Maternity Allowance
The question
To ask the Secretary of State for Work and Pensions, whether she plans to review the treatment of Maternity Allowance as unearned income when calculating means-tested benefits.
Answered by Andrew Western
We want new mothers to be able to take time away from work in the later stages of their pregnancy and in the months following childbirth, in the interests of their own and their baby’s health and wellbeing.
Maternity Allowance is a benefit paid by the State, for those who cannot get Statutory Maternity Pay, and is classed as unearned income for Universal Credit purposes. As such, in determining the entitlement to Universal Credit, Maternity Allowance is deducted pound for pound from the total value of the award.
Where an individual claims Universal Credit, their award is adjusted to take account of other financial support that the customer is already receiving – including earnings, other income and benefits. This principle applies to other benefits: for example, the same approach is applied to new style Jobseeker’s Allowance and new style Employment and Support Allowance.
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