Your rights

Maternity and paternity rights are now more wide reaching and have been changed to make it easier for women to return to their job.

Maternity rights
Women are now entitled to 26 weeks off, regardless of how long they have worked for their employer and Statutory Maternity Pay (SMP) is paid for 26 weeks. For the first six weeks SMP is paid at 90% of average earnings, and for the remaining 20 weeks SMP is £106 a week, or 90% of average weekly earnings, if this is less.

The government has pledged that from 2007, paid maternity leave will be extended from six to nine months, worth an estimated extra £1,400.

In addition to the statutory leave, women can take up to a further 26 weeks of maternity leave, if they have completed 26 weeks of continuous employment with their employer by the beginning of the 14th week before their expected week of childbirth.

Additional maternity leave is usually unpaid, but some companies will contribute.

Paternity rights
Dads have the right to two weeks' paid paternity leave at present and will get £106 a week, or 90% of their average weekly earnings if this is less, for two weeks, known as Statutory Paternity Pay (SPP).

Paternity leave can be taken from the date of birth or up to eight weeks after the birth. To qualify for SPP you must have worked for your employer for 26 weeks by the 15th week before the baby is due and earn more than £79 a week.

This is a means-tested tax credit. If you’re eligible you will pay less tax. The credit for each child is £1,765. Plus there’s an extra payment of £545 paid to each family with at least one child (tax year 2006/07). You may be eligible if the joint income of you and your partner is less than £55,000.

To find out more information about child tax credit, please refer to the Directgov website.

If you are on a low income you may be entitled to Working Tax Credit which includes some help towards childcare.

Single parents
If you are on the New Deal for Lone Parents, you may be eligible for childcare help so you can look for work or re-train.

Childcare vouchers
If you are working, your employer may offer childcare support in the form of childcare vouchers. The Childcare Voucher Scheme involves giving up some of your pay in exchange for the childcare vouchers and there are tax advantages if you receive vouchers instead of pay.

However cutting your salary could take you below the earnings threshold where you are eligible for certain benefits. Your state pension, maternity allowance, Statutory Maternity Pay, Statutory Paternity Pay and tax credits could all be affected if your pay falls below the lower earnings limit.

The workSMART website can give you more details on childcare vouchers.