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Forum Home  →  Discussion  →  Universal credit administration  →  Thread

Work Allowance and SMP/MA

JSmith
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Legal Advice Services, Working Families

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I feel quite silly for not knowing the answer to this, but can a single parent on maternity leave who is iro either SMP or MA get a work allowance? I know SMP is classed as earned income with a 63% taper rate and MA is classed as unearned income and deducted (unfairly) £1 for £1 - but I haven’t really thought about whether a work allowance still applies (assuming they are still employed).

It also makes me wonder whether you also get a work allowance for periods on SSP and other statutory payments.

Sorry if the answer to this is really obvious.

Ianb
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JSmith - 23 November 2020 04:04 PM

I feel quite silly for not knowing the answer to this, but can a single parent on maternity leave who is iro either SMP or MA get a work allowance? I know SMP is classed as earned income with a 63% taper rate and MA is classed as unearned income and deducted (unfairly) £1 for £1 - but I haven’t really thought about whether a work allowance still applies (assuming they are still employed).

It also makes me wonder whether you also get a work allowance for periods on SSP and other statutory payments.

Sorry if the answer to this is really obvious.

SMP would benefit from the WA because it is treated as earned income. The WA will exist because they are a parent.
MA does not benefit from WA because it is treated as unearned income.
I think there was a legal case brought to argue that this was discriminatory but unfortunately, if I have remembered it right, the case was lost.

WA does apply for SSP where claimant is eligible for WA, again because SSP is treated as earned income..

Daphne
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JSmith
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Thank you for you very swift reply. The MA ruling is so unfair.

Ianb
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Thanks for posting that, Daphne. That’s probably where I read about it in the first place!