New Mums Forced Back to Work by Debts

18-Jun-2010

As a new parent, the decision about when or whether to go back to work can be a difficult one.  However, a surprising number of new mums in the UK are being deprived of the choice because they cannot afford to stay on maternity leave, according to new research.

The research, carried out by comparison website uSwitch.com, highlights not only the rising costs of having a baby but also the fact that many new parents are unprepared for the financial burden of their new family.  Tellingly, over half of new mums (52%) return to work because of financial constraints, compared to the 22% who do so because they wish to continue their career.  Four in ten new mums choose to take a pay cut in order to work part-time. 

During maternity leave, there is apparently a 34% drop in the average net household income from 3,431 GBP to 2,266 GBP per month.  At the same time, the increased costs of preparing for the new arrival can weigh heavily on the remaining income, with an average of 2,521 GBP being spent on baby items during maternity leave. This amounts to a whopping 90% of the take-home pay. 

56% of the new mums surveyed did not feel that they were sufficiently well prepared for the combination of new baby expenses and a reduced household income.   Only a quarter of respondents had enough money saved in advance to see them through their maternity leave without racking up debts, and less than 10% were able to rely on their partner's income to support them.

Surprisingly, almost three in ten new mums (29%) say that they were not aware of their company's maternity package before they took maternity leave, with a further 30% deciding to have children in spite of the package they have been offered due to the perceived time pressure of not wanting to have children too late.  Four in ten new mums get into debt during the time in which they are on maternity leave, with an average debt of 1,329 GBP being racked up. 

Ann Robinson, Consumer Policy Director at uSwitch.com, says:  "Preparation is key for those planning a family. Check out your company's maternity policy, calculate how much you will need to survive, save money in readiness and cut down on household bills and unnecessary expenses. By keeping a tight lid on your household budget hopefully you will remember your maternity leave for the right reasons and not for the financial headache and debt it can bring."

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