Pregnancy Finances: Getting Organised Early

Getting your finances in order during pregnancy reduces stress and means you are not scrambling for information at the last minute. The earlier you start, the more time you have to plan, apply for what you are entitled to, and save where possible. Here is what to sort out, ideally in the first trimester.

Understand Your Maternity Pay Entitlement

Statutory Maternity Pay (SMP) If you are employed and have been with your employer for at least 26 weeks by the end of the 15th week before your due date, you are likely entitled to SMP. This is paid by your employer for up to 39 weeks. The first six weeks are paid at a higher rate (a percentage of your average weekly earnings), and the remaining 33 weeks are paid at a flat statutory rate set by the government each April. Check the current rate on the gov.uk website, as it changes annually.

Maternity Allowance If you do not qualify for SMP — for example, because you are self-employed, have recently changed jobs, or do not earn enough — you may be entitled to Maternity Allowance instead. This is paid by the government through Jobcentre Plus. You can apply from 26 weeks pregnant.

Enhanced maternity pay Many employers offer more than the statutory minimum. Check your employment contract or speak to HR to understand what your employer offers — the difference can be significant and is worth knowing early.

Important: tell your employer in writing that you are pregnant and when you plan to start maternity leave. You must do this by the end of the 15th week before your due date (roughly 25 weeks), but telling them earlier gives you more time to plan your handover and agree your leave dates.

Apply for Financial Support You Are Entitled To

Maternity Exemption Certificate (MatEx) Apply for this as soon as possible via your GP or midwife. It gives you free NHS prescriptions and free NHS dental treatment throughout your pregnancy and for 12 months after your baby's birth. The form is called FW8 and your GP or midwife fills in part of it.

Healthy Start vouchers If you are at least 10 weeks pregnant and receiving certain qualifying benefits (such as Universal Credit below a set income threshold, Income Support, or income-based JSA), you may qualify for Healthy Start vouchers. These are prepaid cards that can be spent on plain cow's milk, fresh and frozen fruit and vegetables, and infant formula. Apply via the Healthy Start website.

Sure Start Maternity Grant A one-off government payment to help with the costs of a new baby, available to people who are at least 29 weeks pregnant or have recently given birth, and who receive certain qualifying benefits. You can only claim for your first child (with some exceptions). Apply through the gov.uk website.

Universal Credit If your income drops significantly during maternity leave, you may become eligible for Universal Credit even if you were not previously claiming. It is worth checking your eligibility as your circumstances change.

Tax-Free Childcare Although this applies after the baby arrives rather than during pregnancy, it is worth researching early so you are ready to apply when the time comes.

Build a Baby Budget

Starting a simple budget now means you have a realistic picture before the baby arrives.

• List your current income and outgoings. Include rent or mortgage, bills, food, travel, and any subscriptions.
• Estimate your income during maternity leave. Factor in SMP or Maternity Allowance and any enhanced pay from your employer.
• List anticipated baby costs. Pram, car seat, cot or next-to-me crib, nappies, clothing, and feeding equipment are the main upfront costs. You do not need to buy everything at once — spreading purchases over the second and third trimester is easier on your budget.
• Identify areas to cut back. Subscriptions you rarely use, takeaways, or other discretionary spending can free up meaningful amounts over several months.
• Consider second-hand for big items. Prams, Moses baskets, and baby clothes can be bought second-hand for a fraction of the new price. Check that safety-critical items such as car seats have not been in an accident before buying.

Frequently Asked Questions

You may be entitled to several forms of support: Statutory Maternity Pay or Maternity Allowance (depending on your employment situation), free NHS prescriptions and dental care via the Maternity Exemption Certificate, Healthy Start vouchers if you receive qualifying benefits, the Sure Start Maternity Grant (a one-off payment for a first child if you receive certain benefits), and potentially Universal Credit if your income falls during leave. Citizens Advice has free advisers who can help you work out what you are entitled to — their website also has an eligibility checker.

When should I tell my employer I am pregnant?

You are legally required to tell your employer by the end of the 15th week before your due date (around 25 weeks pregnant). However, telling them earlier — even if you choose to keep the news private more broadly — is in your interest. It allows your employer to carry out a pregnancy risk assessment, which is a legal obligation, and gives you more time to plan your maternity leave and any handover arrangements. Once you have told your employer in writing, your maternity rights are protected.

How much does a baby cost in the first year?

The cost varies considerably depending on choices around feeding, childcare, and what you buy new versus second-hand. The biggest variables tend to be childcare costs (which can be very high, particularly before the funded hours kick in) and pram or travel system choices. Planning your budget early, researching what you genuinely need versus what is nice-to-have, and buying gradually rather than in one go all help to keep costs manageable.

Speak to your midwife or GP if you are struggling financially during pregnancy — they can connect you with local support services and social care if needed.

This article is for informational purposes only and does not constitute medical advice.

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