Family Finance

Maternity Allowance vs SMP: Which Are You Entitled To?

SYM

If you're pregnant and trying to work out what financial support you'll receive during maternity leave, you're not alone — the system can be confusing. The two main maternity payments in the UK are Statutory Maternity Pay (SMP) and Maternity Allowance (MA). They serve the same basic purpose but have different eligibility criteria, different pay rates, and are paid by different bodies. Understanding which one you qualify for — and how much you'll actually receive — is the first step towards solid financial planning for your growing family. Use the SYM app to start building a maternity savings buffer as early as possible in your pregnancy.

Statutory Maternity Pay (SMP) Explained

Statutory Maternity Pay is the more generous of the two benefits and is paid by your employer for up to 39 weeks. For the first 6 weeks, you receive 90% of your average weekly earnings with no upper cap — this can be a significant amount for higher earners. For the remaining 33 weeks, you receive the flat statutory rate of £187.18 per week or 90% of average weekly earnings, whichever is lower. SMP is paid through your normal payroll and is subject to tax and National Insurance. Your employer reclaims the cost from HMRC, so it shouldn't affect your relationship with your employer. The earliest SMP can start is 11 weeks before your due date.
  • •Weeks 1-6: 90% of average weekly earnings (no cap)
  • •Weeks 7-39: £187.18 per week or 90% of average weekly earnings (whichever is lower)
  • •Weeks 40-52: Unpaid but you retain your right to return to work
  • •SMP is paid through your employer's payroll with normal tax and NI deductions
  • •You continue to accrue annual leave and pension rights during SMP

Maternity Allowance (MA) Explained

Maternity Allowance is a benefit for women who don't qualify for SMP. This typically includes self-employed women, those who recently changed jobs, women who work for a small employer, and those who haven't been in their current job long enough. MA is paid by the Department for Work and Pensions (DWP) rather than your employer, and it's paid for up to 39 weeks at a flat rate. Unlike SMP, there is no enhanced first six weeks at 90% of earnings — the rate is the same throughout. However, MA is not subject to National Insurance contributions, which slightly reduces the effective gap between the two benefits.
  • •MA is paid at £187.18 per week or 90% of average weekly earnings (whichever is lower) for the full 39 weeks
  • •There is no enhanced rate for the first 6 weeks (unlike SMP)
  • •MA is subject to income tax but not National Insurance
  • •MA is paid directly by the Jobcentre Plus / DWP into your bank account
  • •You can work up to 10 'keeping in touch' days during MA without losing your payment

Eligibility: SMP vs Maternity Allowance

The eligibility criteria for SMP and MA are distinctly different. SMP requires a specific employment relationship with a single employer, while MA has a more flexible employment history test that's designed to catch those who fall through the SMP net. You cannot receive both — if you qualify for SMP, that takes priority. If you're turned down for SMP by your employer, they must provide you with an SMP1 form explaining why, which you then use to apply for MA. It's important to check your eligibility carefully, as some women assume they only qualify for MA when they're actually entitled to the more generous SMP.
  • •SMP eligibility: You must have worked for the same employer continuously for at least 26 weeks by the 15th week before your due date (the 'qualifying week'), and earn at least £123 per week on average
  • •MA eligibility: You must have been employed or self-employed for at least 26 weeks in the 66 weeks before your due date (the weeks don't need to be consecutive or with the same employer), and earned at least £30 per week in any 13 of those weeks
  • •If you're self-employed and pay Class 2 National Insurance, you'll typically qualify for MA
  • •If you recently changed jobs and haven't been with your new employer for 26 weeks, you may qualify for MA instead of SMP
  • •Agency workers may qualify for SMP if they meet the continuous employment test with their agency
  • •If your employer goes bust, HMRC will pay your SMP directly

How to Claim SMP and Maternity Allowance

The claiming process differs for each benefit. For SMP, the process is relatively straightforward and runs through your employer. For MA, you need to apply directly to the DWP. In both cases, timing is important — you should start the process well before your planned maternity leave start date to ensure payments begin without delay. Late claims can result in losing weeks of entitlement.
  • •SMP: Give your employer at least 28 days' notice of when you want SMP to start, along with your MATB1 certificate (issued by your midwife or doctor from 20 weeks of pregnancy)
  • •SMP: Your employer must confirm your SMP entitlement within 28 days of your request
  • •MA: Complete form MA1 (available on GOV.UK) and send it with your MATB1 certificate to your local Jobcentre Plus
  • •MA: Apply from 26 weeks of pregnancy — the DWP recommends claiming by the 15th week before your due date
  • •MA: If you were refused SMP, include the SMP1 form from your employer with your MA application
  • •Both: The earliest maternity leave and pay can start is 11 weeks before the due date

Budgeting for Maternity Leave

Whether you receive SMP or MA, your income during maternity leave will be significantly lower than your normal salary for most of the period. Even the enhanced first six weeks of SMP (90% of earnings) only partially soften the blow. The real financial challenge begins at week 7 when pay drops to the flat statutory rate. For someone earning £30,000, the drop from roughly £460 per week take-home to £187.18 is a reduction of nearly 60%. Planning ahead for this income cliff is one of the most important financial steps you can take during pregnancy.
  • •Calculate your exact expected income month by month for the full maternity period
  • •Open a dedicated maternity savings pot using the SYM app to cover the shortfall
  • •Review your household budget and identify areas where you can temporarily cut back
  • •Check your entitlement to Child Benefit (£26.05 per week for first child in 2026-27), which is not means-tested for those earning under £60,000
  • •If household income drops significantly, check eligibility for Universal Credit, Council Tax Reduction, and Healthy Start vouchers
  • •Consider whether your partner can adjust their working pattern or take Shared Parental Leave to help manage finances and childcare

FAQ

Common questions about Maternity Allowance and Statutory Maternity Pay in the UK.
Can I get both SMP and Maternity Allowance?+

No, you cannot receive both. If you qualify for SMP from your employer, that takes priority. Maternity Allowance is specifically for women who don't qualify for SMP.

I'm self-employed — which benefit do I get?+

Self-employed women typically qualify for Maternity Allowance, provided they've been self-employed for at least 26 of the 66 weeks before the due date and earned at least £30 per week in 13 of those weeks. You need to pay Class 2 National Insurance to be eligible.

Does Maternity Allowance affect other benefits?+

Maternity Allowance counts as income when calculating Universal Credit, so your UC payment may be reduced. However, you should still claim UC as the taper rate means you'll usually be better off overall. MA doesn't affect Child Benefit.

What if I work for two employers?+

You may be entitled to SMP from each employer if you meet the eligibility criteria with each one. The 26-week continuous employment test and the earnings threshold apply separately for each employment. This can result in receiving more than one SMP payment.

Can I start a new job during maternity leave?+

You can start working for a new employer during your maternity leave without affecting your SMP or MA from your original employer. However, if you decide not to return to your original employer, they cannot reclaim any SMP already paid to you.

#maternity-allowance#statutory-maternity-pay#smp#maternity-benefits#pregnancy-finance#family-finance

Start Your Savings Journey Today

20+ savings challenges, daily tracking, and achievement badges -- all free.

Download on the App Store