Budgeting
Particularly if you are used to having two incomes, the arrival of a baby can be something of a financial shock. It’s a good idea to plan a budget, and the best time to do this is before the baby arrives. There are many online household budget calculators available that could help: your bank might offer one, or you could try the one at moneymadeclear.co.uk, the Financial Services Authority’s consumer website. You may find the curtailment of your social life actually helps you to save some money!
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Beware of spending large sums on items your baby will only use for a few weeks or months; you may find friends can lend you things like baby baths and Moses baskets, leaving you with more to spend on essentials such as nappies.
Also, don’t forget you can spread your purchases: you don’t need a high chair on day one, for instance.
Get what you’re entitled to...
For new mums who have been working prior to the birth (subject to some conditions), Statutory Maternity Pay is available for up to 39 weeks. This starts off at a quite generous level of 90% of your average weekly earnings for the first six weeks, then drops to £123.06 (if this is lower than 90% of your average weekly earnings) for the remainder of the time. You can find out more about SMP at www.direct.gov.uk.
Being pregnant comes with other financial benefits too; you qualify for free NHS prescriptions and dental treatment, and these entitlements continue for a year after the birth. You will need to ask your GP or health visitor for form FW8.
As soon as you can, you should apply for Child Benefit, which is payable regardless of your income, at a rate of £20 a week for your first child and £13.20 for each subsequent child.
You may also qualify for Child Tax Credit if your household income is below a certain level. Again, www.direct.gov.uk is a good central resource for finding out about benefits.
View other relevant articles here, giving more information on The Child Trust Fund, and How to Open a Child Trust Fund.
