10 things you should know about SMP (Statutory Maternity Pay)
As most people end up on statutory maternity pay for at least a portion of their maternity leave, I thought it would be a good idea to outline some FAQs or quirks of SMP that you should know before going on leave so there are no nasty surprises or your employer gets it wrong! ⬇️
How much is it:
I think no-one pays much attention to the actual rate of statutory maternity pay until you’re there and about to claim it - and it’s often a nasty shock.
For the tax year of 26-27 the rate is £194.32 per week, less than half the national minimum wage.
Which means you really need to think about what you’re going to do for those SMP only weeks (and the unpaid portion of leave if you’re taking a full year!). Main priorities being: how are you going to cover bills and how much do you need to save before leave to address the shortfall.
2. Once you’ve qualified for it - it’s yours!
To qualify for SMP you need to have been employed by your employer 41 weeks before due date, and made an average of £129 a week during your qualifying weeks.
Once you’ve qualified for it - you are entitled to it. Even if you quit your job, are made redundant or the business closes (in the last case, you would contact the government to claim the rest from them)
3. You never have to pay SMP back
SMP is not subject to any clawback clause rules. If you quit the job, you never have to pay back SMP. If you quit your job, have been paid enhanced pay and there is a clawback clause - the amount you pay back should always be less the SMP payment.
4. The rate usually goes up every April
SMP usually increases every year in line with Septembers inflation rate. If you are on maternity leave at the time of the increase, your employer should automatically increase the SMP rate you receive.
5. You can claim SMP for as many jobs as you are eligible
If you have two jobs and you qualify for SMP at both, you will receive 2x SMP. Three jobs that you are eligible for SMP at, you will receive 3x SMP etc.
6. SMP is taxable
SMP is legally treated as regular earnings and is subject to tax. However, because it is a reduced income, lots of recipients' total earnings for the year don't exceed their tax-free personal allowance, meaning no tax is ultimately deducted.
7. You still pay into your pension whilst on SMP
Your pension contributions are based on your actual earnings on maternity pay. So if you normally pay 3% towards your pension, you will be paying 3% of SMP into your pension.
8. If your pay is incorrect contact the statutory pay disputes team
If you think your employer has calculated your SMP incorrectly or they are refusing to pay it, call HMRC Statutory Pay Disputes Team.
9. Your company is being reimbursed for your SMP
Don’t feel guilty about claiming SMP - your company gets most if not all (and then some!) back from the government.
Small employers are repaid 109% of the SMP, larger employers are repaid 92%.
10. You are allowed to do self-employer work on SMP
Unless your contract expressly forbids it - you are allowed to do self-employed work on SMP without it affecting your maternity pay. The first £1000 you make via self employment is tax free, after that you need to register as self employed and fill out a self-assessment.
Any questions on statutory maternity pay? I’d be happy to help! ✍️
"What, is that all I get?"
That’s the gut-punch most parents feel when they realise how little maternity pay actually covers. Bills don’t pause. Life doesn’t get cheaper. But there are ways to ease the pressure - and unlock money you’re probably missing out on.
This masterclass runs through:
Create a compelling business case to ask for increased maternity/paternity pay
Negotiate a better parental leave package (even if you're the first to ask)
Use KIT days to your advantage to earn more without losing pay
Understand if and how you can do self-employed or second job work during leave
Claim benefits that most people miss but could significantly boost your income
Navigate how pay rises, bonuses, and commission affect your leave pay
Tap into underused financial hacks like marriage allowance and student loan refunds
This is for you if…
You’re planning maternity leave or thinking about having a baby
You’ve been shocked by how low your income will be during that time
You’re financially anxious about the months ahead
You want to feel in control of your money and know you’ve done everything you can
What makes this different?
This isn’t another fluffy “save on coffee” budgeting talk. It’s strategic, legally aware, and focused on results.
You’ll leave knowing:
✅ Exactly what to ask your employer for
✅ How to claim money you didn’t know you were owed
✅ What steps to take this week to make your maternity leave more financially secure
