Maternity Benefit in the UK - Maternity Allowance

Maternity benefits and maternity leave in the UK are a form of government support for working women after the birth of a child. The range of help available is affected by, among other things, the extent and type of work and the level of income. In the article below, we discuss Maternity Allowance and Statutory Maternity Pay in the United Kingdom - who is entitled to them, how to obtain them, and how do they differ? We will also look at how maternity leave works in the UK and what other benefits parents in the UK are entitled to.

What is Maternity Allowance?

Maternity Allowance is a tax-free benefit paid by the government, which you can receive during maternity leave if you do not qualify for Statutory Maternity Pay (SMP). It can be paid for a period of 39 weeks, every two or four weeks, directly into the recipient’s account. The amount of this benefit depends on your form of employment, your earnings and the number of National Insurance contributions paid, but it cannot exceed the maximum amount set for that tax year.

Who is entitled to Maternity Allowance?

Maternity Allowance can be obtained by people who:

• are employed but do not qualify for Statutory Maternity Pay (SMP),

• are self-employed,

• have recently stopped working,

• do unpaid work for their partner’s business (in a marriage or civil partnership).

To qualify for Maternity Allowance, you must have been registered as self-employed or have been employed for at least 26 of the 66 weeks before your due date.

How do you get Maternity Allowance?

You can apply for Maternity Allowance once you have been pregnant for at least 26 weeks. To do so, print out form MA1, fill it in and send it to the address shown on the document - together with evidence confirming your income and your due date. A decision usually takes no longer than 20 working days.

• How much is Maternity Allowance?

The Maternity Allowance rates for the 2024/25 tax year are:

• if you are employed or have recently stopped working: £184.03 per week or 90% of your average weekly earnings (whichever is lower),

• if you are self-employed: from £27 to £184.03 per week, depending on the number of Class 2 National Insurance contributions paid in the 66 weeks before your due date.

What is Statutory Maternity Pay?

SMP is the statutory maternity pay in the United Kingdom, that is, the minimum amount an employer is legally obliged to pay an employee during maternity leave.

Who is entitled to SMP?

To receive Statutory Maternity Pay (SMP), you must meet the following conditions:

• earning on average no less than £123 per week,

• informing your employer and providing proof that you are pregnant,

• having worked for the same employer continuously for at least 26 weeks up to the 15th week before the expected week of childbirth.

You are entitled to receive Statutory Maternity Pay in the United Kingdom even if you change or lose your job after meeting the above conditions.

How do you get SMP?

To receive SMP, you must inform your employer of the pregnancy and provide confirmation of it from a doctor or midwife - you must do this at least 28 days before the date from which you want to start receiving the payment. You must also give your employer advance notice of when you want to start your maternity leave - this must be done at least 15 weeks before your expected due date.

If payment is refused, your employer must give you form SMP1 and an explanation within 7 days of making the decision. If you believe you are nonetheless entitled to Statutory Maternity Pay (SMP), you can appeal to HMRC.

How much is SMP?

The Statutory Maternity Pay (SMP) rates for the 2024/25 tax year are:

• 90% of your average weekly earnings (before tax) for the first 6 weeks,

• £184.03 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks.

The payment is made by your employer weekly or monthly (depending on how your wages are paid) and is subject to tax and National Insurance deductions.

Who is entitled to maternity leave in the UK?

Every employed woman in the United Kingdom who informs her employer of her pregnancy in the appropriate way has the right to take maternity leave. It does not matter here whether you qualify for SMP or Maternity Allowance, how much you earn, or the extent and type of your employment - you can take maternity leave whether you work full-time, part-time or on a fixed-term contract.

Statutory Maternity Leave lasts a maximum of 52 weeks, of which 39 weeks may be covered by paid maternity benefit. The leave period is divided into:

• ordinary maternity leave, that is, the first 26 weeks,

• additional maternity leave, that is, the last 26 weeks.

You do not have to use the full leave entitlement - the compulsory time off work is 2 weeks after the birth of your child, or 4 weeks after the birth if you work in a factory. Maternity leave can start at the earliest 11 weeks before the expected week of childbirth.

What other benefits can you claim after the birth of a child in the United Kingdom?

After the birth of a child in the United Kingdom, parents can apply for various forms of financial support to help them provide suitable conditions for the newborn. In addition to Maternity Allowance and SMP, you may be entitled to, among others, the Sure Start Maternity Grant or Universal Credit. Which benefits you can obtain depends on your individual circumstances.

Sure Start Maternity Grant: key facts

This is a one-off grant of £500 intended to help cover the costs of raising a child. You may qualify for the payment if you are expecting your first child (or are expecting a multiple birth when you already have children) and you or your partner receive certain benefits (e.g. Universal Credit, Child Tax Credit, Income Support).

Universal Credit: key facts

Universal Credit offers monthly financial support towards living costs for people on low earnings, the unemployed and those unable to work. It consists of a basic payment and extra amounts depending on the claimant’s individual circumstances.

The rates for the 2024/25 tax year are:

• standard allowance:

for single claimants under 25: £311.68

• for single claimants aged 25 and over: £393.45

• for couples, if both people are under 25: £489.23

• for couples, if at least one person is 25 or over: £617.60

• extra amount for a child under 16 (or under 19 if they remain in education):

for the first child: £333.33 (born before 6 April 2017) or £287.92 (born after 6 April 2017)

• for the second child (and subsequent children, if born before 6 April 2017): £287.92

Child Benefit: key facts

Child Benefit is a payment you are entitled to if you are a parent or guardian responsible for raising a child:

• under the age of 16,

• under the age of 20 - if they remain in full-time education.

You can claim Child Benefit for all the children in your care, although only one person can receive the payment for each child - if you and your partner cannot agree and two claims are submitted, HMRC will decide who receives the payment.

Child Benefit is usually paid every four weeks, and the amounts are:

• £25.60 per week for the first or only child,

• £16.95 per week for each additional child.

Help with your tax affairs in the UK - PolAccount

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Maternity benefit in the UK: Frequently asked questions

Can you claim maternity benefit in the United Kingdom as a self-employed person?

If you are self-employed, you are not entitled to Statutory Maternity Pay, but you may be entitled to Maternity Allowance. Under this benefit, you can receive from £27 to £184.03 per week for up to 39 weeks. The maximum rate (£184.03) is available to those who were registered as self-employed with HMRC for at least 26 of the 66 weeks before their expected due date and paid Class 2 National Insurance contributions for at least 13 of the 66 weeks before their expected due date.

Are fathers entitled to leave after the birth of a child in the United Kingdom?

Yes, fathers can take two weeks of paid leave as Paternity Leave, and can also receive Paternity Pay of £184.03 or 90% of their average weekly earnings (whichever is lower). They can also use Shared Parental Leave - up to 50 weeks of leave that can be shared between the child’s parents or guardians.

Are agency workers entitled to Statutory Maternity Pay (SMP)?

Yes, agency workers can receive Statutory Maternity Pay in the United Kingdom provided they meet all the requirements and have worked for the same agency for 26 weeks up to the 15th week before their due date.

What is Contractual Maternity Pay?

Some employers offer CMP during maternity leave instead of Statutory Maternity Pay (SMP) as part of their employee benefits. Importantly, it cannot be lower than the statutory pay, and it may even be paid to employees who do not qualify for SMP - the exact conditions depend on the terms set out in the employment contract.