Statutory Maternity Pay (along with Statutory Paternity Pay and Statutory Sick Pay) is increasing by 10%. This increase comes into effect on April 2nd 2023.
Currently Statutory Maternity Pay (SMP) is £156.66 per week.
The rate from April 2nd will be £172.48 per week.
What is Statutory Maternity Pay?
Statutory Maternity Pay (SMP) is a legal entitlement for eligible pregnant employees in the UK. It is a form of financial support that is provided to new mothers during their maternity leave.
To be eligible for SMP, you must meet certain criteria, including being employed, earning at least £120 a week, and giving your employer the correct notice.
If you meet the eligibility criteria, you can receive SMP for up to 39 weeks. For the first six weeks of your maternity leave, you can receive 90% of your average weekly earnings before tax. After that, you can receive £151.97 or 90% of your average weekly earnings (whichever is lower) for the next 33 weeks.
SMP is paid by your employer, who can reclaim some or all of the cost from the government. If your employer is unable to pay SMP, you may be able to claim Maternity Allowance instead, which is a similar benefit provided by the government.
It is important to note that SMP is just one form of financial support available to new mothers. You may also be eligible for other benefits, such as Child Benefit or Tax Credits, depending on your circumstances.
Where can I get advice about SMP?
A great resource if you have more questions is Maternity Action. Maternity Action is the UK’s maternity rights charity dedicated to promoting, protecting and enhancing the rights of all pregnant women, new mothers and their families to employment, social security and health care. They also have a free advice line. All the information for that can be found here.
Maternity leave is meant to be a time to bond and enjoy your baby. But, for so many finances can be a real stress. Take a look at my blog on Ways to Financially Survive Maternity Leave.