Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what estimate her Department has made of the annual cost of ending the differential treatment of maternity allowance and statutory maternity pay in the calculation of universal credit awards.

No such estimate has been made as Statutory Maternity Pay is paid by an employer and is considered to be earned income, which can be taxed, and is therefore a form of earnings subject to Universal Credit’s Work Allowance (where a claimant is eligible) and tapering, in the same way as other earned income.

Maternity Allowance is paid by the Department to people who are not eligible for Statutory Maternity Pay but who do meet the eligibility criteria for the allowance. The rate varies according to the criteria fulfilled which principally covers employed people who have worked less than the time before they become eligible for Statutory Maternity Pay, self-employed people and people out of work.

It is a longstanding principle of the welfare system that benefits are not paid to claimants with income available from other sources to support themselves. Unearned income, which is provided to meet everyday living costs, is taken into account in the calculation of Universal Credit and benefit entitlement may be adjusted accordingly.