Changes to Statutory Maternity Pay and Maternity Allowance for babies due on or after 1 April 2007
On the 2 December 2004 the Chancellor, in his Pre-Budget Report, announced changes to Maternity Benefits. These improvements, which are included in the Work and Families Act 2006:
- Extend Maternity Allowance and Statutory Maternity Pay from 26 to 39 weeks
- Enable MA and SMP to start on any day of the week, so that MA and SMP start on the same day as maternity leave
- Introduce Keeping in Touch days (KIT) – women may work for a limited period of 10 days without loss of MA/SMP
- Enable the weekly rate of SMP to be divided by 7, to help employers match SMP payments more easily with the pattern of pay in the employment.
The changes will only apply to women expecting babies on or after 1 April 2007; regardless of when their baby is actually born.
Women with babies due up to and including 31 March 2007 will continue to receive payment for a maximum of 26 weeks and benefit from all the current rules.
Further detailed information about these changes will be published here in October 2006.