Problem with Statutory Maternity Pay

The_Write_Girl

Hi - I'd appreciate advice with a problem which has arisen. I have been off work ill for the duration of my pregnancy and thanks to my long service and reputable company, I received full sick pay for a few months.

I was also worried sick about this illness affecting my SMP (as I would then be on SSP), so I checked with my HR department in relation to the 'qualifying weeks' and stressed that I wanted to use my annual leave during that time, to ensure I would receive my 90 per cent for the first six weeks. The HR manager didn't seem to be aware of this qualifying period and assured me that I would receive my full 90 per cent.

I was so unsure of this that I tried my best to work out the qualifying dates and slotted in several weeks holidays at full pay which was fine. However, I received a letter to say that my SMP will be over £40 per week less, owing to receiving SSP during that period. I hadn't managed to work out the dates correctly myself.

My question is - despite repeatedly querying HR, I have now lost money through their lack of knowledge. If they had told me my qualifying dates and confirmed this was how they worked out SMP, then I would gladly have taken my annual leave during these weeks to ensure I didn't lose money. It's not a massive sum, but we have a large mortgage and bills and we are not entitled to a penny in tax credits etc....

Should I point out their mistake? I'm not sure what to do.

Any help is appreciated - thank you:j

Tarzan

The qualifying weeks are weeks 18-26 I think. The average of your income will determine the 90% rate for the first 6 weeks of SMP. Unless you had 8 weeks holiday the average would have been brought down by your SSP.

The_Write_Girl

My average has been brought down by around a week's sick pay, I believe. My main grip is that I asked HR repeatedly whether my sickness and absence would impact on my SMP and they assured me it wouldn't!

Tarzan

I understand what you are saying and it is very unfortunate but if you are currently able to manage on SSP then you should be able to cope until the baby is born. You can then receive child benefit and apply for tax credits. When applying for tax credits give an estimate of this year's income as your annual income will be much reduced due to sick leave and maternity leave. You are also entitled to disregard £100/week of SMP when claiming tax credits.
I myself am hoping that my boss doesn't mess up my annual leave payments as my last qualifying week is 30th July and I won't be around to remind her.

The_Write_Girl

When you say this year's income - is that the start of the new tax year? I'm totally new to all this!

Tarzan

Yes, work out how much you will earn from April 2011 until March 2012 and subtract £100/week for any week that you earn SMP. The result is your income for the year. Also apply for a sure start maternity grant of £500 when your baby is born, assuming you are entitled to tax credits.

The_Write_Girl

That's really useful, Tarzan! Thank you.

Tarzan

You're welcome. Hope you enjoy the rest of your pregnancy