Evidence Submission: Benefits for pregnant women

Maternal and child benefits are important because poverty has a direct impact on health.  Poorer women are more likely to have poorer health and psychological problems when pregnant.1  Babies from manual backgrounds have a 50% higher rate of infant death, lower birth weights and higher incidence of morbidity and mortality than those from non-manual backgrounds.2

A Survey in 2010 by LV= estimates a child costs £201,809 of which £9152 is spent on the child’s first year.3  The government states it is committed to supporting children and mothers in poverty, as the Child Poverty Act 2010 set targets relating to the eradication of child poverty by 2020.4

Specific benefits for pregnant women and young children

All pregnant women are entitled to free NHS prescriptions and dental treatment whilst pregnant and within 12 months of giving birth.5

Working pregnant women may be entitled to Statutory Maternity Pay of 90% of their average pay for 6 weeks then a reduced rate for 33 weeks, or Maternity Allowance of up to £128.73 a week for up to 39 weeks. 6,7

Child benefit of £20.30 per week plus £13.40 for each additional child is paid to anyone with a child regardless of earnings.8

Healthy Start, a voucher scheme for around 600 000 women and over 450 000 children in very low-income families encourages breastfeeding and healthy eating to reduce the costs of milk, fruit and vegetables.9

Furthermore, nine out of ten families with children qualify for tax credits, which depend on household income, number of children and childcare costs.10 A family earning £20 000 with no childcare costs may qualify for £2,195.  Childcare tax benefits of 70% of the childcare costs up to £175 a week are available.  This is income assessed, as the family earning £20 000 would qualify for £8,565.

Benefits that have been reduced

These childcare tax credits have reduced from 80% to 70% in April 2011 and earnings disregard thresholds are getting lower.  Additional tax credits for babies in the first year of life worth up to £545 were withdrawn in April 2011 and the planned toddler element of tax credits worth £209 have been scrapped.11,12

In addition, the Health in Pregnancy Grant worth £190 was withdrawn in January 2011.13  The Child Trust Fund, a voucher for £50 – £500 has also been stopped for children born after 2 January 2011.14  Furthermore, the Sure Start Maternity Grant one-off payment of £500 for women on low incomes or certain benefits has been reduced from April 2011 to only apply to the first child.15

Recent changes in these benefits appear to make the poor worse off.  ‘Born broke’, a report by Family Action 2011 found the changes listed in this summary make the poorest families up to £1735 worse off over pregnancy and the first year of life.12

Evidence Submission by: Dr Claire Chantry


References

All searches performed 28/12/2011.

1.  Spencer, N.  2011. End Child Poverty: Health Consequences of poverty for children. Available from: http://www.endchildpoverty.org.uk/files/Health_consequences_of_Poverty_for_children.pdf

2. Centre for Economic and Social Inclusion (‘Inclusion’) and the Child Poverty Action Group (‘CPAG’).  Policy brief: Child poverty toolkit: Child poverty and health.  Available from:  http://www.childpovertytoolkit.org.uk/uimages/File/CP_Health.pdf

3. Liverpool Victoria Friendly Society Limited (LV=).  Cost of a child press release 23 February 2010. Available from: http://www.lv.com/media_centre/press_releases/LV-cost-of-a-child-survey-2010

4. The national archives: legislation.gov.uk.  Child Poverty Act 2010.  Available from: http://www.legislation.gov.uk/ukpga/2010/9/introduction

5. NHS Choices: What are my rights during pregnancy?  Available from: http://www.nhs.uk/chq/Pages/953.aspx?CategoryID=54&SubCategoryID=138

6. Directgov: Statutory Maternity Pay.  Available from: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/DG_175917

7. Department for Work and Pensions: Maternity Allowance.  Available from: http://www.dwp.gov.uk/publications/specialist-guides/technical-guidance/ni17a-a-guide-to-maternity/maternity-allowance-ma/

8. HM Revenue and Customs: Child benefit.  Available from: http://www.hmrc.gov.uk/childbenefit/start/who-qualifies/what-is-childbenefit.htm#2

9. Department of Health: Healthy Start.  Available from: http://www.dh.gov.uk/en/Publichealth/HealthyStart/index.htm

10.  HM Revenue and Customs: What are Tax Credits? Available from: http://www.hmrc.gov.uk/taxcredits/start/who-qualifies/what-are-taxcredits.htm

11. Directgov: Child Tax Credits.  Available from: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCredits/Gettingstarted/whoqualifies/Childrenandtaxcredits/DG_172851

12. Family action 2011.  Born broke.  Available from: http://www.family-action.org.uk/uploads/documents/parents%20with%20new%20children.pdf

13. Directgov National Archives.  Website snapshot taken 18/01/2011.  Health in pregnancy grant.  Available from: http://webarchive.nationalarchives.gov.uk/20110118142001/http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/HealthinPregnancyGrant/DG_173502

14. Directgov: Child trust fund – the basics.  Available from:  http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ChildBenefitandChildTrustFund/ChildTrustFund/AnintroductiontotheChildTrustFund/DG_193690

15. Directgov: Sure Start Maternity Grant.  Available from: http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Expectingorbringingupchildren/DG_10018854