Oral Answers to Questions

Fred Thomas Excerpts

Monday 23rd June 2025 Commons Chamber

[Alison McGovern]

This Government will always have the backs of working people, and I believe there will be a statement shortly on our modern industrial strategy. I know that Ministers from the Department for Business and Trade will be extremely engaged in the point that the right hon. Gentleman has just raised.

[Fred Thomas (Plymouth Moor View) (Lab)]

Many new mothers in Plymouth are claiming maternity allowance, not because they are unemployed, but because they do not qualify for statutory maternity pay; they may be self-employed, have recently changed jobs or have had a pregnancy-related sickness. Many of them have contacted me with concerns that maternity allowance is treated as unearned income and is therefore subject to universal credit deductions, unlike statutory maternity pay. What steps is the Department taking to ensure financial security for women in Plymouth who are claiming maternity allowance?

[The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)]

I understand the point that my hon. Friend makes. The treatment of maternity allowance in universal credit was subject to a judicial review, which upheld the policy of treating it as unearned income when calculating universal credit and of treating SMP paid by employers as earnings, in common with other statutory payments made by employers. My hon. Friend may be interested to know that, depending on individual circumstances, additional financial support—for example, child benefit and the Sure Start maternity grant—may be available to parents.