Having a baby

Maternity pay
If you're in work and expecting a baby, you have the right to take up to 52 weeks' maternity leave. However, your employer doesn't have to keep giving you the same rate of pay what you get will depend on your job contract. Most female employees are entitled to Statutory Maternity Pay for up to 39 weeks. If you are self-employed, or have recently been in employment, you may be able to get Maternity Allowance instead.

• How much is Statutory Maternity Pay? You're entitled to receive 90% of your salary for the first six weeks of maternity leave, followed by a maximum of £124.88 (tax year 2010/11) a week for another 33 weeks. Your employer might offer an enhanced maternity pay scheme, so talk to them as early as possible to find out what you'll get.
• Holiday pay: Your holiday pay continues during maternity leave, so talk to your employer about the rate of holiday pay you're entitled to and how this will be paid. You may be able to tag your paid holiday leave onto the start or end of your maternity leave or agree to have it paid in a lump sum.
• Keeping in touch (KIT) days: You're allowed to work for up to 10 days during your maternity leave without it affecting your maternity pay. You’ll be paid at least the National Minimum Wage for these keeping-in-touch days. Your employer doesn’t have to offer you any KIT days and you don’t have to take up any offer.

Other income and benefits

• Child Benefit: Anyone bringing up a child or young person is entitled to claim this monthly, tax-free payment. The best time to put in a claim is just after your baby is born, though your claim can be backdated by up to three months.
• Child Trust Fund: Shop around before you decide where to open your account – the Child Trust Fund website has a helpful account chooser to help you decide.

If your baby is born in 2010, shortly after you start getting Child Benefit you'll receive a Child Trust Fund voucher. Use the voucher (or the details on it) to open an account into which the government will pay £50 (or £100 if you are on a low income).

The government is stopping Child Trust Funds, so no new vouchers will be issued for children born on or after 1 January 2011. Existing vouchers will be honoured and existing accounts will continue to run until the child is 18.

A Child Trust Fund is a savings or investment account for every child born on or after 1 September 2002 and before 1 January 2011, started off with money from the government. Parents, family and friends can contribute up to £1,200 a year to the account, with no tax to pay on any income or gains in the account. Your child cannot access the money until they are 18. Once they turn 18 they can use the money however they like – for example towards the cost of university, to buy a laptop, driving lessons or training. If they want to carry on saving, they will be able to roll the money over into an individual savings account (ISA).

• New Deal: You could qualify for this programme if:
  • you're bringing up children as a lone parent;
  • your youngest child is under 16 years old; and
  • you're not working, or you're working less than 16 hours a week.

  Designed to help single parents get into work, New Deal helps towards childcare costs while you're looking for work or in training. You'll also get help from a personal adviser, who can advise you about work benefits and tax credits when you're back at work.

• Tax credits: You may be eligible for extra financial help from Child Tax Credit and Working Tax Credit. The amount you receive for both depends on your annual income. You need to be working more than 16 hours a week to qualify.
• The Social Fund: For parents on a very low income, extra financial help may be available. The Social Fund can give you a one-off payment of up to £500 if you're responsible for a new-born baby and finding it hard to manage. It can also provide loans for specific items such as cookers.

For further help about making any claim, check out HM Revenue and Customs Helplines Directory.

The cost of your new baby
When it comes to paying for your child's wellbeing, some costs are essential and budgeting is critical. Top-of-the-range baby gear for your new arrival may look tempting, but be realistic and spend within your means. With support from friends and family, you'll be able to borrow many crucial items.

Here is a list of baby essentials:

• A basket, crib or cot and bedding
• A pram, pushchair or baby sling
• Baby clothes
• Nappies, mats, wipes and cream
• A car seat (if you drive)*

* It is not advisable to buy a second-hand car seat as, if it has been involved in a car accident, it may well be unsafe for your baby.

Childcare options
If you're planning to return to work, think about the terms you'd like to return on, and whether you can afford to live on a smaller salary. You have the right to ask your employer for flexible working arrangements and legally they must consider this request.

Once you've agreed the terms of your employment you can start researching your childcare options. Nanny, nursery or childminding costs can be expensive, so approach some different places until you find an option that suits your budget and your baby. Budget for the cost in your monthly outgoings and speak to your employer about childcare vouchers, which allow you to pay for your childcare from your pre-tax income.

For more detailed information about finances, get a copy of our Parent's guide to money from your midwife (usually handed out between 16 and 20 weeks) or see the website.