

Just to pick up on what you said about tax and national insurance - on SMP you will fall under the thresholds for any tax or NI to be paid so don't worry too much about additional deductions from it.

I had 6 months full pay, 3 months SMP and then 3 months of zilch.
I think SMP is just 9 months of about £148 a week? Mine used to vary each month e.g. 5 week month v 4 week month etc.

I think SMP is fine. Its your responsibility as parents to be to make sure you save and plan.

When I was looking for a new job a big factor was that my old job paid statutory only.

The payments are crap, but SMP is a known factor that unfortunately has to be considered. At least it is something- its worse for parents who are forced to have one stay at home due to the cost of childcare, as then they get absolutely nothing.

@Lazypuppy I was aware what the costs were before getting pregnant, I just thought I could ask for clarification and also vent on how low it is.

My other half will not take paternity as he earns a very healthy salary so he would take annual leave instead should I want him to.

Thanks for your assumptions.

Jesus wept.

I just wanted to vent on how poor it is. I'm not saying we can't afford a baby or afford to live.

@WelcomeToShootingStars we have savings and are continuing to save. I wanted to vent.

OP you'll get child benefit as well which is about £20 a week I think. If one of you earns over £50k a year though its something like you claim it but pay it back.

why is SMP so low?

Because patriarchy. Men don't have the babies so they don't care about it, and they're the ones in Parliament.

@Tippety we looked into this but I don't think we'd qualify as my other half earns significantly over the threshold. I didn't realise about the paying it back though - good to know. Thank you!

@Tableclothing it's a mans world after all!

Yes it’s poor. Did you know if you have two part time jobs you get SMP for both?

@MoaningMyrtle96 it's worth checking out as although we didn't have to worry about the threshold, I remember seeing something. The government website says:

You can choose not to get Child Benefit payments, but you should still fill in the Child Benefit claim form. This will help you get National Insurance credits which count towards your State Pension.

Claiming Child Benefit also means your child will get their National Insurance number automatically shortly before they’re 16. They will not have to apply for one themselves.

So might be worth applying even if you don't request the payments, possibly easier than what I thought the process was of paying it back. SMP is low, but it's surprising the amount of bargains you can get for a baby.

@MoaningMyrtle96 it’s pretty rubbish SMP and compared to a lot of Europe the maternity pay in the Uk is very poor, as is paternity pay!

I’m lucky and get 18 weeks @ full pay, then the rest at stat mat. But I’m only taking six months off as we can’t afford anymore.

A lot of people I know have saved to be able to afford a year off.... jsut prepare yourself for ridiculous nursery fees once you are back at work!!!! You can’t win 🙈🙈

@Tippety fabulous! Thanks for this advice, this is really helpful.