Quick stats
£2bn The government's annual spend on maternity benefits. In 2007-08, it paid £1.5bn in statutory maternity pay and £260m in maternity allowances. In 2008-09 it expects to pay £1.78bn and £360m
respectively
£117.18 Standard weekly rate of statutory maternity pay (all figures from the Department of Work and Pensions)
Simple saver
Get a free, personalised statement of the maternity/paternity pay and leave you may qualify for, using the government's "interactive guidance on employment rights" tool at direct.gov.uk. Free information on all your rights to pay and leave as prospective or new parents is available from the charity Working Families at workingfamilies.org.uk (0800 0130313).
Advanced saving tips
1. Know your maternity pay rights
Statutory maternity pay is paid to qualifying employees for up to 39 weeks. It is paid at 90% of your average gross (before tax) weekly earnings for the first six weeks, then at the standard rate of £117.18 or 90% of your average gross weekly earnings, whichever is lower, for the remaining 33 weeks.
To qualify for statutory maternity pay, you must have worked continuously for the same employer for 26 weeks by the end of the 15th week before your baby is due, and you must earn an average of at least £90 a week before tax. If you qualify, you're entitled to maternity pay even if you don't intend to return to work, and you can't be asked to repay it. Your employer usually pays maternity pay in the same way as normal pay, so tax and National Insurance is deducted as usual.
To claim maternity pay, you must tell your employer in writing at least 28 days before the date you want to start receiving your pay.
2. Remember all the options
If you don't qualify for maternity pay you might get a maternity allowance, which is paid at a standard weekly rate of £117.18 or 90% of your average gross weekly earnings, whichever is lower, for up to 39 weeks. You may be eligible if you've been employed and/or self-employed for at least 26 weeks in the 66 weeks (15 months) up to and including the week before your baby is due, and you earned more than £30 a week in any 13 of those weeks.
This allowance is paid by the JobCentre Plus either weekly or four-weekly directly to you, and is not liable to income tax or National Insurance (although it may affect certain benefits you receive).
You can claim Maternity Allowance as soon as you've been pregnant for 26 weeks on form MA1, which you can get by calling 0800-0556688 or at jobcentreplus.gov.uk.
3. Fathers, don't forget you can claim, too
If you're a father-to-be, you may have a right to paternity leave of one or two consecutive weeks and statutory paternity pay at a flat rate of £117.18 a week or 90% of your normal pay, whichever is lower.
To qualify for statutory paternity pay, you must be an employee with a contract of employment, have been with your employer for at least 26 weeks by the end of the 15th week before the baby is due, and earn at least £90 a week before tax.
You must be the biological father of the child or the mother's husband or partner, and you must be fully involved in bringing up the child.
To get statutory paternity pay, you must tell your employer in writing at least 15 weeks before the beginning of the week that the baby is due.
4. Check if your employer runs a special scheme
You may get more maternity/paternity pay than the statutory payments if your employer runs its own scheme for new parents. Find out by checking your employment contract or asking your HR department.
Some company schemes require you to pay back some money if you don't come back to work - but you can always choose the statutory arrangement if that suits you better.
Nice little earner
If you're pregnant or have had a baby in the past 12 months, you're entitled to free NHS prescriptions and free NHS dental treatment. To claim these entitlements, you will need a maternity exemption certificate which you can get by filling in form FW8 - this is available from your GP, midwife or health visitor.
Extra saver
Very low-income families on certain benefits can get extra help towards the costs of a new child under the Sure Start Maternity Grant, worth up to £500 per baby. Apply by completing claim pack SF100, available by calling 0800-0556688 or at jjobcentreplus.gov.uk.
Also, note that people who adopt children have statutory rights to paid-work leave, too.
