Maternity Allowance and Maternity Pay: Universal Credit

(asked on 4th May 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, for what reasons statutory maternity pay and maternity allowance are treated differently under the regulatory framework for universal credit.


Answered by
Mims Davies Portrait
Mims Davies
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 20th May 2020

Statutory Maternity Pay is paid by an employer and is considered to be earned income, which can be taxed. Maternity Allowance is a tax-free allowance and is not considered to be earned income.

Maternity Allowance is paid by the state to people who are not eligible for statutory maternity pay but who do meet the eligibility criteria for the allowance. The rate varies according to the criteria fulfilled which principally covers employed people who have worked less than the time before they become eligible for Statutory Maternity Pay, self-employed people and people out of work.

It is a longstanding principle of the welfare system that benefits are not paid to claimants with income available from other sources to support themselves. Unearned income, which is provided to meet everyday living costs, is taken into account in the calculation of UC and their benefit entitlement may be adjusted accordingly.

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