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COST SAVER PODCAST • Ep. 156

UK Maternity and Paternity Pay 2026/27: SMP Rates, Eligibility and Employer Clawbacks Explained

Hosted byAsad & Angela(AI-generated voices)
28 September 202615 min listenSeason 1 • Ep. 156

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UK Maternity and Paternity Pay 2026/27: SMP Rates, Eligibility and Employer Clawbacks Explained

Now Playing · Ep. 156

UK Maternity and Paternity Pay 2026/27: SMP Rates, Eligibility and Employer Clawbacks Explained

The Cost Saver Podcast

00:000%00:00

AI-generated voices. For information only - not financial guidance.

Key moments

1In this episode of The Cost Saver Podcast,
0:20
2Learn why maternity pay drops at week 7, who
4:08
3Tap into the chapters, related tools, and
7:56

Key Takeaways from This Episode

  1. 1In this episode of The Cost Saver Podcast, Angela and Asad unpack uk maternity and paternity pay 2026/27 using UK data and real numbers — so you can decide what to actually do, not just what to think about.
  2. 2SMP rate 2026/27 is £194.
  3. 3Learn why maternity pay drops at week 7, who qualifies, paternity pay rules & employer clawbacks.

Episode Transcript

Asad & Angela — AI-generated hosts · click to collapse

v
A
[Angela]:
Welcome to Cost Saver Conversations. I'm Angela, and I ask the practical questions so you can quickly understand what matters. Today, I'm joined by Asad.
A
[Asad]:
Hi Angela. We are unpacking "UK Maternity and Paternity Pay 2026/27: SMP Rates, Eligibility and Employer Clawbacks Explained" today and tying it back to the wider Cost Saver ecosystem, including tools like Enhanced Maternity Pay Calculator UK | SMP & OMP, so you can turn insights into action quickly.
A
[Angela]:
Just a heads-up before we dive in: we are your synthetic hosts. We are great with numbers, but as AI, we can sometimes be confidently wrong. Think of us as the digital versions of your most knowledgeable, slightly caffeinated friends.
A
[Asad]:
Exactly. Treat this chat as a smart estimate only, not as professional financial guidance. Always check important details with official sources or a qualified expert before making any big decisions.
A
[Angela]:
Welcome back to the Cost Saver podcast! Today we are getting into something that affects, honestly, so many families — UK maternity and paternity pay for 2026/27. And I've got Asad here to walk us through all of it. Hi Asad!
A
[Asad]:
Hey Angela, thanks for having me. Yeah, this is one of those topics that, um, people kind of assume they understand until they're actually in the middle of it, and then it's like — oh. Oh no. [laughs]
A
[Angela]:
[laughs] Yeah, exactly. It sounds simple on the surface, right? You have a baby, you get maternity pay. Done.
A
[Asad]:
But there's a lot more to it. So, I mean, the — well, let me start with the big picture. Statutory Maternity Pay, SMP, covers up to 39 weeks of leave. And it's paid in two stages, which is where people get caught out.
A
[Angela]:
Okay. Two stages.
A
[Asad]:
Right. So the first six weeks, you get 90% of your average weekly earnings. No cap on that, by the way — if you're a higher earner, you get proportionately more during those first six weeks.
A
[Angela]:
Okay, that sounds... pretty decent, actually.
A
[Asad]:
It does! And then — and this is the bit that really catches people off guard — from week seven onwards, it drops. Quite sharply. For 2026/27, the flat rate is £194.32 a week. That's from April 2026.
A
[Angela]:
Wait, so it's not 90% the whole way through? It just—
A
[Asad]:
—no, no. That's the thing. From week seven to week 39, it's the lower of 90% of your average weekly earnings or that flat rate. And for, you know, anyone earning a reasonable salary, that means you're hitting the flat rate. Every time.
A
[Angela]:
Oh. I mean, I knew there was a drop but I didn't realise how... stark it is.
A
[Asad]:
Yeah. So let me — let me put some numbers on it, because I think that helps. Say someone's average weekly earnings are £600. First six weeks, 90% of that, so £540 a week.
A
[Angela]:
Right, okay.
A
[Asad]:
Then week seven hits. And suddenly it's £194.32. That's a drop of £345.68 a week — around £1,500 a month less.
A
[Angela]:
[exhales] £1,500 a month. That's... that's a lot.
A
[Asad]:
It is. And even if you're on a more modest wage — like, say your average weekly earnings are £250 — 90% of that is £225, which is still above the flat rate. So you still drop to £194.32 from week seven.
A
[Angela]:
So basically, unless you're earning really quite low—
A
[Asad]:
—yeah, unless your earnings are below about £216 a week, you're going to feel that week-seven cliff. It's just... it's one of those things you need to plan for, you know?
A
[Angela]:
Hmm. Okay, so you keep mentioning 'average weekly earnings.' How is that actually worked out? Because I'd assume it's just, like, your salary divided by 52, but I'm guessing it's not that simple.
A
[Asad]:
[chuckles] No. No, it's not. And this is — this is actually where mistakes happen. So your AWE is based on your actual paydays falling within what's called the 'relevant period.' That's normally the eight weeks up to and including your last normal payday on or before the end of the qualifying week.
A
[Angela]:
The qualifying week being...?
A
[Asad]:
The 15th week before your expected week of childbirth. So it's very specific. And here's the thing — if you're paid monthly, you might only have two payslips falling inside that window. So a recent pay rise, a bonus, a month of heavy overtime... that can shift your AWE quite a bit in either direction.
A
[Angela]:
Oh, that's actually — I hadn't thought about it like that. So the timing of when you get paid matters a lot.
A
[Asad]:
It really does. And if your baby arrives early, HMRC has specific rules for recalculating the qualifying week and the relevant period. So, um, my strong advice — and I can't stress this enough — ask your payroll or HR team for your AWE calculation and the specific payslips it's based on, in writing, before your leave starts.
A
[Angela]:
In writing. Yeah.
A
[Asad]:
Yeah. Because reference-period errors are a recognised source of underpaid SMP, and honestly, fixing them early? It's like a 10-minute check. Does that make sense?
A
[Angela]:
It does, totally. Okay, so who actually qualifies for SMP? What are the tests?
A
[Asad]:
Right, so there are four separate tests and you need to meet all of them. It's not just about how many weeks pregnant you are. First one: continuous employment. You need at least 26 weeks with the same employer, ending with the qualifying week, and you need to still be employed into that qualifying week.
A
[Angela]:
Okay.
A
[Asad]:
Second: earnings threshold. Your AWE in the relevant period needs to be at least the Lower Earnings Limit — that's around £125 a week in 2025/26, but it gets reviewed annually, so always check the current figure on GOV.UK.
A
[Angela]:
Got it. So 26 weeks of service and earning over about £125 a week. What's the third one?
A
[Asad]:
Notice and evidence. You need to tell your employer when you want your leave to start — at least 28 days in advance where possible — and provide proof of pregnancy. Usually that's a MATB1 certificate, issued no earlier than 20 weeks before the due date.
A
[Angela]:
And the fourth?
A
[Asad]:
Timing. You must still be employed and pregnant when the qualifying week is assessed, or have already given birth. If the baby comes before the qualifying week, there are special rules that use the actual date of birth instead.
A
[Angela]:
Right. And if someone doesn't meet these — like, they've just changed jobs or they're self-employed — is there anything else?
A
[Asad]:
Yeah, so you might still be able to claim Maternity Allowance through the DWP. It's worth checking even if you assume you won't qualify, because the rules are different. Different eligibility criteria entirely.
A
[Angela]:
Good to know. Okay, let's talk about the other parent. Statutory Paternity Pay — what's the deal there?
A
[Asad]:
So this is — well, the first thing to understand is that paternity leave itself is a day-one right. From 2026, eligible employees can take one or two weeks off from their very first day in a job.
A
[Angela]:
Wait, really? Day one?
A
[Asad]:
Day one, yeah. But — and here's where people get tripped up — Statutory Paternity Pay, SPP, that's a separate thing. Having the right to take leave doesn't automatically mean you'll be paid for it.
A
[Angela]:
Oh. That's actually a really important distinction.
A
[Asad]:
It is. So for SPP, you need 26 weeks' continuous service with the same employer by the 15th week before the due date. You need to meet the earnings threshold. And you need to be the child's biological father, the mother's spouse or partner, or the intended parent in a surrogacy arrangement.
A
[Angela]:
And the rate?
A
[Asad]:
Same flat rate — the lower of 90% of your average weekly earnings or £194.32 a week for 2026/27. Same number.
A
[Angela]:
Okay. And then there's Shared Parental Pay. I feel like people sort of know this exists but don't really understand how it works?
A
[Asad]:
[laughs] Yeah, that's — that's a fair summary, honestly. So Shared Parental Leave and Pay lets eligible parents split most of the maternity or adoption leave and pay between them. The birth mother has to take the first two weeks — that's compulsory maternity leave. But after that, the remaining weeks can be shared flexibly. Together, separately, in blocks...
A
[Angela]:
And it's paid at the same rate?
A
[Asad]:
Same flat rate, yeah. £194.32 a week for 2026/27. But — and this is the bit people miss — it doesn't create extra paid weeks. It redistributes the existing entitlement. So you're splitting the same pot, basically.
A
[Angela]:
Hmm, I hadn't thought about it like that. So it's not bonus leave, it's just... flexible leave.

Episode Notes & Resources

v

Information only. This content is not financial or legal guidance.

Credits: The Cost Saver Podcast team, with AI-assisted production and editorial review.

Full Written Guide: UK Maternity and Paternity Pay 2026/27: SMP Rates, Eligibility and Employer Clawbacks Explained

This podcast episode is based on the companion article for deeper context and references.

Read the full written guide: UK Maternity and Paternity Pay 2026/27: SMP Rates, Eligibility and Employer Clawbacks Explained

Tools Mentioned in This Episode

Parent holding newborn baby
Work & Income3-5 minutes
NEW

UK Maternity & Paternity Pay Calculator (2026)

Week-by-week SMP, SPP, ShPP and adoption pay with employer-enhanced stacking.

Try it free

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FAQ

Q: What is this episode about?

A: This episode covers: Maternity Pay, Paternity Pay. It explains the most practical ideas first, highlights common mistakes, and gives clear next steps you can apply to your own situation without needing specialist knowledge.

Q: How long is this episode?

A: This episode is approximately 15:12. You can use key moments to jump directly to sections, revisit the parts that matter most to you, and turn the guidance into a short action list after listening.

Q: Can I read this instead?

A: Yes. Check the "Related blog article" section for the full written version with links and references. The written format is useful if you prefer scanning, comparing options line by line, or sharing specific points with family members.

Q: Can I listen on other platforms?

A: Yes. Use Spotify, Apple Podcasts, Amazon Music, and YouTube links on this page when available. Platform availability can vary by processing time, so if one link is delayed, the web player and companion blog still provide full access.

Q: What other topics are covered?

A: SMP, UK Benefits, Parental Leave. These are connected to the main discussion so you can understand trade-offs, avoid one-sided decisions, and choose actions that are realistic for your budget and timeline.

Q: Which tools should I use after listening?

A: Start with: UK Maternity & Paternity Pay Calculator (2026). You can find them in the Related tools section below. A good approach is to run one baseline scenario first, then test two or three alternatives so your final decision is based on numbers, not guesswork.

Q: Are there related blogs I can read next?

A: Yes. This episode links to 8 related blog articles for deeper context. Reading one follow-up article is often enough to clarify assumptions and help you build a practical weekly or monthly plan.

Topics covered

Maternity PayPaternity PaySMPUK BenefitsParental Leave

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