Cutting back for maternity leave

lollypopswater

Also smp is £138.18 per week so little bit more than £125.

PeacefulWaters

She will cut back on her pension contributions (saving around £200 per month)

Before taking action, check out what the company is prepared to pick up pension wise.

Where Mrs PW works the firm picks up the employee's contribution during maternity leave.

It's actually worth increasing the pension payments ahead of this!

becominganobsessivesaver

When I was on maternity leave the first time I took a credit card which was interest free on purchases for 15 months, as I knew I would be earning enough, and had the discipline, to pay it all back on my return to work. For some this can be a good option.

Timeflies

PeacefulWaters - that's a very good point - my work will pay my pension contributions while I'm on SMP, so that's a good idea to bump them up before I go on leave - I'll do that :money:

It doesn't give me any more spending money while I'm on maternity leave, but it's still worth having :beer:

sweaty_betty

Thanks all - some really good tips there!

I've had a look at the DFW thread and it seems quite straightforward (in principle!) to cut back.

Re. maternity clothes - a colleague of mine bought a couple of pairs of work trousers, a couple of pairs of jeans and a few long maternity vests, then wore them with long cardigans throughout her pregnancy. I wish I'd done that, I'd have saved a fortune :rotfl:

neneromanova

SMP will be "Statutory Maternity Pay (SMP) - weekly rate for remaining weeks £138.18 or 90% of the employee’s average weekly earnings, whichever is lower"

will they be able to get Tax credits? http://www.hmrc.gov.uk/tools/taxcredits_qualify/question01.htm

Pee

Can she live on the reduced budget? Ideally start living on it now and then there may be a chance to build up some savings. The trouble with a pension holiday is it can be hard to get back into the way of saving that money - there is always something you need it more for until you retire.

katiegizmo

[In terms of spending less on maternity leave - in my day (only a few years ago) we could go to the sure start centres, library story times etc which were either free or quite cheap. From what I understand many are now closed down. Are there any tips for an inexpensive mat leave? The baby is due around spring time, so hopefully walks will be an option, but any other ideas would be great.]

I go to rhymetime at the library with my lo and they still run storytimes too. Not sure if it's called surestart but the is a children's centre near me which run bumps to babies clubs, twins clubs, crawlers group etc all are free or very nearly. So they do still exist in some form. We didn't get to go as waiting list was long but there were several church playgroups which were a couple of quid for 2 hours and included snack and drink for lo and tea/coffee/biccies etc for parents. Might be worth signing up to these early as usually start around 6m old, you aren't obliged to go.
We do/did a few paid classes. For me the money was worth it for lo enjoyment, my sanity and meeting other mums/dads which led to play dates etc. Most do a free/very cheap taster session so she could always go and try a few out but not commit!

For mat clothes I bought new. This time around I've had to buy a few new pieces again as this baby is sitting really low and my old jeans didn't fit! Also different times of the year meant some clothes unsuitable, I've stuck to 2 x jeans, 4-5 leggings (can be worn after for a bit too) and some light dresses and tops which will match eachother. I've sold some of my first preg mat bits and I've made a good amount from them, all at least 50% of what I paid so for me buying new wasn't extravagent. one t-shirt I bought for £7 and sold for £11....

Not sure if still suitable but I got a belly belt which extends your ordinary jeans/trousers and this means I can still wear some of my normal clothes. Last time some lasted until 7 months in.

I got tax rebate at the end of the year after my first, I had changed jobs and moved from full time to part time. I did have to chase with tax office and new employer but it was sorted very quickly.

Glad you posted this thread, have to admit I feel a bit of financial panic with the second one on it's way...!!