How does everyone cope financially??

[Applemuncher]

I work in the private sector for a large company who has a pretty lame maternity policy. It's the basic 6 weeks maternity 90% pay followed by statutory.

I don't have any savings and have to keep paying the mortgage etc. so I just can't see any alternative but to go back to work straight away .

If I was to have 2 weeks off before my due date, then went 2 weeks over my due date then I would be going to work leaving a 2 week old baby at childcare . I'm frantically trying to save up so I can have a month off but even given my tight timescales it doesn't leave any scope for any illness in the latter stages of pregnancy (I don't get paid if I'm off sick either!).

What does everyone else do??

she might mean no company sick pay, just statuatory which doesn't kick in for first 3 days of absence.

Yes, I meant I don't have company sick pay.

I can't take in a lodger because my house in completely open plan, I understand the logic decision to sell but we would be taking a massive hit on it becsuse it's not finished yet.

I think the most logical thing is a mortgage break. I have sickness insurance (which costs me £100 per month) but it doesn't pay out until after 3 months of sickness.

Am sure we'll work something out. Another woman in work is also pregnant and I heard she had already complained.

We get the same as you pretty much - except we get 100% for 6 weeks then statutory. It won't be much use to you if you go back to work before the 6 weeks but if you do end up going into the statutory pay bit, remember that you will almost certainly be entitled to a tax rebate since you've been paying based on earning a full salary for a year but when it drops down on teeny tiny statutory the tax people will readjust and give you some of the tax you've paid back. Might not be much (depending on your current earnings) but it will be something.

I haven't read the whole thread so sorry if I'm repeating another post.

Isn't there a legal minimum that you have to take off after the birth?

I would seriously think about taking the mortgage break. You are made of stronger stuff if you are physically fit enough after two weeks and you can emotionally cope with leaving a newborn with carers.

Hope you get something worked out.

I'm not sure what Tummytickler meant earlier in the thread when she suggested living on benefits.

If you resign from work, you normally cannot claim JSA for 26 weeks (exceptions can be made if you have a constructive dismissal claim underway, but if you company is meeting its legal obligations I'd be surprised if this applied to you). This would effectively knock out the 26 weeks of contributions based JSA. Are you likely to get income-based JSA? This is assessed on a household basis, so if your DH works full time, it's unlikely you'll qualify. You'd also need to be actively seeking work. If you are taking a "baby break" then there's Income Support, but again you're unlikely to qualify if your DH is in work. I suggest you check the various Govt websites as there are a few other hardship provisions.

But you might get CTC/WTC depending on his income level and whatever the new thresholds will be - bit difficult to predict, but should be clearer after the Budget.

Can you DH be a SAHD? Could be a sensible choice if his employment isn't terribly secure, not least as you'd save a small fortune on childcare costs.

If you really cannot see how you'll make ends meet, then waiting (and saving) until you are more financially secure would be the prudent thing to do.

That of course might be really bad advice, depending on you age. But unless/until UK housing costs become more affordable all round, your position is far from unique.

Apple, I'm due in 12 weeks and my private sector company is the same - 6 wks on 90%, then £124 per week - absolutely rubbish!

I'm taking 6 months, but from now onwards (during pregnancy too) I will work from home; so if possible this might be something that could work for you?

When you return to work after having a baby you have the right to request flexible hours and/or working from home. You mentioned working at home for less pay - don't mention a pay cut to your boss, as I don't think you should have to take one (my work is definitely better and more efficient from home, so why would I want less money for it?)

I'd hate to think you were taking a pay cut for something that should be allowed if it doesn't have a negative impact on the quality of your work?

I will be putting the baby in a local nursery (for 3-4days a week) when I work from home, as I wouldn't be able to work with a baby in the house, but if you have grandparents in place for a few days a week, you might be OK?

Don't know if this helps at all, but thought it might be of interest x

Was this pg unplanned? Did you not consider this before getting pg?

We didn't TTC until we had 6 months salary each set aside, just in case.

We also only bought a small house, so we could afford the mortgage on one salary should there have been any reason for me not to return to work after ML.

ominolap - sorry, i do not know much about benefits, i just thought it might be something worth looking into to

Sorry to hear about this situation, it sounds really tough. Will your bank give you a mortgage holiday? If you weren't paying the mortgage then statutory maternity pay suddenly becomes much easier to live off.

Perhaps if you work right up until your due date (health permitting) then that would also help. Plus there is stuff like child benefit that all adds up. And we have been amazed as to how much money we've saved by buying second hand or borrowing from kind friends.

Fingers crossed that you are totally healthy up until the day you give birth I agree about working right up until that point. If you go overdue, stay at work (nobody says you have to be effective .

Most nurseries seem to take babies from 6 weeks old, so that would work out for you. Also, remember about childcare vouchers as they go straight from your gross earnings, before tax for childcare provision, so you can save some money there. We worked out we could save over £2000 a year that way.

You should also be entitled to your full annual leave package. I don't know how much you have, but if you take naff all between now and due date, you could add some on to the end of your maternity leave? I'm taking annual leave before due date and have managed to save up 20 days, so I have a month off, but it won't eat into maternity leave iyswim.

Working out a financial plan to see what you could do and what you could afford to cut back on seems a sensible thing to do.

Good luck x x

Apple: I'm really sorry! For some reason I got it into my head that this was a hypothetical baby, not one actually on the way. Comment about waiting and saving was not relevant and very tactless.

As your house is your dream self-built house, then I can see why you want to stay put. Could you take a short term lodger (pre-baby)? Rent out your drive? Do you have anything you can sell?

HI guys, thanks for the suggestion. Hubby and I had been TTC for a long time before I finally got pregnant (I'm now 35), we just got to the point where we didn't think it would happen which is why we weren't really prepared.

Taking in a lodger isn't an option really, my house is completely open plan although we were only going to live in it short term and sell it on, I'm still not prepared. I do have the option for a mortgage break though so I'm sure I'll find a way around it.

I'm hoping work are going to go for the working from home thing for a couple of months - I'll work my way up to suggesting it.

Don't get me wrong, I'm not having a moan but I was just wondering if there was anyone out there who had the same problem.

I agree with CaptainNacy, I had just the basic maternity pay from my firm and we wouln't have even tried for a baby if we couldn't have afforeded to pay the bills on one wage.

We have a small cramped house, but I don't have to work. I have friends who also downsized when she found she was having twins as they where worried what would happen if she couldn't go back to work. This is also something to take into consideration as you never know what mite happen.

I also had a bad birth experances and really couldn't have gone back to work that soon anyway. I didn't leave the house for the first 6 weeks.

The other option is if your the main earner could you OH cut down on his hours and work maybe 3days a week while baby is looked after by GP's. I know this has worked for some of my friends quit well.

You do get things like CTC but be warned you woun't get them in the first year anyway as they, take your preivous tax year not what you are currently on into account. DD was born in June, we didn't get anything for the first year then got a lump sum for that year at the beging of the next year. I think there are some cercumstances that you can get them to pay it straigh away but that's not the standard practice.

Is there a reason you can't save up over the forthcoming seven months? I know you said you won't take a holiday, but surely there are other ways you can save?

My friend who is single managed to save £3000 in roughly the same time, which would surely help a little, unless your mortgage is humungous, in which case I'd move out.

hello apple

I am the main earner in this house and having first baby on thursday by c-section.

I work for nhs so get 8wks full pay, 18wks half pay+stat mat pay and then 13wks stat mat pay.

We too have a mega mortgage but have been overpaying for past 3yrs since we have lived here and took the mortgage out, we have reduced it somewhat but still have a hefty payment with a reduced salary but can manage it.

Since we found out we were expecting we have been saving and have saved enough that I can take 9mths off with the above maternity payments and will be no worse off when I go back to work 4 days a week with childcare costs so its an amount we need to get used to living on.

we had 2 new cars an 08 and 09 plate cars and as soon as my mat leave (well 4wks worth annual leave) started a mth ago we traded them in for a bigger basic car 09 plate and some cash so whilst I am on mat leave we will manage with one car, husband cycles to work when possible and I can get the bus or walk - not brillant services round here but manageable.

We have also stocked up on nappies and wipes throughout the pregnancy whilst we have 2 full time wages.

join every baby club going and get the freebies and coupons (maximise coupon value and use when products are on offer anyway).

Sign up to do mystery shopping as this offers free nights out therefore not out spending - I only do this for one company and they just reimburse cost of cinema visit so therefore no tax hassles - if you are paid would need to register as self employed and declare earnings.

i dont think your work would like you back so soon, from an insurance perspective
it sounds unlikely but do you know if they do any type of 'baby bonus' payments or time off
are you friends with any collegues who have kids you could chat about with?
from a benefit perspective if youre a higher earner it could also be worth looking at you staying off and basing benefits on partners lower earnings?
I'm due same time as you, and also main bread winner so can empathise,
x

When I had DS I was VERY lucky that I got 4 months full pay while on maternity leave but when I went back to work that was when we really struggled!

I don't know how much you are earning but I was on £23,000 a year and although a pay cut to SMP of £500ish per month was not easy to sustain, when I went back to work I had to pay £600 a month in childcare so there wasn't a lot of difference between the two! Child benefit was £80 a month and tax credits were £90 a month plus we got childcare vouchers which saved us £80 a month in tax breaks but really there was a huge deficit. We ended up putting a lot on credit cards and after a while of not having enough cash to even get by and being so miserable that I had to leave my baby for so many hours a week I decide to childmind. I know this is not ideal for everyone but that was the only way for me to cope. I really don't know what people do when they have been relying on 2 salaries and suddenly one is significantly reduced or their outgoings massively increase. We are fortunate that my husband can work some overtime and I do evening babysitting as and when I can to make some extra cash but other than that I really don't know what to suggest. The mortgage holiday sounds like a good idea or move onto an interest only mortgage for a year or so to reduce your monthly outgoings. It would be a shame to leave the house you built yourself but time with your baby is so important when they are tiny. Good luck with it all.

I haven't read all the posts here and this may have already been mentioned. If you made your home yourself I can understand the attachment and effort you must have put into it so would not want to sell. Could you rent the whole house out for a year or two and rent somewher cheaper, at least you would still have the house and could move in when your more used to being a family and the baby is in nursary. Does your employment offer childcare vouchers? This is what I am planning on using and it shoulds save us loads. ALos by law your company should hear you out and acceptt that you may wish to work part time when you return, and that may include working from home too if appropriate.

Good Luck, Money Sucks its always my worry.

xxx

Haven't throughly read all the posts so sorry if I'm repeating.

Can you take a really good, long hard look at your budget. I am our major bread winner by a considerable margin and whilst get a better deal than you have had to look at where money can be saved to make the pay stretch further so I can take a longer period of mat leave. Fortunately we have a flexible mortgage so cutting payments there was an easy one, but also have reduced budget for holidays, going out, petrol (when I'm on mat leave won't have 65 mile round trip to work) etc etc. Have also been selling stuff on ebay which has so far covered the smaller baby purchases (clothes, moses basket, blankets, nappies etc.)

I depends if you have a lot of debt, but consider looking for an interest free for 12 months credit card to help you spread the cost of purchases.

As far as going back to work, at whatever point that will be, we've had to make the desicion that dh will go part time and do the daddy day care thing. I know this is going to be hard but is the only sensible way to maintain the lifestyle we enjoy and want to give to our child. He's actually really quite excited about the prospect to be fair.

Good luck. Have you had a look at www.moneysavingexpert.com for some of their ideas on saving money and being a bit frugal. You'd be surprised by how much little things can help

If you have a nice big house and aupair might be an idea? I only got paid 50 quid a weeka sone and while you do need to pay for other stuff it does work out pretty cheap. You dont have to faff about wasting time getting baby to and from childcare either.

Oh poor you - this is rotten.

I have been saving like crazy since finding out I am preg and then plan to take out a small loan if necessary to tide us over.

Also, if we just can't cope financially, we have considered renting out our flat (would renting out your house cover the mortgage?) and moving in with my parents.

If your husband is unsure about job stability, I would seriously consider him taking voluntary redundancy and being a stay at home dad. Would your salary alone cover the mortgage plus other bills? If not, again could you rent your house out for a few months and move in with grandparents?

In terms of buyng stuff, you hardly need anything at all:

1. I am sure someone will give you a moses basket - post a "wanted" on here or go on freecycle - if you ofer collect it, loads of people will be wanting to get rid of it for no money! If you have a moses basket, you won't need a cot for a while (I havne't bought one and won't until the baby is actually growing out of the basket). All you will need to buy is a new mattress (about £12 from John Lewis, may be cheaper elsewhere).

1. In terms of bedding, just cut up bedding that you already have - the baby won't care!

1. Clothes - people will give you clothes when its born so you just need to buy a couple of packs of the very cheapest white babygros and vests. You really do not need anything else.

1. Changing mat - you need this but it only costs about £5.

1. Baby bath - you do NOT need this.

1. Pushchair/pram - I would buy a second hand wrap sling for the first months (e.g. a Kari-me is £30 new, about half that on ebay) and then buy a cheap second hand buggy (a Maclaren or something) for about £25.

1. Car seat - this is the only thing you ought to buy new. They are much of a muchness though, so go cheap!

1. Muslins - useful, but do just cut up an old sheet if you want!

Everything else is pretty much non-essential.

Hey apple I'm in the same pay situation as you - I work for a small private sector business.

We saved hard before TTC as we knew mat pay would be an issue. Husband earns 60% of our joint income I earn 40% so we can't survive on his salary alone.

I am using holiday time to extend my leave before and after official leave starts and ends so for 1 week before and 2 weeks after I am getting full pay while off.

Also legally you can work up to 10 days as Keep in Touch "KIT" days without sacrificing your stat maternity pay. Your company has to pay you for these days. I'm working all of these over the course of 2 months (working from home) to bump up my income in these months. If you can't work from home maybe your husband could take these odd days as holiday to care for the baby or you may have a grandparent/friend who could do them for you?

Hopefully these things will make our savings stretch out longer... we have also rung all of our insurance/cable/utilities and swopped onto cheaper deals which has saved us £120 a month so far. Eg., our home insurance provider offers 3 months free for new customers so we rang and said we were thinking of changing provider and we also got the 3 month deal (£60 month saved for 3 months!) Ask for the customer retentions dept. when phoning around and, in my experience, they will offer you some kind of deal to stay with them rather than lose a customer. Don't take their first offer!

I'm planning on taking 6 months off altogether which breaks down roughly as follows...

month 1
1 week hol pay (full pay)
3 week 90% pay

month 2
3 week 90% pay
1 week stat pay

month 3
4 week stat pay

month 4
4 week stat pay
5 days/1 week KIT pay (full pay)

month 5
4 week stat pay
5 days/1 week KIT pay (full pay)

month 6
2 week stat pay
2 week hol pay (full pay)

Applemuncher how rubbish for you. I also work for a relatively big well known company that used to have a brilliant maternity package but after cut backs last year is now 90% for six weeks then stat the same as yours.
I am also the main earner and my partner does a very worthwhile but notoriously badly paid job.

I desperately want to take a year off, which will leave us on a very low income. We are starting to budget now and trying to save each month the amount that will allow us to cover the rent and necessities next year. We still will have to move to a place with lower rent as where we are now is too much. We are planning on lots of hand me downs and luckily have friends with babies now. It will be tough though, no more haircuts and news clothes for a while .

I really feel for you as If I had built a house I would definitely want to stay in it. And although I would love to own a house I'm glad we can move with relative ease. I think the idea of taking a lodger sounds good, even if its only for the next 6 months it should help..even if it just allows you to take a month or so off after the birth.

If your due March (like me!) then I guess you have some time to get saving. I really hope your hubby keeps his job!
Good luck with everything!

ooops, I totally missed the whole of the second page of this thread about you not being able to take a lodger. ignore me!

i feel for you apple muncher as i am too 9 weeks and the only bread winner in house as partner was made reduntant and i too only get 6 weeks full pay then just 123 pounds which is nothing so have to return after about 8 weeks which breaks my heart but nothing i can do about it . i am lucky to the fact daddy can look after it or my next door neighbour still wish i could have more time off.