What is the difference between Statutory Maternity Pay and Maternity Allowance?

Full answer

SMP and Maternity Allowance both provide maternity income for up to 39 weeks, but they suit different working situations. Statutory Maternity Pay comes from your employer through payroll. To qualify you must have been continuously employed with the same employer for a set period before your due date and earn at least the lower earnings threshold on average. SMP has two tiers: a higher rate for the first six weeks based on 90% of your average weekly earnings, then a standard flat statutory rate (or 90% of your earnings if that is lower) for the remaining weeks. Because SMP is paid as earnings, Income Tax and employee National Insurance (8% up to GBP 50,270, then 2%) are deducted through PAYE, and student loan repayments apply above your plan threshold. Maternity Allowance is paid by the Department for Work and Pensions and is the safety net for people who cannot get SMP -- most commonly the self-employed, those who recently changed employer, or those whose earnings or employment history fall short of the SMP rules. It is paid at a flat weekly statutory rate (or 90% of average weekly earnings if lower) for up to 39 weeks, and a shorter, lower-rate version exists for those who help with a self-employed spouse's business. Crucially, Maternity Allowance is not taxable and is free of National Insurance, though it can affect means-tested benefits. The specific 2026/27 weekly rates for SMP and MA are uprated each April and are not in this guide, so check gov.uk for the current figures. Worked approach: an employed mother earning GBP 32,000 would normally take SMP (six weeks at 90% of pay, then the flat rate); a self-employed mother with the same income would claim Maternity Allowance instead, tax-free. You cannot receive both for the same pregnancy. Use the take-home pay calculator with the current weekly rate to see your net maternity income.

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