Maternity pay 'financial support' update issued by DWP
The Government has issued a formal response to demands for improved maternity pay after a parliamentary petition highlighting the financial struggles of new mothers gained significant traction.
The petition, created by Joeli Brearley and reaching the required 10,000 signatures threshold on 19 September, called for mothers to receive 12 weeks of Statutory Maternity Pay at 90 per cent of their salary, rather than the current system which drops to £194.32 per week after six weeks.
Under current regulations, Statutory Maternity Pay is available for up to 39 weeks. Eligible mothers receive 90 per cent of their average weekly earnings for the first six weeks, followed by either £194.32 or 90 per cent of average weekly earnings, whichever is lower, for the remaining 33 weeks. Both tax and National Insurance are deducted from these payments.
The flat rate of £194.32 represents approximately 44 per cent of the National Living Wage and roughly 35 per cent of UK women's median weekly earnings, making it challenging for many families to manage financially during maternity leave.
International comparisons
An OECD report places the UK ninth lowest out of 33 European countries for full-rate equivalent paid maternity leave, and fourth lowest when home care leave is included. By comparison, Sweden offers 480 days of parental leave at 80 per cent of salary, whilst Denmark provides 52 weeks with provisions for sharing between partners.
Impact on mothers
Research indicates the financial impact is forcing mothers back to work earlier than planned. A 2024 survey by charity Pregnant Then Screwed, involving 35,800 respondents, found that 43 per cent of mothers were compelled to take just 12 weeks or less of maternity leave due to low statutory pay. Financial anxiety among pregnant women and new mothers has risen sharply, from 64 per cent in 2022 to 73 per cent in 2024, according to annual surveys by Maternity Action.
The petition emphasised that statutory maternity pay increased by just 12.7 per cent between 2023 and 2026, whilst the National Living Wage rose by 22 per cent over the same period. It cited research linking maternity leave under 12 weeks to increased depression, poorer maternal wellbeing and lower sensitivity to infant needs.
The situation is particularly acute because only around 13 per cent of UK women receive enhanced Occupational Maternity Pay from their employer, meaning the vast majority depend entirely on statutory payments. The alternative option of Shared Parental Leave has seen minimal uptake, with government data showing only 1 per cent of mothers and 4 per cent of fathers using it.
For those ineligible for Statutory Maternity Pay, Maternity Allowance is paid directly by the Department for Work and Pensions to self-employed women and employed women who do not qualify for employer-paid benefits. To receive Maternity Allowance, claimants must have worked 26 weeks within the 66 weeks before their due date and earned at least £30 per week for 13 of those weeks.
Government position
In its official response, the Department for Work and Pensions acknowledged the financial pressures facing new parents but maintained that maternity pay is designed to provide support rather than replace full earnings. The department pointed to additional support available through Universal Credit, Child Benefit, the Sure Start Maternity Grant of £500, and Healthy Start vouchers.
The Government noted that from April 2026, statutory payments were uprated by 3.8 per cent in line with the Consumer Prices Index, increasing the standard weekly rate from £187.18 to £194.32, though this still lags behind wage growth.
Officials emphasised that whilst employers pay Statutory Maternity Pay to eligible workers, they can recover at least 92 per cent of these costs from HMRC, with small employers able to reclaim 100 per cent plus an additional 3 per cent to cover employer National Insurance contributions.
Ongoing review
The response highlighted the Parental Leave and Pay Review launched on 1 July 2025, which is examining how the system can better support families whilst balancing the needs of parents, employers and taxpayers. The 18-month review, with its call for evidence from stakeholders closing in August 2025, is exploring existing parental pay entitlements and considering evidence on maternal health and wellbeing.
The Government stated it has engaged with maternity advocacy groups who have shared concerns about pay levels and their impact on mothers' health and family finances. Officials said they are also examining international models, though they cautioned that cross-national comparisons must account for differences in labour markets and broader family support packages.
The review is expected to conclude in early 2027 with findings outlining next steps for potential reforms. Until then, the current maternity pay system remains in place, providing support for eligible mothers during pregnancy and the first year following birth.
