Car Allowance whilst on maternity leave

[littone]

Whilst i was on maternity leave my company did not pay my car allowance, but for purposes of working out my maternity pay that added it to my salary so I received 90% of my salary + car allowance for the first six weeks maternity leave and so on.

I met with a friend today who thought organisations were no longer allowed to do this and had to pay benefits like this in full whilst you were on leave. Does anyone know if this is correct or could point me to the relevant law? Thanks

Why would they pay your car allowance when you are not working?

If they included this in your maternity pay, I would keep my mouth shut and be grateful for the extra cash!

The honest answer is that the law is not clear on cash benefits. Benefits have to be continued during OML (i.e. the first six months). This will change for babies born from October to apply throughout maternity leave.

BUT pay obviously stops during maternity leave. It's not always clear cut whether a cash car allowance is part of pay or a separate benefit for these legal purposes (Flowerbeanbag gave a good explanation of this a day or two ago on a thread about housing allowance).

How long ago was it? You refer to it happening whilst you were on leave, so presumably some months ago? You may well be out of time to claim in any event. Personally, I would let it go, but bear it in mind for a discussion if you are planning any more DC's.

littone here is the thread where we were talking about similar issues.

See here workingfamilies factsheet which includes a section on car allowances.

Thanks everyone - will have a look at the links flowerybeanbag.

DSM - I have friends whose companies pay car allowance during maternity leave as they expect that most employees will be using it to pay a car loan back. Another friend raised this last night so thought it would be worth checking!

RibenaBerry - I started maternity leave on 27th May 2007 and have returned after a year off. Absolutely want to consider for any future children!

Ah, well if you're planning for the future, get all your facts and arguments lined up and then you can be ready to launch your arguments for number two. I agree, that's a really sensible plan.

I received my car allowance throughout maternity leave - the rationale is because you have the option of having a company car (on a 4 year lease) or using the allowance to buy/lease your own - either way the financial commitment is there for the duration of maternity leave.