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Original poster

Maternity Pay

106 replies

WilliamsJess · 20/09/2021 19:11

Hello - I’m wondering if anyone has any advice or perhaps is/has been in the same situation as me?

I am 20 weeks pregnant with my first baby, due in early February 2022. I informed my employer of this just after 12 weeks, and they were super excited for me, which was nice.

My employer is very good with many aspects of the job in terms of company benefits etc, for example paying everyone winter gas bill last year whilst we all work from home, bonuses and a generous salary, so I somewhat expected the Maternity Policy to be quite generous as well. Oh how wrong was I…. I have just been given the policy today, and it is literally the bare minimum. 6 weeks on 90% salary, and the rest SMP.

I have some savings, but not a lot and we still have a lot of baby stuff to buy. My partner is self employed and earns good money, about £45k.

It’s really unfortunate as we currently have a lot of outgoings: Mortgage, Household Bills, Car, Kitchen Repayments, my partners Tax Return etc.

My usual salary is 23k, and dropping down to SMP is going to be a massive struggle. I’m considering only taking 6 weeks maternity as I fear we won’t afford any longer than that, especially when SMP still has Tax, National Insurance (which is increasing, thanks Boris) and Pension contributions deducted. I’m lucky enough to have the option to work from home full time, and my partner does also so I feel like juggling work and the baby won’t be that much of a struggle. Hopefully. My company are also really flexible with working hours.

Has anyone else been in a similar situation? Am I entitled to any addition help such as Child Benefit, taking into consideration my partners income as well? I can’t really find any clear guidance on the internet… any advice would be greatly appreciated ❤️

OP posts:
worrybutterfly · 20/09/2021 19:55

@WilliamsJess

I think working with a 6 weeks old is VERY optimistic, and your employer is potentially going to be quite put out by it.

Could you put the 3 months worth of kitchen repayments onto a 12 month interest free credit card?

Then pay them off more gradually over the remaining 9 month interest free time. So the £600 a month for 3 months becomes £150 a month for 12 months. You'll 'save' £450 a month, but you'll need to be to be strict about not putting extra things on the card and making sure you pay it off before the interest free period ends.

Original poster
WilliamsJess · 20/09/2021 19:55

@1990b

* I’m lucky enough to have the option to work from home full time, and my partner does also so I feel like juggling work and the baby won’t be that much of a struggle. Hopefully. My company are also really flexible with working hours.*

Its unlikely that your employer will allow you to take care of the baby at home and work from home at same time. This would be unfair and discrimination against those employees who don't have that option available to them.

Also, its very optimistic to say that it won't be much of a struggle babies are 24/7 so everything revolves around especially l found in the first 3 months. You also need to think about your own health and well being. Do you really want to go back to work so soon after your baby, you will need time to recover

Of course I don’t, I would love to take a whole year off to spend with my new baby but I simply won’t be able to afford to do that. Unfortunately I don’t have any family close by that could help with childcare either. The only local family I have is my sister, and she will have gone back to work herself after Mat leave by then.
OP posts:
Hardbackwriter · 20/09/2021 19:57

Just to point out as well, OP - if you want to only have 6 weeks maternity leave that will have to include any time before the birth, so you need to work as late as possible and even then if the baby is late they'd be less than 6 weeks when you started working again.

SickAndTiredAgain · 20/09/2021 20:01

Of course I don’t, I would love to take a whole year off to spend with my new baby but I simply won’t be able to afford to do that.

Are you sure? £45k is a good salary, if you save now and buy baby stuff second hand, then it’s a drop but should be achievable. And SMP isn’t much but it’s not nothing. It can more than easily cover food for example.

bookish83 · 20/09/2021 20:01

OP I would think long and hard about going back so early.
Cut bills now- sky, amazon.... anything you can cut to make savings?
Sell things you own now? Swap your car?
Baby stuff.... you get gifts and people sell and buy a lot second hand! You can pick up amazing deals and you probably need less than you think

Can you write your income and expenditure on here and see if people can help?

VavavoomHenry · 20/09/2021 20:02

Yeah, sorry to agree with everyone else but babies need attention, you will be utterly exhausted and it will likely be a struggle to do the basic day to day taking care of yourself let alone returning work!

Definitely try to get a mortgage holiday and buy in childcare. At the very, very least you need an au pair/mother’s help (assuming you and your husband take it in turns to supervise them since they shouldn’t be in sole care) or a childminder. Don’t plan this for no childcare, you’ll just end up in a worse situation.

Original poster
WilliamsJess · 20/09/2021 20:05

@SickAndTiredAgain

Of course I don’t, I would love to take a whole year off to spend with my new baby but I simply won’t be able to afford to do that.

Are you sure? £45k is a good salary, if you save now and buy baby stuff second hand, then it’s a drop but should be achievable. And SMP isn’t much but it’s not nothing. It can more than easily cover food for example.

Yes, but my partner is self employed and has to continuously save to pay off his tax return. His next tax payment is due in January which is a 25k bill! (He was lucky enough to not be effected by Covid and actually earned more during lockdown) however is now paying the price with a huge tax bill.
OP posts:
AnotherEmma · 20/09/2021 20:11

SMP is not particularly generous, no, but that's not your problem. Your problem is that you and your partner have been living beyond your means and getting into debt instead of saving for a baby. With a combined net monthly income of about £4,400 (my estimate), that should in theory be plenty to pay essential bills and save up for maternity leave. But you have hefty finance payments for a kitchen and you also mention a car (or is it two cars?). Your outgoings are high and that's mainly because of debt repayments. So what I suggest you do is draw up a budget of all your outgoings. Go through it item by item to see where you can reduce expenditure. MoneySavingExpert is brilliant for this. And consider your options for the debts; organisations like National Debtline and Citizens Advice will have lots of useful information on their websites about budgeting and dealing with debts.

After the baby is born, you will be entitled to Child Benefit which is £21.15/week. Due to your combined earnings, and the fact that you have a mortgage (not renting) and don't mention any disabilities, you won't be entitled to anything else.

Do also consider your legal/financial position if you are not married. Is the house jointly owned, will your partner be paying more/all of the bills while you are on maternity leave, do you both have wills and life insurance, etc.
www.citizensadvice.org.uk/family/living-together-marriage-and-civil-partnership/living-together-and-marriage-legal-differences/

Isabellabasil · 20/09/2021 20:13

OP everyone pays tax, it's just that your partner pays it in retrospect. What I mean by that is that he will have the same income after tax is paid, as someone on payroll.

However if he is paying £25k tax he must be earning a lot more than 45k. Might be worth a chat with him about how he can step up financially, it shouldn't be 50/50 if he earns so much more than you.

AnotherEmma · 20/09/2021 20:14

One of many very helpful articles on MSE
www.moneysavingexpert.com/family/baby-checklist/

SickAndTiredAgain · 20/09/2021 20:16

Yes, but my partner is self employed and has to continuously save to pay off his tax return.

Sure, but £45k is still a good wage whether he pays the tax himself or it’s taken before it gets to him.

Invisimamma · 20/09/2021 20:16

Everyone pays tax every month OP. That's not a unique situation.

Your combined income is £68k. You should be able to afford decent mat leave on that kind of income. It's your choice not to, you certainly could afford it if you rearranged your financial priorities earlier.

WowStarsWow · 20/09/2021 20:17

My net pay will drop from £3500 to £700 on SMP. You just have to save. You still have 4-5 months Smile
Will your childcare be more than £850 a month or can you and DP work around each other (for instance)? The problem of a drop in cash doesn’t generally go away at the end of mat leave, except for those lucky few who get free family help or can work opposite hours.

Original poster
WilliamsJess · 20/09/2021 20:18

@Isabellabasil

OP everyone pays tax, it's just that your partner pays it in retrospect. What I mean by that is that he will have the same income after tax is paid, as someone on payroll.

However if he is paying £25k tax he must be earning a lot more than 45k. Might be worth a chat with him about how he can step up financially, it shouldn't be 50/50 if he earns so much more than you.

He earned more in the last financial year because of the lockdown and there was more demand for his type of work (He is an online illustrator and earns through view count, which he got a lot more of during lockdown whilst the country was staying at home), but I have seen myself that it has dipped back down again this year due to everyone going back to work.
OP posts:
londonsaint · 20/09/2021 20:18

Can you save all your annual leave and bolt it on to the front or end of maternity leave? You're entitled to accrue it whilst on maternity leave.

Also, is there an option to do overtime or earn extra pay during the SMP qualifying weeks? SMP is 90% of average weekly earnings for a set number of weeks. If you earn more in these qualifying weeks, the pay is higher.

You're also entitled to paid Keeping In Touch days without ending your maternity leave, so might be an option for a particularly tight month?

Original poster
WilliamsJess · 20/09/2021 20:20

@londonsaint

Can you save all your annual leave and bolt it on to the front or end of maternity leave? You're entitled to accrue it whilst on maternity leave.

Also, is there an option to do overtime or earn extra pay during the SMP qualifying weeks? SMP is 90% of average weekly earnings for a set number of weeks. If you earn more in these qualifying weeks, the pay is higher.

You're also entitled to paid Keeping In Touch days without ending your maternity leave, so might be an option for a particularly tight month?

Do you know how Keeping in Touch days work exactly? I know I am entitled to this but I’m not sure on all the ins and outs.
OP posts:
Mamainthemaking · 20/09/2021 20:21

I am in your EXACT situation. I’m 20 weeks, my husband is employed earns £45k and I earn £24k. Can’t believe my company only offers the bare minimum, I too assumed it would be far better considering our other benefits. I’ve been looking for a second job in order to save, but despite the laws no one wants to take on a pregnant woman.

FrancesFlute · 20/09/2021 20:24

Sorry I agree with previous posters that FT WFH with a tiny baby just isn't doable. Nothing prepares you for the first few months. You/your DH will likely be up for hours each night so your sleep will be severely disrupted, baby may not sleep for longer than half hour chunks, may want to be held all the time etc. If someone had said to me all this when I was pregnant with my first I would have smiled and nodded but inside be thinking 'they obviously just couldn't cope/were unlucky that baby didn't sleep/my baby will be wonderful'. I got a tough awakening. You're getting good advice here.

I would suggest making some cut backs or savings now, and considering returning to work when baby is 6 months and putting them in some childcare then.

Isabellabasil · 20/09/2021 20:24

Worth speaking to your employer about KIT days before you go on mat leave. They don't have to offer them (and you don't have to work them if you are offered them) - it's by mutual agreement.

Original poster
WilliamsJess · 20/09/2021 20:25

@Mamainthemaking

I am in your EXACT situation. I’m 20 weeks, my husband is employed earns £45k and I earn £24k. Can’t believe my company only offers the bare minimum, I too assumed it would be far better considering our other benefits. I’ve been looking for a second job in order to save, but despite the laws no one wants to take on a pregnant woman.
I’m sorry to hear this, but also glad I’m not in this alone! I feel like a lot of people are scrutinising me for being in this situation rather that offering actual advice. I was so shocked to hear my company offer the bare minimum, because they are so generous with absolutely EVERYTHING else. I assumed if they could afford to pay everyone’s winter gas bill (like my company did last year because of lockdown) then they could afford a decent maternity policy.
OP posts:
Hardbackwriter · 20/09/2021 20:26

You've answered lots of questions but not my one about whether you share all bills 50-50 and are expecting that you continue to contribute half when on maternity leave - so I take it that's a yes?

Original poster
WilliamsJess · 20/09/2021 20:28

@Hardbackwriter

You've answered lots of questions but not my one about whether you share all bills 50-50 and are expecting that you continue to contribute half when on maternity leave - so I take it that's a yes?
No, not at all. We don’t necessarily do 50/50 now, he definitely pays out more than I do but I still like to contribute as much as I can.
OP posts:
RoseGoldGlasses · 20/09/2021 20:31

My situation was worse than yours Op, both mine and DPs salaries are lower than both of yours.
We managed, people are just trying to be realistic for you.
I got the biggest shock of my life when I got home from the hospital with my baby.
It's hard and trying to work that soon after having a baby I would of honesty been a broken woman.

Your paying nearly £600 a month for a kitchen which will be your SMP so I can see why your stressed about it, is there anyway to pay the kitchen off from savings and actually save the £600 for mat leave?

FrancesFlute · 20/09/2021 20:31

You asked for advice though? In the nicest way, people are seeing ways you could potentially improve your financials before baby comes. They are also politely pointing out that one of your solutions was the idea that you will be able to FT WFH with a 6 week old and that it is probably unrealistic Smile.

Zarene · 20/09/2021 20:34

You can't do a proper employed job while looking after a baby, it's simply not possible. Don't even consider it as an option.

But as your DH is self employed could he drop his hours down massively - I'm talking about him doing 2-3 hs / day and being primary carer while you work FT? Obviously you'll collectively be on far less than now but it might help you tick over.

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