Is it worth my wife going back to work for 3 months after maternity leave?

BaconandEggs

We are trying to work out the financial difference it would make if my wife were to go back to work after maternity leave.

She is due to start maternity leave in August, using about 4 weeks of holiday prior to the expected due date in September. She has been told that she would be able to go back on a part-time basis at work. We have been told that she would effectively get more maternity pay if she were to return to work.

We are reluctant to use a nursery and my wife will be staying at home to look after baby in the long run. However, we are interested to know the difference it would make if my wife were to return to work on a part time basis.

A number of things would need to be factored in to work this out - and I would be grateful for any advice about things we might have missed off.

Additionally, we are not sure of many of the costs of things in this list.

I've listed those factors I can think of below.

She would be working 3 days a week and I would be taking a day off per week for the 3 months. Grandparents have offered to look after baby for the 2 days we are both at work or we could use a nursery for the 3 month period.

In:
Income for wife - 3 days/week (net=around £50-58/day)
Holiday accrued for wife on part-time basis
Extra maternity pay for returning to work = ????
Any benefits? Not sure we would be entitled. I earn around £37k gross working 40.5 hours a week split between employed and self employed work. We have no other children and claim no other benefits.
Any other things?

Out:
Travel to work for wife £8-16/week
My travel to take baby to grandparents £56/week OR Nursery costs 2 days/week 8am to 6.30pm = ???
Any other things?

Would be grateful for any advice on this.

daisiegg

I don't know the answers to your questions but I do know that where I work (I'm a teacher) if you take maternity leave and then don't come back to work at all, you have to pay back a chunk of your maternity pay. Could this be what they mean by 'getting more maternity pay if you return to work'? I know loads of women who've just come back for 12 weeks in order to not have to pay back the maternity pay, then left (or often gone back on maternity with another pregnancy after the 12 weeks lol!)

BaconandEggs

Thanks for your reply daisiegg.

I wonder if going back on a part time basis effectively means that you need to do more than 12 weeks to be entitled to this "extra" maternity pay?

Pregnant again so soon after the first baby? I've known this to happen to one couple who I know. I suppose it depends on how the first pregnancy goes - but doesn't your body need time to recover?

fluffnutter

BaconandEggs wrote: »

Thanks for your reply daisiegg.

I wonder if going back on a part time basis effectively means that you need to do more than 12 weeks to be entitled to this "extra" maternity pay?

You both need to be really clear on the terms of her maternity pay before you make any decisions, i.e. will your wife have to repay part of her maternity pay if she doesn't return to work (probably), how long does she need to return for in order for this retention period to have elapsed, what happens if she returns part-time.

Until you know the answers to these questions, you can't answer your main question. Bear in mind also, that work is not merely about being paid a wage. Your wife might miss the adult interaction/sense of identity etc. that a job gives her. Alternatively, she may be loathe to ever leave her baby. It's difficult to tell how she'll feel until she's actually in the situation.

Additionally, grandparents (while enthusiastic at the moment) might soon feel exhausted and resentful if they're the main carers of your baby during the time your wife's at work. Will you be paying them?

BaconandEggs

fluffnutter wrote: »

You both need to be really clear on the terms of her maternity pay before you make any decisions, i.e. will your wife have to repay part of her maternity pay if she doesn't return to work (probably), how long does she need to return for in order for this retention period to have elapsed, what happens if she returns part-time.

Until you know the answers to these questions, you can't answer your main question. Bear in mind also, that work is not merely about being paid a wage. Your wife might miss the adult interaction/sense of identity etc. that a job gives her. Alternatively, she may be loathe to ever leave her baby. It's difficult to tell how she'll feel until she's actually in the situation.

Additionally, grandparents (while enthusiastic at the moment) might soon feel exhausted and resentful if they're the main carers of your baby during the time your wife's at work. Will you be paying them?

Thanks Fluffnutter.
These are definitely questions we need to find the answers to. I know it will differ from place to place - but what are the general rules people have experienced with regard to:
How much you need to pay back?
How long you need to go back for (if FT/PT)?

My wife (at the moment) is very keen to finish her employed work. This is due to a number of reasons including changing policies related to shifts (later) and locations (further away). Any free time she gets (may not be a lot for a long while we understand) she wants to concentrate on her self-employed work.

Grandparents feelings towards looking after baby may change. We need to factor in the possibility that we will need to use a nursery for some or all of this time. No idea how much they charge. We do plan on paying the g.parents should they agree to babysit. However, they are pretty comfortable so it would be as a thankyou and I am not sure how much would be appropriate. We're easy going but could see how this could become a sore point - £30 day (too much too little).

It's all very confusing!

I like your sig by the way. Excellent!

GobbledyGook

It totally depends on the maternity package. For me going back was a no brainer because the difference was massive -

Not going back - 6 weeks x Full pay + 33 Weeks SMP
Going back - 3 months full pay + 3 months 75% pay + 3 months half pay (in my previous pregnancy going back was 3 months full pay & 3 months half pay so still well worth it).

12 weeks isn't that long if it makes a massive financial difference to you. It also gives your wife the chance to see how she feels. In my first pregnancy I was desperate to finish work and planned to be a 24/7 full time Mum. Yet when the time came and I was offered the chance to do 1 day a week I jumped at it. You just have no idea how you'll feel when the time comes.

Also, and obviously I've no idea what you do, a year plus is a long time so it can be worth keeping the plan to go back because anything could happen to you and/or your job between now and the time for going back.

BaconandEggs

GobbledyGook wrote: »

It totally depends on the maternity package. For me going back was a no brainer because the difference was massive -

Not going back - 6 weeks x Full pay + 33 Weeks SMP
Going back - 3 months full pay + 3 months 75% pay + 3 months half pay (in my previous pregnancy going back was 3 months full pay & 3 months half pay so still well worth it).

12 weeks isn't that long if it makes a massive financial difference to you. It also gives your wife the chance to see how she feels. In my first pregnancy I was desperate to finish work and planned to be a 24/7 full time Mum. Yet when the time came and I was offered the chance to do 1 day a week I jumped at it. You just have no idea how you'll feel when the time comes.

Also, and obviously I've no idea what you do, a year plus is a long time so it can be worth keeping the plan to go back because anything could happen to you and/or your job between now and the time for going back.

Hi - thanks - that is a massive difference. How long did you have to go back for working 1 day/week.
All good points.

TeamLowe

where i work is similar to Gobbledygook and it is just a flat 3 months, doesn't take hours into account.
i could also choose to have the extra pay (they call it occupational maternity pay) as a lump sum when i'd return to work. so that might be an option, as obviously if you don't return you've nothing to pay back x

LittleMoog

Another point to consider is that if your wife is going back part time, at some point during the year her pay may alter to reflect this. EG, my maternity package is full pay for 9 months, but if I plan to return part time, at 6 months it drops to my new salary. If I don't return for 6 months after maternity leave, I have to repay everything over the level of SMP.

BaconandEggs

Where is the best place to find this info? In her contract - or speaking to someone in HR?

BaconandEggs

TeamLowe wrote: »

where i work is similar to Gobbledygook and it is just a flat 3 months, doesn't take hours into account.
i could also choose to have the extra pay (they call it occupational maternity pay) as a lump sum when i'd return to work. so that might be an option, as obviously if you don't return you've nothing to pay back x

Thanks -in some ways not receiving the extra would be better as it might be difficult to pay back if spent. However, receiving it in the first place does raise the opportunity of stoozing the amount.