Expectant parents on furlough to receive full parental leave

On 24th April the government announced that furloughed workers planning to take paid parental leave or adoption leave will be entitled to payments based on their usual earnings rather than their furlough pay.

Statutory maternity pay (as well as other forms of parental and Adoption pay) is normally calculated based on average earnings over an 8 week period. The first 6 weeks of statutory maternity pay and statutory adoption pay are based on 90% of these average earnings. Entitlement to Maternity allowance is also based on average earnings but over a 13 week period.

The new statutory instrument provides changes to the above assessment periods so that individuals entitled to family related pay starting on or after 25 April will have their payments based on their usual full pay.

For many expectant parents this will be a welcome relief in the current crisis that will be already impacting many people’s finances.

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