Maternity Pay: Small Businesses

(asked on 19th March 2024) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps he is taking to encourage small businesses to provide statutory maternity pay to employees; and whether he has discussions with industry on this.


Answered by
Paul Maynard Portrait
Paul Maynard
This question was answered on 26th March 2024

All employers have a statutory obligation to pay Statutory Maternity Pay to eligible employees. Employers are reimbursed at least 92 percent of the Statutory Maternity Pay they pay. Small employers (those who pay £45,000 or less gross NICs in the previous tax year) receive 100 percent of the Statutory Maternity Pay paid plus an additional 3 percent, known as the Small Employers’ Compensation Rate. This is in recognition of the relatively greater impact maternity absence has on small businesses.

Employers may apply for advance funding from HMRC if they are unable to meet their SMP liability at the required time.

DWP officials regularly meet with industry representatives to discuss Statutory Maternity Pay.

Reticulating Splines