Financial Entitlements When Starting A Family

[Louise07]

Hi, me and my partner are keen to try for a baby but my main concern is money. We both work full time and are financially comfortable on what we earn. However, I have a loan which will be paid off in 2 years time in addition to the usual bills and am worried that once i give up work, I wont be able to afford to pay everything, especially the loan every month. I understand that we may be entitled to various benefits ie maternity pay and child benefit etc but how do I know exactly what we will be entitled to before I actually get pregnant? Basically I want to find out exactly how much income we will have with benefits in comparison to what I earn in full time work, until such time I am able to return to work.

[redcrx]

Maternity pay if you take leave from your full time job is 90% of your wages for first 6 weeks and then SMP which is something like �108 for the next 18 weeks.

If you or your partner are working you may be entitled to family tax credit.

Child benefit is payable for every child too, regardless of income.

Once you return to work, family tax credit is still claimed (assuming threshold of earnings is not breached) and can also cover some childcare costs too.

[angeldraws]

hi - wot red x says sounds right - family tax can be claimed after the birth - you should be able to find out what you are entitled to by going to the inland rev site (just google it) and it will do an estimate for youbased on wot u have coming in already......

[Louise07]

Thanks for you suggestions, it's all new to me!

[yummymummy]

If you are working throughout the pregnancy you will get something like 90% wages for 6 weeks, then approx 50% wages for the rest of the maternity leave (currently 6 months but changing to 9 and then 12 over coming months/years). This is direct from employer, and you would have to go back to work for at least 3 months to get to keep this money (unless they change it by the time you do it!).

There is never an ideal time though, but you can get by if you are realistic with budgets etc. Babies don't have to be expensive themselves, but obviously the lifestyle change can be difficult.

[imajenarry]

i'm still on maternity leave .i received 90% of my wages for six weeks then 18 weeks at �106 smp.you are entitlled to take a further 6 months off but it is without maternity pay just means your job is kept open for you for total of a year . i've claimed child benefit which is �17 a week and working family tax credit which with our income is �22 a week.(i've been told that this may increase if i take any of the 6 months unpaid leave but haven't checked into this yet.)i must say once baby's here priorities do change and you don't mind going without certain things because of reduced finances.maybe good idea if have review of things now ,cut back on things so can pay your loan off early.