Mothers-to-be urged to save

5 August 2008

Expectant parents have been urged to put aside money for after the birth to avoid getting into debt.

According to the Independent on Sunday, maternity rights in the UK are among the worst in Europe and new parents should ensure they have funds to cover the shortfall of maternity pay.

Currently, statutory maternity pay stands at 90 per cent of the average weekly wage for the first six weeks of leave, followed by 33 weeks at a maximum of £117.18. A further 13 weeks may be taken unpaid.

This is far less generous than in countries such as Norway and Sweden, the newspaper said.

Speaking to the paper, Natasha Freedman, consultant with Punter Southall Financial Management, said the drop in income when maternity leave starts can be "crippling".

"It is a very real problem for households that require two incomes to stay afloat, especially in today`s economic climate," she said.

Ms Freedman went on to advise parents on the financial help available to them, for example the £250 child trust voucher than can be invested, perhaps in an Isa.

Parents may also be entitled to childcare vouchers and child tax credits.

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Gregory Pennington are founder members of DEMSA (Debt Managers Standards Association).

DEMSA are the first trade body within the finance industry to successfully secure approval for its code of practice under the OFT Consumer Codes Approval Scheme (CCAS).