Would love to have a baby but what about the bills?

[meljayne]

Hello

My partner and I would love to have a baby but i'm concerned how on earth we would pay for everything.

I know you get maternity pay but how much is this roughly a month? Also do you get any other help while on maternity leave and what about once the baby arrives. Im really concerned but would love to have a child before it's too late. I've just turned 30 and would love to find out.

Thanks

Melanie Jayne

Well it depends on if your working surely? It'll be in your maternity policy if you are?

Can't comment if your not working because I am unfamiliar with the benefits you get

AAhh! I just wrote a long reply, but lost it!

Maternity pay depends on your employer, but is likely to included some element of Statutory Maternity Pay, which is about £125/week. Check out Direct Gov and Entitled To websites for details. There is also Child Benefit, Working Tax Credits and Child Tax Credits.

I will be going on maternity leave with my second child at the end of the month. First chidl was not the financial shocker I thought he might be, even though I went back part time and lost 40% of my salary straight off. When I was on maternity leave with him, I arranged just to pay the interest on the mortgage and now overpay when we can to redress the lower repayment repayments. I am not sure if you can get Housing Benefit when you are on SMP if you are renting.

DS (3 yesterday) doesn't not really want for anything, and hand me downs, eBay, Mumsnet, NCT Nearly New Sales and Charity shops make life easier.

We don't go out half as much as we used to, and after one trip, have decided that foreign hols are not worth the effort (wimps!) so have holidayed in England and Wales mostly in the last 3 years.

i actually still manage to save a bit and don't have any debts apart from the mortgage. We do have a very low key lifestyle though, but that is deliberate.

If it helps you compare you situation to mine, which is manageable, our joint income is about £55K/annum (before tax), and outgoings are about £1700/month now, including childcare for 3 days a week.

Don't think about the numbers - just do it - everything else will fall into place.

Good luck

Hi

I've had a look at my works maternity policy and I would get the first 6 weeks at 90% of my current pay.

The next 20 weeks would be basic Statutory Maternity Pay. So if that's £125 a week - that's £500 a month. Do you get taxed on SMP? or is the £125 after tax?

When thinking about having a baby, the maternity pay element is a drop in the ocean. It's afterwards that it gets expensive. If you're both planning to continue working afterwards, any child-care costs have to be factored in ... and if one decides to be a SAHP, then there's the loss of salary to consider. You can run a few 'what ifs' through benefit checkers like this one to see if you'd qualify for WTC or CTC top-ups. Whilst 'just do it' is nice in theory, it helps to understand what you're letting yourself in for and plan accordingly.

You do get taxed on SMP, it is counted into your overall annual earnings.

And really, your outgoings do go down with a new baby, as you are too tired to do much else.

Agree with cogito. I think you're looking at this the wrong way round.
Sure, your pay while on maternity leave will drop.
But its the longer term thinking you need to do. If you don't return to work, then you'll be losing one whole income. If you do return to work, you'll have to factor in your childcare costs. The maternity leave is temporary- its the longer term decisions you need to think about.

Not trying to put you off btw- all of us with kids know how you feel. We waited until we had a small buffer of savings to see us through my reduced pay on maternity leave. Then when I returned to work we just had to cut back on all our 'extras', such as meals out, holidays, expensive haircuts etc. Its just impossible to be paying childcare and continuing your life as 'pre- children. On the other hand, you'll find your priorities change, you just get on and live within your new parameters. Babysitters don't come cheap either so you probably wont want to go out as much anyway. Thinking about how you will afford it all is worse than the reality imo