What benefits can I claim when having a baby UK?

Child Benefit (£26.05/week first child), Maternity Allowance or SMP if working, Sure Start Grant (£500 if on benefits), Tax-Free Childcare (20% government top-up when returning to work), and potentially increased Universal Credit.

How much does it cost to have a baby UK?

First year: £6,000-15,000 for essentials plus nice-to-haves. Monthly ongoing: £200-500 for basics. Plus childcare when returning to work: £10,000-20,000/year. Budget for reduced income during maternity leave too.

When should I apply for Child Benefit UK?

As soon as possible after birth — within 3 months to avoid losing payments. Apply online at gov.uk. Even if high earner (over £60,000), register for NI credits even if not taking payment. Don't lose State Pension years.

Should new parents get life insurance UK?

Yes, especially if you have a mortgage or one parent would be primary carer. Life insurance covers mortgage and provides income replacement. Critical illness insurance also worth considering. Both relatively cheap when young.

Financial Checklist for New Parents UK

A new baby brings joy — and financial changes. Here’s your complete money checklist.

Read more: See our Cost Of Living guide for a complete overview of this topic.

Immediate Actions

As Soon as Baby Arrives

Action	Timeline
Register birth	Within 42 days
Apply for Child Benefit	Within 3 months
Update bank/insurance	First week
Begin maternity/paternity pay	Automatic (if eligible)

First Month Priorities

Priority	Action
1	Child Benefit claim
2	Check all benefit entitlements
3	Update household budget
4	Review insurance needs
5	Start planning childcare

Benefits to Claim

Child Benefit

Details	Amount
First child	£26.05/week
Additional children	£17.25/week each
Annual (first child)	£1,355
Claim at	gov.uk

High Income Child Benefit Charge

If Earning	Impact
Under £60,000	Keep all benefit
£60,000-80,000	Partial claw-back
Over £80,000	All clawed back
Still register	For NI credits

Why Register Even If High Earner

Reason	Impact
NI credits	For stay-at-home parent
State Pension	Protected years
NI number	For child at 16
One parent lower earner	May still qualify

Maternity/Paternity Pay

Statutory Maternity Pay	Details
First 6 weeks	90% of average pay
Remaining 33 weeks	£184.03/week (or 90% if lower)
Total paid leave	39 weeks
Unpaid leave	Up to 52 weeks

Statutory Paternity Pay	Details
Duration	1 or 2 weeks
Rate	£184.03/week (or 90%)
Can split	Into 2 separate weeks

Shared Parental Leave

Feature	Details
Total leave	50 weeks can be shared
Pay	37 weeks at £184.03
Flexibility	Both parents can take
Notice	8 weeks required

Other Benefits

Benefit	Who Qualifies
Sure Start Grant	On income-related benefits
Healthy Start vouchers	Low income
Universal Credit	Income dependent
Council Tax Reduction	Income dependent
NHS prescriptions	Free during pregnancy +1 year

Budget Adjustments

Income Changes

Factor	Impact
Maternity pay	Often less than salary
Potentially one income	For period
Career break	May be longer than planned
Return date	May change

Create New Budget

Income Side	Adjustment
Main earner	May reduce
Secondary earner	May stop
Child Benefit	Add
Other benefits	Add

Expense Changes

Category	Change
Baby costs	New category
Childcare (later)	Major addition
Going out	Likely decreases
Commuting	May reduce
Food	May increase slightly

Childcare Planning

Research Early

Action	When
Research options	During pregnancy
Nursery waiting lists	Put name down early
Childminder search	Check availability
Family help	Discuss feasibility

Childcare Costs

Type	Approximate Cost
Nursery (full-time)	£1,000-1,800/month
Childminder	£800-1,200/month
Nanny (shared)	£1,200-1,600/month
Family	Often free

Government Help

Scheme	Benefit
Tax-Free Childcare	20% top-up (max £2,000/year)
Free hours (2 years)	15 hours if eligible
Free hours (3-4 years)	15 hours universal
Extended hours	30 hours if both work

Tax-Free Childcare

How It Works	Details
You pay £8	Into account
Government adds £2	20% top-up
Use for	Registered childcare
Maximum top-up	£2,000/year/child
Set up at	gov.uk

Free Hours Timeline

Age	Hours	Notes
2 years	15 hours	If low income
3 years	15 hours	All children
3-4 years	30 hours	If both parents work

Insurance & Protection

Life Insurance

Priority	If You Have
Essential	Mortgage
Essential	Partner/children depending on you
Important	Any debt

How Much Cover

Consideration	Amount
Mortgage	Cover full amount
Income replacement	10x salary
Childcare costs	Until 18
Or combination	Of all three

Types of Life Insurance

Type	Best For
Term insurance	Mortgage/children
Decreasing term	Mortgage only
Family income benefit	Regular income payout
Level term	Fixed payout

Critical Illness Cover

What It Does	Details
Lump sum	If diagnosed with specified illness
Can add to	Life insurance
Consider for	Main earner
Cost	More than basic life

Cost Examples

Cover	Monthly Premium (30s)
£200,000 life (25 year)	£8-15
Plus critical illness	£25-50
Income protection	£30-60
Varies by	Age, health, smoker

Wills & Legal

Make a Will

Why Essential	Details
Guardianship	Who raises children
Asset distribution	Your choice
Without will	Intestacy rules apply
May not go	To who you want

Will Basics

Include	Details
Guardian nomination	For children
Asset distribution	Property, savings
Executors	Who carries out wishes
Life insurance trusts	Consider for tax

Cost of Wills

Option	Cost
Online will service	£30-100
Solicitor (simple)	£150-300 each
Solicitor (complex)	£500+
Free will schemes	Charities offer

Financial Preparation

Emergency Fund

Before Baby	Target
Minimum	3 months expenses
Ideal	6 months expenses
Include	Maternity leave period
Both incomes	If possible

Savings for Baby

Purpose	Amount
Initial equipment	£1,000-3,000
Maternity leave buffer	Extra for reduced income
Ongoing costs	Build up £200-300/month

Junior ISA

Feature	Details
Annual limit	£9,000
Tax-free	Growth and withdrawal
Access	At 18 (child’s money)
Good for	Long-term savings

Checklist by Timing

During Pregnancy

Task	Done?
Research childcare
Calculate budget impact
Build/top up emergency fund
Check maternity entitlements
Get life insurance quotes
Consider making wills

First Week

Task	Done?
Register birth
Apply Child Benefit
Notify employer
Take time to recover

First Month

Task	Done?
Claim all benefits
Set up life insurance
Make/update wills
New budget in place
Check bank accounts

Before Returning to Work

Task	Done?
Childcare confirmed
Tax-Free Childcare registered
Budget for childcare costs
Discuss flexible working
Check free hours eligibility

Summary

Priority Actions

Priority	Action	Why
1	Child Benefit claim	Money + NI credits
2	Life insurance	Family protection
3	Budget review	Income changes
4	Make wills	Essential with children
5	Childcare research	Long waiting lists

Key Numbers

Item	Amount
Child Benefit	£1,355/year
Tax-Free Childcare	Up to £2,000/year
SMP (39 weeks)	~£7,700
First year costs	£6,000-15,000
Life insurance	£8-50/month

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