When you sit down to calculate your new income and outgoings, don’t forget to factor in any financial help you may receive from the government.
If you’re a UK resident with a new baby, you’ll typically be entitled to receive £20.70 per week in Child Benefit for your first child until they’re 16 if they leave full–time education or 20 if they stay in approved education or training. This alone will contribute £1,076.40 per year to help cover your increased outgoings as a parent.
Statutory Maternity Pay (SMP) is paid for up to 39 weeks and you'll receive 90% of your pre–tax weekly pay for the first six weeks followed by 33 weeks at £139.58 or 90% of your average weekly earnings (whichever is lower). For example, if you received £139.58 for the full 39 weeks, this would equate to £5443.62.
Depending on your circumstances, you may also be eligible for Child Tax Credit which provides a basic family element of up to £545 per year.