Furlough entitlement after maternity leave

LucySis1

I was on maternity leave Feb 19-Oct 19. I have therefore been back at work for 4/5 months. I received statutory maternity pay when on leave but as I am a manager my earnings are usually higher. As the entitlement is worked out on average of last years earnings, I will be entitled to much less, and certainly not 80% of my normal salary which I should be earning in the coming months. Of course I’m grateful to be entitled to anything at all, but it seems really unfair that new mums are being penalised due to how it’s calculated. Any advice/is this correct? Thank you. 

gary83

You’re right as you only received statutory maternity pay for a lot of last year your furlough pay will be lower, the way the furlough calculation works is;

If your pay varies and you’ve been employed (or engaged by an employment business in the case of agency workers) for a full year, employers will claim for the higher of either:

• the amount you earned in the same month last year
• an average of your monthly earnings from the last year

Trying to look on the bright side, on a semantics point you aren’t actually entitled to anything. your employer has chosen to apply for the grant for you, some employers haven’t. You might also have a saving on childcare to negate the effect of the lower furlough pay? though I appreciate that doesn’t help if a nursery is still charging full fees, or you were planning on relying on grandparents instead.

LucySis1

Thank you for your reply. Just a bit rubbish isn’t it- it’s a shame any Mums on SMP last year can’t be calculated under the 80% of contracted hours rule just like those who didn’t work for the company last year. I also feel for anyone who may have been off sick last year as they will be affected too. I think it’s one of the faults in the system but looking on the bright side, it’s wonderful we are getting any form of help. I’ve decided to just focus on myself and my family and how we will get through this but it does leave a bit of a bad taste in my mouth. Thanks for confirming this for me. 

calcotti

Depending on your family circumstances do check to see if you might be eligible for Universal Credit to top your income up.
Information here https://www.citizensadvice.org.uk/benefits/universal-credit/. 
Claim online https://www.gov.uk/universal-credit/how-to-claim

There are online calculators to help you assess entitlement  https://www.gov.uk/benefits-calculators

You will be excluded from claiming UC if you have capital/savings over £16,000.

Be aware that claiming UC will end any Tax Credits, Housing Benefit or other means tested benefits you currently get.

prowla

According to the government site https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme

Statutory leave includes maternity leave, paternity leave, shared parental leave, adoption leave, sick leave and parental bereavement leave.

In line with other employees, claims for full or part time employees returning from statutory leave after 28 February 2020 should be calculated against their salary, before tax, not the pay they received whilst on statutory leave.

KindHeartedSoul

All of this information is so useful - thank you to everyone...

calcotti

prowla said: Statutory leave includes maternity leave, paternity leave, shared parental leave, adoption leave, sick leave and parental bereavement leave.

In line with other employees, claims for full or part time employees returning from statutory leave after 28 February 2020 should be calculated against their salary, before tax, not the pay they received whilst on statutory leave.

Good spot - I had overlooked that
OP here is the source for what prowls quoted https://www.gov.uk/guidance/claim-for-wage-costs-through-the-coronavirus-job-retention-scheme#how-much-you-can-claim
Go down to "returning from statutory leave"

sliphi

LucySis1 said:

I was on maternity leave Feb 19-Oct 19. I have therefore been back at work for 4/5 months. I received statutory maternity pay when on leave but as I am a manager my earnings are usually higher. As the entitlement is worked out on average of last years earnings, I will be entitled to much less, and certainly not 80% of my normal salary which I should be earning in the coming months. Of course I’m grateful to be entitled to anything at all, but it seems really unfair that new mums are being penalised due to how it’s calculated. Any advice/is this correct? Thank you. 

No, the CJRS benefit to employers is based on 80% of their usual monthly wage costs. (subject to a maximum limit of £2500 pm per any employee)

What have you agreed with your employer as regards to being furloughed???
Has your employer even offered you that possibility???