To spread maternity payments over 12 months or not.

[Toastytoes1]

Hi, just looking for some budget tips really.
My first baby is due in March; I work for the NHS so am lucky to have a fairly generous maternity pay package. When I’ve done the maths myself I believe I should be getting about £1100 on average over 12 months. I do have the option to spread out my payments evenly over 12 months rather than the default of 8 weeks full pay, 18 weeks half plus smp, 13 weeks smp only then nothing for 13 weeks. However, I believe that the payments aren’t actually spread evenly as its only the omp that the NHS can spread and not the smp, is that right? So you do still end up with a variation over the months.
I’m therefore thinking it might be better to just take the pay as it comes and ensure I save the money from the start to cover the end period.
So if I do that I know I need to budget as though I only have £1100 which will leave me with about £150 spending each month after my half of the mortgage, bills, groceries and fuel for the car.

My worry is I’m a bit of a spender at times and if I don’t stick to my budget and overspend when I have more money coming in I’ll not have enough to cover the last 3 months and as I already know I’ll be going back to work full time, I really want to take the full year with Baby.

My husband will of course support me as well but he’s self employed and his income can be quite erratic so he can’t cover more than his half of the mortgage and bills every month; we have £3000 emergency savings just in case there are a few months where the savings need to top up the joint account whilst he’s waiting for a payment to come in so I don’t want to use those savings unless absolutely necessary.

I have gotten so much better with my spending and we’ve paid off all our debt except for one business loan in my husband’s name (and mortgage obviously) over the last two years so I do think I would prefer to rely on saving the money myself but was just wondering if other people had any tips on how I can stick to my £150 spending budget every month for 9 months in order to make sure I have the same for the last three months?
Or should I anticipate the spender in me being let loose when I don’t have the structure of my usual work life to stop me and just ask for my payments to be spread ‘evenly’?

Thank you

If you end up going back early will that mean you lose out? As in, if you decide you want to return after 8 months off, is there any facility for you to be paid the outstanding sum to get you to what people would normally get after 8 months or do you just lose it?

I took the mat pay as it came with DC1, then spread it out over 12 months with DC2. Was MUCH better spread over 12mo. I cant remember exactly what the figures were for the first bit, but HR worked it all out for me on a spreadsheet so I could faff about with it to see what ot looked like over say 40 weeks compared with 52. Tou need to give them notice to go back early anyway so they just readjust the figures. I ended up adding on a bit extra to mine and they adjusted it half way through the year.

Speak to HR, get them to send you the monthly figures and ask them about the first 8 weeks. It's a standard request in the NHS

You definitely wont lose out if you go back early.

In terms of budgeting, we had 8k reserves with DC1 and it went pretty quickly when both the boiler and the car went. Sad times. We had fuck all reserves with DC2 so spreading my income really helped with budgeting

I work for a local authority so the package wasn't as good as yours, but I highly recommend spreading it out. I liked doing it that way. It's the same money whatever you do, but spreading it stops you overspending at the start.

I work for the NHS and took my maternity over 12 months last year. I have a breakdown of the 9 month and 12 months figures if you want me to DM you? Obviously your banding might be different but it'll give you an idea.

I ended up going back early as I changed jobs within the NHS and they gave me some money back. I preferred the spread over 12 months, I was a bit short at the beginning but then it was much better.

I think you need to look at the tax and way other benefits might be calculated and whether you do any KIT days. Also what happens to pension. For example, my childcare vouchers are covered when I’m on 0 pay but if I had money in that would be salary scarified straight out so 9 months pay would be better for me than 12m. I think there are some NI benefits to not spreading it too.

Hi crembrule, could I get a copy pls? I earn around 28,000.

From a financial perspective, unless they’re going to pay you interest, it’s pretty much always better to get the money sooner rather than later. But form a psychological perspective, lots of people have a hard time not spending when the money’s there.

Can you have them deposit it into your savings, not your current account and then have an automatic transfer of 150 each month? That way it’s in with the savings you already “don’t want to touch”.

If you’re trying to get more in touch and savvy with your budgeting then keeping a spreadsheet of how much you’ve received, how much is coming and how much that gives you per week until planned return might help you resist the urge to spend or correct quicker if you do over spend early on.

It sounds like you’ve done a lot recently to improve your approach to money which bodes well for handling it if you get it paid as early as possible. But using a tool like having your employer spread it isn’t a bad thing at all if you are worried you might not manage so well. The key is knowing yourself and not setting yourself up for failure.