Financial Help for Parents and Parents To Be.
Babies, lovely as they are, can have a massive financial impact. From the neccessities that need buying to the loss of earnings while you are on maternity leave, the extra cost can sometimes be daunting.
However, help is on hand from a number of sources. Have a read through our guide to see if there is anything extra you could be entitled to.
Information is correct at time of going to press - April 2008
What you are entitled to in the way of maternity pay and leave varies depending on your circumstances.
If you are in employment, then you are entitled to Statutory Maternity Pay (SMP) for 39 weeks, so long as you meet certain conditions. To qualify, you must have been employed continuously by the same employer for at least 26 weeks into the 15th week before your due date, and you must be earning an average of at least £90 a week. If you get SMP, your employer will pay you 90 per cent of your average weekly earnings for the first six weeks, then up to £117.18 for the remaining 33 weeks.
If you do not qualify for SMP, then you may be able to claim Maternity Allowance (MA). There are certain conditions, such as you need to have been employed, or self employed and either paying Class 2 NI contributions or holding a Small Earnings Exception Certificate. If you have worked for at least 26 of the 66 weeks leading up to your due date and have earned an average of £30 per week for 13 of these weeks, then you may be entitled to MA which is paid at a rate of £117.18 a week, or 90% of your average weekly earnings, whichever is lower.
DirectGov's online resource TIGER is helpful in working out your maternity rights and responsibilities: http://tiger.direct.gov.uk/cgi-bin/maternity.cgi
There is a £500 SureStart Maternity Grant available for families who meet certain criteria.
If you or your partner are in receipt of Income Support, income-based Jobseekers Allowance, Pension Credit, Child Tax Credit at a higher rate than the family element or Working Tax Credit where a disability element is included then you are entitled to the grant if you or your partner are expecting a baby in the next 11 weeks or have given birth in the last three months.
You are also entitled if you have adopted a child, been granted a residence order or a parental order for surrogate birth within the last three months, or if you or your partner are receiving benefit for a dependant under the age of 20 who is expecting a baby in the next 11 weeks or has given birth in the last 3 months.
To apply, download the form: http://www.dwp.gov.uk/advisers/claimforms/sf100_print.pdf
Child Benefit is paid to anyone bringing up a child or young person, and is tax free. It isn't means tested - everyone is entitled to the same amount - however it can affect other means tested benefits, such as Income Support.
Child Benefit is available if you are bringing up a child under 16, a young person under 19 who is still in full-time education, or a 16 or 17 year old who is registered with the Careers or Connexions Service or similar.
The amount at the time of writing is £18.80 per week for your eldest child, and £12.55 a week for each additional child.
To find out more, or to claim, see: http://www.hmrc.gov.uk/childbenefit/online.htm
Child Tax Credits (CTCs) are means-tested payments made to parents and carers of children or young people who are still in full time non-advanced education or approved training.
If your household income is less than £58,175 a year (or £66,350 if you have a child under one) and you have a child under 16 or a young person in full-time education at school or college, or doing approved training then you can apply for CTC. The amount you are entitled to will vary depending on your income and whether you have children under one.
- a family element is paid to any family with at least one child and worth up to £545 (2008-2009 tax year)
- a child element is paid for each child in the family and worth up to £2,085 (2008-2009 tax year)
You will receive more for a child under one, or for a child with a disability.
You can check your elegibility by using the online calculator: http://www.taxcredits.inlandrevenue.gov.uk/Qualify/DIQHousehold.aspx
