Maternity and paternity pay rising below the cost of living means new parents lose out

Released on: 12 December 2013

Yesterday the Prime Minister confirmed that maternity and paternity pay will be included in the benefits cap. This leaves the annual increases to maternity and paternity pay limited to 1%, rather than inflation, which along with the 3 year freeze in child benefit, the scrapping of the Health in Pregnancy Grant and limiting the Sure Start Maternity Grant to the first child only means that new parents are being hard hit.

Belinda Phipps, chief executive of NCT said:

“Following the good news about shared paternity leave, it’s hugely disappointing that maternity and paternity pay will be cut in real terms over the next three years. This will make it harder for parents to buy the essentials that their new baby needs, may put strain on a couple’s relationship and force parents back to work earlier than they planned.”