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!

To those who say we should just be grateful for the amount of SMP we get, why?! At some point it's been a political decision to pay that amount, and, like all political decisions, it can always be changed if enough people feel strongly about it. We don't have to feel grateful if we feel it's unfair or too low.

Its free money to stay at home with your child at someone else's expense - why would anyone not be grateful? I never got full SMP in either pregnancy, got MA the first time and then 90% of my pay which was around £100 a week the second time, and managed easily. My DH is only an average earner and no we don't live in a cheap area either. We were just realistic about our lifestyle and changes we would need to make.

I love how its the high earners complaining about how low SMP is and the people who really needed it saying it was great.

I didn't have a problem managing on SMP personally. But I completely disagree that women should just shut up and be grateful. Universal Credit is also "free money", same with disability allowances, child benefit, etc etc - doesn't mean people can't question their fairness or call for change.

But of course higher earners are going to feel it the most, regardless of savings and attitude toward money.

I earn approx 50k per year and to go from nearly £3k per month to £600 has been tough. We saved the money I wouldn't be earning & a little more; and I get an enhanced package with work that gave me 3 months full pay but then straight down to SMP. I am taking 33 weeks maternity and then my 2019 annual leave, giving me 10 mo this altogether. I had to stop work 6 weeks before my little one was born due to some complications; meaning I only get 9 months off with my son. I genuinely don't think this is enough - I go back to work in 3 months and he is still so dependent on me for absolutely everything, the thought of going back is almost ruining the time we have.

I've left it too late now to push back my return to work so just need to suck it up. Basically, OP, I agree with you. I think it should be salary matched, to an extent. How this work would for the economy I've got no idea but that would be my preference. I've worked extremely hard and moved up in my organisation over 19 years; I should be paid what I am. I am not at all saying lower paid people don't work as hard as me, just that I deserve my salary, and would be a better employee on my return to work if I had got to spend just a few months more with my son. Money and logistics at work just mean I can't really afford to.

It definitely should go as a percentage. I went on maternity leave the same time as one of my colleagues. She did a completely different job and worked two days a week. I worked full time. We got paid the same in SMP. Her wages didn't really drop when going on maternity - my wage was around 4-5 times what she got. I don't think she qualified to pay tax on her wages whereas I paid hundreds of pounds a month in tax, sometimes going into the thousands. Don't get how that's fair. No ones asking for free money but when you've been paying into the system since the age of 16 and never claimed a penny I don't think it's wrong to be pissed off at the situation.

Haven't read the full thread but just to clarify a couple of points:

If one of you earns over £60k a year you do not get child benefit (look at pension contributions if you're close to the limit as upping your pension contribution could bring you slightly under in some instances). You can claim it and then pay it back but the simplest thing to do is just tick on the form that you don't wish to receive child benefit. Filling in the form this way still protects your NI contributions for state pension.

Your employer has to offer KIT days, it's part of maternity legislation and you can have up to 10 during your maternity leave without affecting SMP.

@haveuheard I think it's because the high earners have a lifestyle at the moment that is about to be drastically different whereas the lower earners wouldn't feel it as much. As @meuh said, we have a right to express our concerns should we want to. I believe it should definitely reflect your earnings. Why should I have to take such a pay cut to have a child who essentially is going to be part of this countries future? If none of us had children then this country would go to shit.

@turnthebiglightoff I'm so sorry that you're going back in a few months, hopefully the transition will be easy for you both . Thank you for understanding my point, I do think it is harder for those who have a comfortable income to then take such a pay cut. We have a savings that'll help, but then what if we have a family or house emergency? There's always going to be a what if but we have already said how we are going to cut back and prepare.

@Mummyh2016 you've hit my point on the head, thank you for your contribution!

@Pepperwand yes unfortunately my partner does earn over that! Thanks for your advice about the form, that's helpful.

90% of your basic salary OP

I’ve only taken 5 months both times as couldn’t afford more

“You don't really tend to spend much on mat leave so I think it is definitely doable.”

Apart from your outgoings I’m £2k a month short of basic bills on SMP only

Definitely make sure you claim child credit but you just declare that your partner earns more than the threshold so they don't actually pay you the money. Claiming child credit means you get NI contributions and if you end up not working for a period of time, then this adds to your eligible years for your state pension. If you don't claim and you end up not working for a while, this will reduce the amount you'll get in your state pension.

I think it’s fairly fortunate to earn over the CB threshold, I do and can’t say I’d rather have a pay cut and get £18 a week instead. Does depend how far over the threshold you are though

Definitely make sure you claim child benefit but you just declare that your partner earns more than the threshold so they don't actually pay you the money. Claiming child benefit means you get NI contributions and if you end up not working for a period of time, then this adds to your eligible years for your state pension. If you don't claim and you end up not working for a while, this will reduce the amount you'll get in your state pension.

There are a few countries in Europe where the maternity pay is higher but for a much shorter time, like Holland and Switzerland. We spread a similar amount over a longer period. Personally I prefer that, but in the absence of any increase in state funding it might be better to give women more options about how it is split. So if eg you just want 4 full paid months you can have that instead of 9 at £600.

I think the thing with the threshold that is annoying is just one of you has to earn over £50k. So two people can both earn £49k each with a household income of £98k and claim it, or one person can earn £60k and the other earn £5k and you wouldn't be eligible at all (as in our case). Surely it would be better to base it on household income as a total? Although I suppose that would be more of an administrative burden for HMRC....

The child benefit threshold that is.

It is ridiculous. Totally undermines the entire principle.

no I don’t think so. The principle is to get everyone working. The government is better off with 2 citizens working at £49k than one at £52k

You’re making the mistake of thinking the government need to make it advantageous to you. They don’t. They just want as many people working as possible

Well you see, the government have made it advantageous to me. My household get full CB, even though if our total income were distributed differently amongst my spouse and I, we wouldn't. And it's possible to qualify for CB whilst one of you earns too little to pay tax and NI. You could even
be getting childcare subsidy for that too! Some two earner setups make more money for the state than one earner and one SAHP but they certainly don't all.

yes unfortunately my partner does earn over £60,000

Says no one irl ever

But that’s great for the government too sesame. Particularly in the example used above of x2 earners on £49k where the government is getting substantial tax and NI contributions from both tax payers and their employers

It is in the example of 2 x 49k yes. In another example of 1 x 63k and 1 x 8k with the maximum childcare help claimed, the second worker is costing the state by working. That's the point: some instances of two income households bring in more money to the pot and others do not. It depends.

There's also the point that this applies to single parents too. When a single parent on 61k gets nothing and two parents on 49k each get the full amount, that makes the system look an arse.

@Oneborneverydecade lol it's not unfortunate but you know what I mean!