Maternity leave and UC

nessie216

I would welcome any advice for my situation as follows:


I am currently pregnant with baby number 2 (DD is 5). I am the sole earner in the household as DH is a stay at home parent. My salary is currently £37k, so i know i am not entitled to any benefits (other than standard child allowance) at the moment.


My maternity leave starts on 8/3/19 and my company has no additional maternity allowances so i will be on 90% pay for 6wks and the £145 per week for the next 33 weeks.


This will reduce our monthly income dramatically, i.e. from approx £2k per month to £580 to £725 per month (i then need to deduct £100 per month for private mileage allowance). My mortgage alone is £660 per month.


I have briefly spoken to a guy from HMRC on the phone, but as soon as i mentioned my salary he said i wasn't entitled to anything (i'm in a UC area now) because i haven't claimed before and i wouldn't be able to make any claims etc until the baby is here, which IMO is crazy (surely most people budget?)


My question is do you think we will be entitled to any help whilst i am on maternity leave?


If not, any tips on how to cope with such a dramatic change in earnings?


Any help/advice is appreciated

poppy12345

Pop your details into a benefits calculator as if you're on maternity leave now and see what it comes up with.
https://www.entitledto.co.uk/

brewthebear

Its not helpful to say this but surely you thought about the money issues before you decided on another child ?

clairec79

I was in a similar situation in that I was the main wage earner while DH was the stay at home parent, we saved before I went off on maternity leave and then I went back earlier

calcotti

Maximum UC entitlement with two children would be as follows:
Joint claimants either aged 25 or over: £498.89 per month
for a child born before 6 April 2017 £277.08 per month
second child £231.67 per month

This makes maximum entitlement £1,007.64/month

When you get Statutory Maternity Pay of £145.18 this is treated as earnings which means that only 635% is deducted from the maximum UC entitlement (a monthly deduction of 63% x £628.33)

UC payable is £1,007.64 - £395.85 = £611.79/month

When SMP runs out you will get the £1,007.84.

Note that while you are at home I think your partner may be required to look for work.

Please do use a benefits calculator as suggested by poppy - hopefully it will give you the same answer.

Alice_Holt

As calcotti says, you will both have separate claimant commitments. You partner will be required to job search.

I think the £145 maternity allowance will be deducted in full from any UC entitlement. So, my view differs from calcotti on this.
You may wish to check this. As poppy and calcotti say - see what a benefits calculator come up with.

calcotti

Alice_Holt wrote: »

I think the £145 maternity allowance will be deducted in full from any UC entitlement. So, my view differs from calcotti on this.

The Universal Credit Regulations 2013

Employed earnings
55.—(1)This regulation applies for the purposes of calculating earned income from employment under a contract of service or in an office, including elective office (“employed earnings”)…..
(4)The following benefits are to be treated as employed earnings—
(a) statutory sick pay;
(b) statutory maternity pay;
(c) ordinary statutory paternity pay;
(d) additional statutory paternity pay; and
(e) statutory adoption pay.

Because treated as earned income subject to the 63% taper (whereas if treated as unearned income would be deducted in full).

Icequeen99

calcotti wrote: »

The Universal Credit Regulations 2013

Employed earnings
55.—(1)This regulation applies for the purposes of calculating earned income from employment under a contract of service or in an office, including elective office (“employed earnings”)…..
(4)The following benefits are to be treated as employed earnings—
(a) statutory sick pay;
(b) statutory maternity pay;
(c) ordinary statutory paternity pay;
(d) additional statutory paternity pay; and
(e) statutory adoption pay.

Because treated as earned income subject to the 63% taper (whereas if treated as unearned income would be deducted in full).

I think you're both talking about different things - SMP is treated as employed earnings and subject to the taper. Maternity allowance is unearned income with no taper. The OP talks about maternity allowances but I assume she is actually referring to SMP.

IQ

calcotti

Icequeen99 wrote: »

I think you're both talking about different things - SMP is treated as employed earnings and subject to the taper. Maternity allowance is unearned income with no taper. The OP talks about maternity allowances but I assume she is actually referring to SMP. IQ

Well spotted - I hadn’t noticed that. You are right I had inferred from OPs post and reference to initial 90% earnings that she would be getting SMP.

Agreed that Maternity Allowance would be treated as unearned income and taken into account in full.