First child on the way

MattLcfc

Hi all, not sure if I am in the right place, but I am hoping for a bit of advice in regards to our income after the birth of our first child, due January next year. Particularly following Yesterdays budget announcement.


We're both over the moon and can't wait to be parents. In the space of 6 month we have got married, bought our first house and are now expecting to be parents. Things couldn't be better, but I want to make sure that we will be in a position for me to be able to support my wife to take as long as she likes on Maternity leave and to give her the choice of what hours she would like to work (if any) once the maternity period is over.


Our current salaries are as follows:
Me: £19500 (+bonus & overtime aprrox £1500 extra per year)
My Wife: £18500.


My Wife will go on Maternity leave just before her workplace finishes for Xmas and will be receiving Statutory Maternity pay for 9 months, with the plan for her to return to work around September time (most likely on part time hours)


I have absolutely no idea what entitlements we will receive or how tax credits, working credits, child benefits or anything similar work, which is particularly difficult as I like to budget month by month well in advance so I know what we have incoming, out going and what is spare & available for saving/safety net.


Our current joint monthly income after tax is roughly £2,750, with outgoings before any spending money for ourselves at £1800. My concern is will there be much, if any funds spare once my wife is on Maternity leave. We will be left with my income of £1445 a month & Statutory Maternity of £139.58 a week which will equate to £558.32 a month, meaning a combined total of just over £2000 Per month, so there is very little for spending and literally nothing spare.

And help our guidance regarding any additional benefits we would be entitled to would be very much appreciated.

cte1111

Congratulations on your news. Once the baby is here, then you will be entitled to Child Benefit, which will be £20.70 a week.
https://www.gov.uk/child-benefit/what-youll-get

I don't think you will be able to claim anything else, other than the maternity pay that you already know about. In the meantime, you need to look at where your £950 'spare' money is going each month currently. Ideally save as much as this as you can for the next few months, in order to be able to fill the gap whilst your wife is on maternity leave.

If you are both intending to work after the baby is born, then it's possible that you as a family might be able to claim tax credits to go towards the costs of childcare. You will need to get an approximate cost for this, then you can try out scenarios with tax credit calculators:
https://www.gov.uk/child-tax-credit

These are also being changed in the budget that was announced yesterday, hopefully the appropriate information websites will also be updated soon to reflect this.

I think that it's lovely that you want to be able to "make sure that we will be in a position for me to be able to support my wife to take as long as she likes on Maternity leave and to give her the choice of what hours she would like to work (if any) once the maternity period is over". However I think this is probably unrealistic on your current wage.

pmlindyloo

I suggest that you go over to the Debtfree wannabe forums (not just for those with debt) and do a statement of affairs - someone will tell you how to do this.

They will then be able to suggest ways that you can budget and get your out goings as little as possible.

Also have a good look at all the articles on the site (black banding at the top of the website) and start by making sure you are on the best rates for utilities/insurance etc etc

As you will no doubt be aware from the budget the emphasis is now on taking responsibility for your own financial affairs rather than relying on benefits. (This is not a 'dig' - just being realistic about the current economic conditions)

There are basically two ways of managing your finances - increasing your income and decreasing your expenditure.

I understand totally your desire to have family time. You can try to 'think outside the box' and arrange your life so that perhaps your wife can work at weekends when you are at home or you take on some extra work.

If you look at the debtfree wannabe forum threads you will see how amazingly clever people are at managing their finances.

Good luck and congratulations. (By the way, babies cost very little. They will not care whether you have spent hundreds of pounds on them as long as they are loved, fed and warm.) (Lots of thread about this too if you do a search)