Trying to budget for maternity leave.. help?

lynz_bolton

Hi
Can anyone who is on or recently on maternity leave help? I'm trying to work out how my husband and I will manage if i take the 12 months I want off after our baby is born next May. (I like to think ahead plus he's feeling under pressure as I earn more)
So I usually work 37 hours and earn 28k. I'm entitled to the statutory 6 weeks at 90% then 33 wks statutory maternity pay. I then want a further 13 weeks off ideally, with my much longed-for little one.

I know I can claim the £20ish per week for the little one from birth. But is there any other support for my suddenly low income or is it kind of touch luck because I chose not to go straight back to work? I think?? I might be able to claim working tax credit once I go into the 13 weeks with no pay? But it's so confusing.
Appreciate any advice or pointers here, we have saved but it's a scary prospect, then again I don't want to feel pushed back to work too soon after working full time all my adult life and waiting to 35 for this :j

[Deleted User]

I know you want the time with the baby but one thing to consider if you are the higher earner is shared parental leave. Hubby could do the at home for half the time.

Darksparkle

You'll need to provide details of your husband's income also.

lynz_bolton

Thanks, shared leave isn't something my hubby wants to go for which is fine with me, we will manage but if it can be made easier its good to know all options.
His income is 20k.

calcotti

You need to check whether you in a Universal Credit full service area https://ucpostcode.entitledto.co.uk/ucdate

If you are you cannot claim Tax Credits, they are replaced by Universal Credit. The only benefit you may be able to claim is Universal Credit. lots of information here https://www.citizensadvice.org.uk/benefits/universal-credit/

It is means tested so whether you will be eligible for anything will depend on your household circumstances. You will have a standard amount, a childcare element and, if you rent, a housing cost element. This will set the maximum UC entitlement.

From this any earnings will be taken into account. There will be a disregard (called a Work Allowance) and above this a deduction of 63% of earnings will be made from the maximum amount.

If you are in a UC area it works like this:

If you are over 25 your basic couple allowance is £498.89/month
The child element is £277.08
This makes a maximum UC entitlement of £775.97/month.

The Work Allowance is £409 if there are no housing costs included.

Say your earnings (partner’s work and any maternity pay you are receiving) is £1,200/month
Deduct £409 = £791 amount used in calculating UC

Maximum amount £775.95 minus £498.33 (63% of £791) = £277.62 which is the amount of UC payable for the month.

When you do go back to work UC can also help with 85% of childcare costs up to a maximum of £646.35/month.

You can use a benefits calculator to help with trying different figures https://www.entitledto.co.uk

Child Benefit is ignored when calculating UC.

If you income is low you may also be able to claim Council Tax Reduction from your local authority.

lynz_bolton

Wow thanks calcotti
I guess once I'm on stat maternity pay and then once I'm receiving no pay o.k.j would input that as my current earnings?
It's not sounding very promising but certainly worth a go

calcotti

lynz_bolton wrote: »

Wow thanks calcotti
I guess once I'm on stat maternity pay and then once I'm receiving no pay o.k.j would input that as my current earnings?
It's not sounding very promising but certainly worth a go

Depending on how much your husband earns you may be entitled to UC while receiving SMP so you should try a calculation with earnings as SMP plus husband and another with husband only. Roughly, based on my calculation above, if you are not earning you will not get any UC if the earnings are over £1,640/month. If they are just a little below this it may not be worth the hassle of claiming for the little you will get - that might depend on whether your husband's income is steady or variable. This 'break even' figure will be completely different if help with rent is included in your claim because the maximum UC payable will increase and the Work Allowance will reduce to £198.

Do check your post code to see if you are in a UC area. If not you would claim Tax Credits instead but I can't advise how much you might get because they are calculated in a completely different way based on total annual income.

Child benefit is £20.70/week usually paid every 4 weeks.

sheramber

You can try putting some figures into a benefits calculator

https://www.entitledto.co.uk/

lynz_bolton

Big thanks for these suggestions and information!
I'll pay around with the figures tomorrow... forewarned is forearmed:money: