Having a baby is a major life event with significant financial implications. From maternity pay adjustments to childcare costs, here’s how to navigate first baby finances.
Before Baby Arrives
Financial Preparation
Action
Timing
Build savings
6+ months before
Maternity/paternity leave plan
Know your dates
Budget for income drop
Calculate it
Baby purchases
Spread costs
Savings Target
For
Amount
Income gap
3-6 months expenses
Baby essentials
£1,000-3,000
Emergency buffer
£1,000+ extra
Maternity Leave and Pay
Statutory Maternity Pay (SMP)
Period
Payment
Weeks 1-6
90% of average pay
Weeks 7-39
£194.32/week or 90% (lower)
Weeks 40-52
Unpaid
Enhanced Maternity
Many Employers Offer
Better Terms
Full pay for weeks
Often 8-26 weeks
Topped up SMP
Beyond statutory
Check contract
Know your rights
Maternity Allowance
If Not Eligible for SMP
£194.32/week for 39 weeks
Eligibility
26 weeks employment in 66 weeks
Paternity Leave
Statutory Paternity Pay
Duration
1 or 2 weeks
Pay
£194.32/week or 90% earnings
Enhanced
Many employers offer more
Shared Parental Leave
Option
Share leave between parents
Maximum
50 weeks (37 paid)
Flexibility
Take together or separately
Child Benefit
Claim It
Child
Weekly Amount
First
£27.05
Subsequent
£17.90 each
Annual (first child)
~£1,407
High Income Child Benefit Charge
One Parent Earns
Impact
£60,000-80,000
Tapered reduction
Over £80,000
Full clawback
Still worth claiming
For NI credits
NI Credits Important
Even if you opt out of payment due to high income, register for Child Benefit to protect State Pension.