Information » Family & Relationships » Being a Parent » Finance
- Having a baby and raising children can be expensive but there are benefits available to families to help them with the extra costs
- Good budgeting and careful planning will also help you to make the most of your finances
Statutory Maternity Pay
Most pregnant employees qualify for Statutory Maternity Pay (SMP) provided they have at least 26 weeks' continuous service with their employer (full or part-time) by the end of the 15th week before the Expected Week of Childbirth (EWC).
All pregnant employees and mothers of babies due on or after 1 April 2007 - regardless of length of service or the hours they work - are entitled to: paid time off for ante-natal care and normal sick pay rights for pregnancy-related sickness.
They are entitled to 52 weeks' maternity leave.
Maternity leave is made up of 26 weeks' Ordinary Maternity Leave (OML) and 26 weeks' Additional Maternity Leave (AML), starting at the end of OML with no gap between the two.
Maternity Allowance
- Maternity allowance is for women who work but do not meet the working or wage conditions for statutory maternity pay
- To qualify, you must have worked for at least 26 weeks in the 66 weeks before you are due to give birth
- This work does not have to be with the same employer or for 26 weeks continuously
- You must also earn at least £30 per week
- It is paid for up to 26 weeks
- To apply, you must fill in a MA1 form from your local benefits office or download one from www.dwp.gov.uk
If you do not apply for statutory maternity pay or maternity allowance, talk to your local Citizens Advice Bureau for expert advice
Statutory paternity pay
- If you´re becoming a father or are the partner of someone having a baby, you might be entitled to two weeks paternity leave and statutory paternity pay
- This also applies to same sex partners
- Talk to the Citizens Advice Bureau to find out if you are entitled
Child benefit
- Child benefit is a tax-free benefit paid to most families with a child
- It does not matter how much you earn, you are entitled to child benefits if you are responsible for a child under 16 or under 19 (20 in some cases) if they are in full-time education
- To apply for child benefit, complete a CH2 form from the Child Benefit Office, Inland Revenue enquiry centres or Jobcentre Plus offices. You can also call the Child Benefit Office. See links below
Child Tax Credit
- Child tax credit is a payment to anyone who is responsible for at least one child
- The amount you get will depend on your income and circumstances
- To apply, call the tax credit helpline number on 0845 300 3900 (textphone 0845 300 3909)
Child Trust Fund
- A Child Trust Fund is a savings and investment account for children
- The government will make payments to the children through this account, but friends and family can also contribute if they like
- Your child will gain access to the trust and all the money when they turn 18
- If your child was born on or after 1 September 2002 and you are getting child benefit, you will automatically be sent vouchers to set up the trust
- The government will make an initial payment of £250 and another on your child´s seventh birthday
