Planning on 14 months maternity leave with help from Universal Credit - am I missing something?

[Preggerzzzz]

First-time poster - and very soon to be first time mum - so please bear with…

I’m due to start maternity leave in May. My pregnancy wasn’t planned and I’ll be a single mum, although baby’s dad will be paying something each month as well.

Originally, I was concerned that I would have to resume work after 6 months as that’s when my occupational maternity pay will stop but, after countless calculations on benefit calculators, I’ve come to the conclusion that 14 months will be, dare I say, quite comfortably doable. I’m concerned that I must be missing something pretty crucial though as so many MN threads on this subject suggest that the loads of mums in similar situations have to rush back to work! I realise we all have very different circumstances but if anyone who has been in a similar situation could share their experience, I’d be extremely grateful.

Here’s a snapshot of what I’ve estimated my circumstances to be while on mat leave…

For context, my normal monthly bills (inc food) come to circa £1600pm. I rent my home.

First 6 months - UC £224.42, CB £91.65 = £316.07 + £1900 (full pay from work) = £2,216.07
6-9 months - UC £907.52, CB £91.65 = £999.17 + £658.53 (SMP only) = £1657.70
9-12 months - UC £1085.47, CB £91.65. CTS £76.18 = £1253.30 need £400pm to top up
Then 7 weeks full pay annual leave and accrued bank holidays

Thanks in advance!

How much is your rent?

So from months 6-9 that leaves you £57 disposable income, and month 9 onwards you need £400pm top up?
Doesn't sound doable to me.
Nappies will be c£40 a month, same for formula if BF doesn't work out.

Also child benefit rate is £21.80pw from April, so that's £87.20pm not £91.65 as you state.

Is there anything you can cut from your expenses?

Where are you going to make up the £400 shortfall?

I find lots of things are possible on maternity pay but you need to be realistic you are currently planning on being 400 short on your main expenses.

Have you allowed for any costs relating to the baby here? Nappies, wipes, formula, sterilising stuff, clothes, baby groups?
Any savings as backup if an unexpected expense comes up?
What options for childcare have you planned? Many places require payment up front. Also you may need some of that annual leave if baby is unwell and can’t go to nursery for example. I would hesitate to use it all unless you have to.
Is your employer likely to agree to the holiday time being added on?
They can’t deny you the maternity part but can request accrued holiday to be taken at their convenience.
Is there any potential impact from being off for so long in one go?

Just some questions to think over, not saying you are wrong but there are many factors once you have a baby around that you just wouldn’t even consider beforehand.

How much leave does that leave you with for the rest of the holiday year? On starting nursery babies are often ill, and you will need to collect them. Dont leave yourself too short.

If rent plus all bills come to 1600, I'd guess you live somewhere fairly cheep, hence perhaps the numbers working for you and not others?

Do you have the ability to save 1200 between now and baby being 9 months old to get you through months 9-12?

What is CTS? How many bedrooms does your property have and what is your local allowance for rent?

You do realise that energy bills are going up from April then up again in October?

So if you are on a fixed tariff that ends a some point this year, you need to allow for a minimum of double your energy costs to cover the winter months. Though as you will be in more you will spend more on energy than this.

Also if your work pays you in arrears, you need to have a months income to get you to work and pay for childcare in advance for when you go back to work.

Finally as you are going to be a single mum with no partner, you need to consider your mental health with being off work so long with a small human. If you know a few adults e.g. retired people who will be around then you will have people to interact with on some days otherwise you will be on your own.

I took 12 months. Started claiming UC after my 90% pay ended- 6 weeks. I took the advance so I didn’t have to wait 5 weeks for the first pay.

Months 9-10.5 just had UC then annual leave for 5 weeks. Was allowed to use my accrued leave at the end of maternity. Saved the rest for the rest of the year.
I put money aside and stopped my pension contributions for one year whilst pregnant to save up for the unpaid months.
It’s doable but that joy when you go back full pay is short lived after paying childcare lol

Childcare costs have to be paid up front before you can claim the up to 85% back so factor that in with your savings.

Firstly, thank you all for the responses so far! I wasn’t sure I’d get any.

So, to answer some of the questions raised,

My rent is £675pcm.

I’ve worked child benefit out as a monthly amount, not 4 weekly and also didn’t realise it’s going up in April.

To cover the shortfall in months 9-12, I’m planning on saving £400pm minimum in the initial 6 months. And, the £1600 budget is assuming I spend £400pm on food for me and baby which is quite an overestimation as I don’t think I’ve ever spent that on just me, even including wine!!

My annual leave runs from April-March so I won’t be using any prior to my maternity leave starting, so when my mat leave ends next May I will have a full 26 days to take from my 2022/23 allowance, and will still have the whole of my 2023/24 allowance for when I’m back at work again.

Also, sorry for missing this, CTS is the council tax support I’ll get for the last 3 months as I won’t be earning anything.

Do the MSE budget planner. I can almost guarantee there will be things not included in your budget. Most people don't think about the non-monthly costs, but that money has to come from somewhere.

Christmas, birthdays, haircuts, car maintenance, MoT, home maintenance, boiler service, clothes, you'll want life insurance, etc.

Fill it in and be totally honest about costs.

www.moneysavingexpert.com/banking/budget-planning/#planner

on top of the increases in cost for energy, factor in that you will use more if you are no longer out at work/ keeping a tiny human warm enough.

I might be wrong but I didn't think you can claim UC and any maternity pay..

It may be doable, but it depends on any savings on your current cost of living you may have. Your transport costs may be cheaper without work, you may well drink and go out less.
Extra baby costs:
lots of Washing: a load a day when they are small and vomitty.
Pram (new pram/pushchair when you discover you hate the one you bought and it doesn't fit through doorways, fit in car boot, fold for the bus) , clothes, baby classes (to keep you sane, baby can do without).
Childcare: nursery deposit, settling sessions etc.
Baby's father should be making a decent contribution.

Make sure you leave yourself holidays for the first year you're back at work, when baby is at nursery. Your child will get sick straight away and youll need lots of time off.

My nursery also required a £250 deposit upfront which we get back when we leave.

Will you be receiving maintenance from the child's father. What about clothes, milk (if needed) Nappies, wipes and all the other things a bay needs that won't be in your expenses at the moment?
Can you even claim universal credit while off on mat leave just because you don't want to go back to work?

I didn't know you could claim UC whilst off on maternity leave, tbh.

Unless you get uc now I'm not sure you would while on full omp, After twelve months your employer does not have to keep your job open. Is omp conditional on returning to work (not just using accrued leave) for a period afterwards?

workingfamilies.org.uk/articles/maternity-pay/

Smp will come off the Uc?

I'd be cautious about using your ALinonebog chunk. You'll need a break at some point in the year and if baby gets poorly you'll need time off with the.

Keep as much annual leave as you can for when you go back. It may well be relentless sick and snotty bugs for months.

Yes I think it's doable. I did similar. Ended up a single parents into my mat leave and actually ended up more comfortable than I would have if I had stayed with my partner as UC covered so much to top up my pitiful mat pay. And then when I was using annual leave after 12 months point my earnings went up. The hardest but was 9-12 months but I had already saved for those being hard and as I mentioned thanks to UC they weren't as hard as I was expecting

Just check how much you have in savings before you apply because anything over £6k and your UC award starts being reduced.

Thanks again for the replies.

Tbh, it came as quite a shock to me to learn that I could claim anything during the first 6 months that I’ll be on full pay. I didn’t think that £1900pm would constitute a low income, but apparently once it’s me and baby I am entitled and, at my income level, the taper won’t deplete the UC award entirely. But, again, as per my original question, I may well be missing something!!

Thanks for all those that have, quite rightly, pointed out the cost of actually having a baby. I suppose for nappies etc I’d figured £400pm for food and groceries would cover this. How much do nappies cost per month?!

Also, I am very conscious of the energy price hike in April. In my workings out I’ve overestimated my monthly energy bills at £150pm (almost double what I currently pay) though I fully appreciate I may be dreaming thinking that these will be so low…

I will have to resume work after my maternity ends although my work have to allow me the opportunity to take any leave I have accrued during my absence prior to going back.

Oh, and I’m very much hopeful for a contribution from baby’s dad. He’s assured me there will be one but hasn’t committed to a figure so for now I’m erring on the side of caution and assuming I’ll be the one paying for absolutely everything.

Also, my outgoings sums are all very much based the essentials and not the nice-to-haves.

I'd triple your power bill unless it's recently hiked uom. Price increase plus more time at home plus more conscious of house being cold