How to budget for maternity leave

The short answer: plan for three stages. For 6 weeks you get 90% of your pay. For the next 33 weeks you get £194.32 a week, which for most people is a big drop. Then 13 weeks are unpaid. On a £35,000 salary, statutory pay over the whole year comes to about £10,047, roughly £24,953 less than normal before tax.

Your monthly take-home at each stage

The figures are monthly equivalents. Your actual payslips will move about as the stages change part-way through a month. Pension contributions, if you pay them, come off as normal and will lower these figures a little.

How big the gap is over the year

The gap is before tax. In take-home terms it is smaller, because you also pay less tax and National Insurance while your pay is low.

A simple way to budget

1. List your monthly costs: rent or mortgage, bills, food, travel, debts. Add new baby costs such as nappies, formula and childcare deposits.
2. Take away your income for each stage, using the table above or the calculator. Include your partner's income if you share bills.
3. Add up the gaps. That total is what you need to save or cover in other ways.
4. Start early. Saving the gap over 6 to 9 months of pregnancy is much easier than over 3.

Travel and work lunches drop while you are off, so the real gap is often a little smaller than it looks on paper.

Money that helps fill the gap

• Enhanced maternity pay: many employers pay more than the legal minimum, such as full pay for a few months. Check your contract or handbook. The NHS scheme pays 8 weeks at full pay and 18 weeks at half pay plus SMP if you have a year's service and plan to return.
• Child Benefit: £27.05 a week for your first child, about £117 a month. Claim it soon after the birth; it can only be backdated three months.
• Your holiday: it keeps building up on leave, so adding it to the end means more paid weeks.
• Keeping in touch days: you can work up to 10 days during leave without losing SMP. Your employer pays you for them at a rate you agree.
• Lower deductions: student loan repayments stop when your pay is below the threshold, and you may get tax back.
• Universal Credit: if your household income drops enough, you may qualify. Check with a benefits calculator.

Do you qualify for SMP?

You need to have worked for your employer for at least 26 weeks by the 15th week before your due date, and earn at least £129 a week on average. If you do not qualify, for example because you are self-employed or changed job recently, Maternity Allowance pays up to £194.32 a week for 39 weeks instead.

Shared parental leave and your partner

Your partner can usually get 2 weeks' paternity leave at £194.32 a week, or 90% of their pay if lower. You can also end your maternity leave early and share the rest as shared parental leave. If your partner earns more, or has a better scheme, that can mean more money coming in overall.

Bills you might be able to pause

Some lenders allow a mortgage payment holiday, but interest keeps building up, so it costs more in the end. Ask before you miss anything. See overpaying or saving if you have been overpaying: you may be able to take that back or stop it for now.

Example: one household's maternity budget

Here is an example for someone on £35,000 who pays most bills alone. Your own figures will differ, but the method is the same.

Over 33 weeks on SMP plus 13 unpaid weeks, this household would need about £13,332 from savings, a partner or other help. Weeks 1 to 6 at 90% pay usually cover costs, so any spare from then can go towards later months.

Help you may be able to get

Try not to borrow your way through it

Credit cards and buy now, pay later are easy to use when money is tight, but the repayments land just as you return to work and childcare costs start. If you do need to borrow, a 0% card with a clear plan to clear it is far cheaper than an overdraft. See which debt to pay off first.

• Buy baby kit second-hand or ask family for specific items rather than gifts you may not use.
• Pause or cancel subscriptions you will not use while at home.
• Use free baby groups at libraries, children's centres and family hubs.
• Check whether your energy, broadband or phone provider has a cheaper tariff.

Your pension during maternity leave

While you are on paid maternity leave, your employer must keep paying pension contributions as if you were on your normal pay. You only pay contributions on what you actually receive. During unpaid leave, contributions usually stop unless your scheme says otherwise.

Planning for going back

• Back full-time: your income returns, but childcare can cost hundreds a month. Budget for it before your leave ends.
• Part-time or flexible: you can ask for flexible working from your first day in a job. Your employer must consider it properly. See what pro rata means for your pay.
• Longer break: you can take unpaid parental leave of up to 4 weeks a year per child, up to 18 weeks in total, once you have a year's service.

Working parents in England can get funded childcare hours from 9 months old, and Tax-Free Childcare adds £2 for every £8 you pay in, up to £2,000 a year per child. Both can make returning to work pay much better.

This is general information, not financial advice. Figures are for 2026/27. Take-home figures use England, Wales and Northern Ireland tax rates.