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.

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.