PARLIAMENTARY WRITTEN QUESTION
Universal Credit: Maternity Allowance (24 March 2021)

The Government has no plans to review the rate of Maternity Allowance. Maternity Allowance is intended to enable eligible pregnant women and new mothers, who cannot get Statutory Maternity Pay, such as the low paid and the self-employed to prepare for, and recover from birth and to bond with their child. We believe that the rate of Maternity Allowance available allows most mothers to do this.

There are no plans to change the way that Maternity Allowance is treated in Universal Credit. Universal Credit is a means tested system of support, and where an individual claims Universal Credit, their award is adjusted to take account of any other financial support that the claimant is already receiving – including earnings, other income and benefits. Maternity Allowance is a benefit paid by the State which is unearned income. Unearned income that is available to help meet daily living costs is taken fully into account in determining the amount of Universal Credit that an individual is entitled to. As such, in determining the entitlement to Universal Credit, Maternity Allowance is deducted pound for pound from the total value of the award. This principle applies to other benefits.