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Forum Home  →  Discussion  →  Other benefit issues  →  Thread

SE and employed mothers: better off claiming MA than reduced rate of SMP but can’t?

EKS_COTTON
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Tax and Welfare Rights Officer, Equity

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Total Posts: 288

Joined: 10 March 2014

Dear Comrades,

I need some clarity on an issue that keeps cropping up regarding SMP and MA for people who do both employment and self-employment work.

Occasionally I get a case where a pregnant woman qualifies for SMP on the basis of short term employment work but not at the full rate of £139.58 per week for the 33 weeks (following the first 6 weeks of 90% of average weekly earnings).

She may or may not have self-employment profit above the class 2 NIC threshold, nevertheless she can pay 13 weeks of class 2 to become entitled to £139.58 per week for 39 weeks.

It appears you have to claim SMP if you are entitled, yet cannot claim MA to ‘top up’ the weekly rate – is this correct?

MA is also completely disregarded for tax credit purposes, whereas SMP is treated as employment earnings (over the first £100 per week).

I have not carried out any detailed calculations but it would appear that if you don’t qualify for SMP at the full rate you may be better off claiming MA if you are also self-employed but you are prevented from doing so?  Is this correct?

I can’t the relevant regulation.  Would be grateful if anyone could point me in the right direction?

In solidarity,

EKS

EKS_COTTON
forum member

Tax and Welfare Rights Officer, Equity

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Total Posts: 288

Joined: 10 March 2014

Dear all,

A reply was helpfully provided by Kathleen Corrigan and I post it here to help others -

The statutory provision that prevents payment of MA where the claimant is entitled to SMP is set out in s.35 of the Social Security Contributions & Benefits Act 1992.

Maternity
35.—[3(1) A woman shall be entitled to a maternity allowance [2under this section]
at the appropriate weekly rate determined under section 35A below, if–
(a) she has become pregnant and has reached, or been confined before reaching,
the commencement of the 11th week before the expected week of
confinement; and
(b) she has been engaged in employment as an employed or self-employed earner
for any part of the week in the case of a least 26 of the 66 weeks immediately
preceding the expected week of confinement; and
[4(c) her average weekly earnings (within the meaning of section 35A below) are
not less than the maternity allowance threshold for the tax year in which the
beginning of the period of 66 weeks mentioned in paragraph (b) above falls;]
and
(d) she is not entitled to statutory maternity pay for the same week in respect of
the same pregnancy.]