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Maternity Leave Putting A Financial Strain On Families – Leaving Them £537 Short Each Month

Forget notions of spoiling your baby rotten with the latest parenting gadgets and all-singing all-dancing prams and car seats – maternity leave is likely to leave you feeling a little strapped for cash, research shows

Despite starting a family later in life, stats show that household incomes still drop when women take maternity leave.
 
In fact, families take a massive 30 per cent cut in income, leaving them around £537 short of making ends meet.

Mandatory Credit: Photo by Rafael Ben-Ari/Chameleons Eye/REX (3870291a) Pregnant woman with small money and empty wallet during pregnancy Having a baby - May 2014
Mandatory Credit: Photo by Rafael Ben-Ari/Chameleons Eye/REX (3870291a) Pregnant woman with small money and empty wallet during pregnancy Having a baby - May 2014


 
Statutory pay is just £138.18 a week, causing household income to fall from £3,121 to £2,181 a month during maternity leave.
 
The study, conducted by price comparison and switching service uSwitch.com as new shared parental leave laws come into play, also found that three in five families take on debt and one in two mums have to go back to work because they can’t afford to stay at home.
 
Another 11 per cent return purely to pay off their debts – which can pile up to come to a shocking £2,012 during maternity leave.
 
When asked about when they decided to have kids, 28 per cent of the polled parents admitted to starting a family later than planned.
 
Families are waiting around three years later than they originally planned to have kids, with 18 per cent revealing this was because they couldn’t afford to have a baby sooner.

Mandatory Credit: Photo by I Love Images/REX (1936075a) MODEL RELEASED, A couple and their baby son looking at their household finances online VARIOUS
Mandatory Credit: Photo by I Love Images/REX (1936075a) MODEL RELEASED, A couple and their baby son looking at their household finances online VARIOUS


 
“The drop in income while on maternity leave can be crippling for families, particularly as one third of working mothers are the main breadwinner,” says Ann Robinson, Director of Consumer Policy at uSwitch.com.
 
“The Shared Parental Leave legislation has the potential to alleviate some of the difficulties faced by parents, but it’s going to take a major awareness drive by the Government, not to mention a significant cultural shift in the workplace, for it to start having an impact.”
 
Banish Debts By Budgeting Well
 
If you’re about to start your maternity leave, don’t panic. There are plenty of ways that you can ease your financial strain – and still leave yourself with enough funds to buy everything you need (plus those amaze Zara pumps you are lusting after).
 
“There is still a lot of work to be done to ease the strain on new parents, but in the meantime, families can help themselves by taking a long hard look at their household budgets to see where they can cut costs,” says Ann.

“Short-term debt solutions may seem an efficient way to fund spending, but they can also lead to long-term debt if not managed properly. Switching providers and managing expenses is a more effective approach and can make a big difference to the bottom line at the end of the month.”


 
Top Tips For Saving Money During Maternity Leave

1.     Preparation is key if you’re planning a family. “Check your company’s maternity policy, calculate how much you will need to survive and save money in readiness,” says Ann.

2.     You can help yourself by taking a long hard look at your household budgets to see where you can cut costs. “When times are tough, it’s vital to make sure you are on the best possible deal for essential household bills to help ease the financial pain,” says Ann.

3.     Look out for ways to make a few extra pounds by changing your bank account or credit card. “Using a high interest current account or cashback credit card, and don’t let your debts run away with you,’ Ann advises. “It’s important to make the time to check you aren’t paying over the odds for products like credit cards or loans.”
 
Plus, don’t forget to take advantage of one-off sales (no more scoffing at Americanisms such as Black Friday) and use money-saving websites and offers such as Voucher Codes and Groupon.
 
But most importantly, keep your finances in check by being super regimental about your spending and perhaps banish thoughts of having the same pushchair as Holly Willoughby and opt for a style that’s a little less pricey…
 
Do you find it tough to pay for everything you need with your maternity pay? Let us know in the comments!
 
[New Mummy Blog: Balancing My Work And Family Life]
 
[Mum Diary: When Is The Right Time To Have A Baby?]