Congratulations! You’ve received confirmation that a little one is on the way!
We all travel different paths into parenthood and the impending changes which are to come, but it is important to start planning ahead of time for the financial, emotional and physical demands of the journey you are about to embark upon.
I recall reading the two blue lines on the Clearblue magic stick and once I’d recovered from my initial shock, thinking “I must check my company’s maternity policy” in the morning (it was just after 2am and I had got up with a full bladder to do the test). Turns out I was just under the qualifying period of service in which to take the benefit of any enhanced pay policy and my entitlement to pay during maternity was based on statutory rules.
How much leave are you entitled to in the UK?
An employee in the UK is entitled to take off up to 52 weeks’ maternity leave when having a baby. There is a compulsory period of maternity leave that a woman who has given birth must take following childbirth for health and safety reasons; this is usually two weeks’ or four weeks if the employee is a factory worker. An employee can commence their maternity leave from work up to 11 weeks’ prior to the expected week of childbirth (“EWC”) – please note that if you are sick on account of a pregnancy related illness in the 4 weeks’ prior to the EWC, this can automatically trigger your maternity leave commencing.
Statutory Maternity Pay (“SMP”)
There are eligibility rules to calculate if an employee is entitled to SMP from their employer which include (but is not limited to) length of continuous employment, a normal weekly earning threshold and providing the correct notice of pregnancy to the employer prior to going on maternity leave. If an employee is not eligible for SMP then she may qualify for maternity allowance (“MA”) instead, which is a government benefit paid directly to the individual.
Both SMP and MA is paid for up to 39 weeks. SMP is paid in the same way as wages (and therefore liable to tax and NI deductions). SMP is paid at 90% of your average weekly earnings for the first 6 weeks and then at either the statutory rate or 90% of average weekly earnings (whichever is lower) for the remainder 33 weeks. The statutory rate is reviewed each year and often revised each April. The current statutory rate for the 2025/26 year is £187.18.
MA is paid at either the statutory rate or 90% of average weekly earnings (whichever is lower) for the full 39 weeks.
As the length of time on maternity leave is up to 52 weeks and the pay period is 39 weeks, this means that women who choose to take the full year off on maternity leave will not be paid for the last 13 weeks of such leave.
If your employer offers enhanced maternity pay then you may be paid more than the above rates for a certain period of your maternity leave. Often, any enhanced pay will be subject to you attaining a minimum length of continuous service with the company beforehand and will encompass any statutory payments that you will be entitled to i.e. you will not get paid SMP on top of any enhanced payment for the same period. You may also be required to remain in employment for a specified period of time upon your return from maternity leave to avoid any clawback or repayment of enhanced pay kicking-in. As such, please ensure that you carefully read your employer’s maternity policy to avoid being caught out!
If you do not qualify for enhanced maternity pay I would still recommend asking for it in any event; as the saying goes, “if you don’t ask, you don’t get!”
Keeping in Touch days (“KIT days”) and holidays
You can work for up to 10 days for your employer during your maternity leave without losing your entitlement to SMP or bringing your maternity leave to an end. Usually, employees will received their usual rate of pay for work performed during a KIT day however this is a matter to be agreed between you and the employer beforehand.
As you remain employed during maternity leave you will also be accruing holidays whilst off. You cannot take the two types of leave together therefore it is usual to tag-on accrued holidays to the end of the maternity leave period in order to remain off but still receive a payment for such period.
I utilised KIT days to attend any training that was ongoing at work and also to assist with the period of my leave for which I was no longer receiving pay. I also took two weeks of my accrued holiday at the end of my maternity leave and reduced my working week by a day for a number of weeks on my return without suffering a reduction in usual pay.
Baby showers / gifting
My friends were super excited that I was about to have my first child (being the last one in the friendship group to do so) and they organised a baby shower for me with a wishlist of essential items that would be needed in the first year. Family members and friends therefore would check off which items they were intending to gift which kept my spending to a minimum and avoided duplicate items. Admittedly, my daughter decided to arrive a little early therefore I never actually got to have a baby shower and it turned into a “welcome home/meet and greet” instead!
Even if you are not gifted items, you can keep costs to a minimum by utilising hand-me-downs of clothing items or shopping bundles at Vinted or in local supermarkets. I kept the colours neutral so that I could mix and match more items and created a baby capsule wardrobe. Babies grow so quickly and there will be clothing that you just don’t get round to using. In addition, picking up items such as a cot, changing station, dresser on places such as Marketplace, Vinted or ebay can save a fortune and many are either new or just as good as new. I would however recommend if you are getting a cot second hand to ensure that you buy a brand new mattress for it.
Other considerations
The moment I found out I was pregnant I upped the saving and budgeting as far as I could from each wage received. I calculated the amount required to cover the shortfall in wages in order to pay essential expenses whilst I was not working. Once I had this figure in mind it was easier to stay focused on my financial goal.
The cost of baby formula will need to be factored in if this is your chosen method of feeding or if you are unable or do not wish to breastfeed. Prices on formula vary between the different brands but you should read the labels carefully to decide which formula is best for your baby. I combi-fed (breast and formula) in the first few weeks and then was able to solely breastfeed my daughter which did reduce my expenditure.
Also, ensure that you are utilising any schemes and assistance for childcare that you can. The government offers a tax-free childcare scheme which pays up to £500 every 3 months to assist in the costs of approved childcare (this amount is increased if your child is disabled). You will need to register for the scheme and set up an online account for payments to be made into by both you and the government. Payments need to be made by you into the account and the government then pays in 25% of what you do (subject to the £500 limit every 3 months). For example, for every £8 paid in, the government will pay in £2.
Working parents may also be eligible for 15 (or 30 hours from September 2025) free childcare for children from the age of 9 months subject to meeting eligibility requirements. It is no secret that the cost of childcare is significant (often surpassing monthly rental or mortgage costs), therefore it is important to be clued-up on your entitlement at an early stage.
Finally… the old cliché. Your time with your baby on maternity leave really does fly! Nourish yourself as much as possible, enjoy the moments, and ask for help if needed from your trusted circle.
Wishing you a fantastic journey xxx
Saver Raver 