Having a baby brings so much joy and big changes to your life! While the UK gives great support to new parents, smart planning helps make money matters easier.
If you need extra help with money, some loans can work for you. Many lenders now offer different types of loans for all sorts of credit scores. You can get normal loans with good low rates when you have the best credit. You might meet some problems when you have bad credit. However, there are lenders who can give loans with lower credit scores. You can always contact them when you need urgent loans for bad credit. These might cost a bit more, but they’re there when you need quick help. Just check if you can pay it back monthly. Many lenders now look at your entire funds story, not merely your credit score.
The UK gives great support to new parents while they’re off work. But a little planning now makes everything smoother later.
| Overview of Statutory Leave and Pay Entitlements in the UK | |||
| Type of Leave | Duration | Pay Rate | Eligibility |
| Maternity Leave | Up to 52 weeks | First 6 weeks: 90% of average weekly earnings | Worked for employer continuously for 26 weeks+ |
| Paternity Leave | 1–2 weeks | Statutory rate (£172.48/week or 90% earnings) | Worked 26 weeks before the 15th week pre-birth |
| Shared Parental Leave | Up to 50 weeks shared | Statutory rate for up to 37 weeks | Both parents must meet work and earnings criteria |
| Maternity Allowance | 39 weeks | Flat rate (£172.48/week) | Self-employed or not eligible for SMP |
Understand Your Leave Entitlements
Maternity Leave
Planning for a baby brings lots of happiness and questions about money. Many new parents want to know what they can get during their time off work. The good news is that the UK gives great support to working parents.
In the UK, all working mums get 52 weeks of maternity leave. This time splits into two parts, you get the first 26 weeks. You can start your leave up to 11 weeks before your delivery. You will also get at least two weeks off after giving birth. This is also necessary for all the mothers.
You will get paid for 39 weeks of your leave time. The first six weeks give you most of your normal pay. After that, you get a fixed amount each week that the government sets. You keep building up your holiday time while you’re away.
Here are some helpful tips:
- Start saving a bit of money each month before your baby comes
- Talk to your work about any extra support they might give
- Keep all your paperwork safe when you apply for your pay
- Check if you can use holiday time to get more paid leave
Paternity Leave
The UK helps dads spend those special first days with their babies. Most working dads can take two weeks off when their baby comes. You required to have functioned at your job for at most undersised 26 weeks to get this time. You take these two weeks all at once, which helps you settle into life with your new baby.
During your time off, you’ll get paternity pay. The amount is either 90% of what you normally earn or a set amount from the government. You pick whichever is less. Plus, you still build up your holiday time while you’re away.
Helpful things to know:
- Tell your boss at least 15 weeks before your delivery date
- Your leave must start after the baby arrives
- You can add holiday days to get more time off
- Check if your work offers extra pay or time off
Shared Parental Leave
The UK gives parents a great way to split time off with their new baby. This Shared Parental Leave helps both parents spend time with their babies. This plan lets mums and dads share up to 50 weeks of leave after their baby comes.
After the delivery, new parents can share 37 weeks of settled leave between them. This means both parents can take turns staying home with the baby. Mums must take two weeks off right after the baby comes.
This sharing plan gives families more choices about who stays home and when. Some parents like to take time off together with their new baby. Others take turns so one parent is always home. You can even use this leave a bit at a time, which helps with planning.
Assess Monthly Expenses During Leave
The main costs stay the same – like your home rent and bills. But new baby costs will join the list, too. Your regular bills won’t stop when the baby comes. You can keep track of your rent, power bills, and loan costs. Don’t forget about your phone bill and car costs too. These costs stay the same each month so this makes them easy to plan for.
Your new baby will need lots of things. Plan for diapers, tiny clothes, and feeding items. Baby wipes and medicine cabinet items add up, too. It helps to buy some things before the baby arrives.
If you need extra help with money, there are loans with low credit scores for new parents. Many lenders now look at your income as well, not just your credit score. These loans often have higher rates but can help in tight spots. Remember to check if you can pay it back before you borrow.
Build a Savings Cushion in Advance
Starting to save early makes life much easier when your baby comes. You can try to save enough to cover three to six months of your basic costs. This helps you feel safe when your pay changes during leave time. You can put a bit away from each pay into a special baby fund.
Lenders offer great ways to grow your savings faster. You can look for accounts that has many benefits at the end. ISAs are great because you don’t pay tax on what you earn.
Make saving easier by setting up money to move on its own each month. This way, you don’t have to think about it. You can pick a day right after you get paid to move some money to savings.
Helpful money tips:
- Start with saving just 5% of your pay if money is tight
- Look for bank accounts made just for new parents
- Check if your work has any savings help programs
- Put any extra money, like birthday gifts, into your baby fund
Conclusion
Getting ready for your baby means thinking ahead about money and time off work. The UK gives you lots of help, but planning early makes everything easier. When you know what help you can get and save a bit before the baby comes, you can enjoy those special first days without money worries. This special time is all about you and your new little one. Good planning now will ensure more smiles later.
Lisa Ann has developed a well-experienced professional career. From managing the staff of more than 50+ loan experts at Fastmoneyfinance to boosting the delivery of various loan offers, she has acquired many challenging roles to come out with the best results for the company. Lisa Ann is a Senior Content Author and the Chief Financial Advisor at Fastmoneyfinance. To back her massive experience in the UK’s financial industry, she has the postgraduate degree and diploma in Business and Finance.