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HMRC's £200 Rule: Do You Have to Pay Back Your Child Benefit in 2026?
6 min read
Statutory Maternity Pay (SMP) is one of the most misunderstood elements of UK employment. Many new mothers are shocked when month 3 or 4 arrives and their income drops dramatically. Here is a complete month-by-month guide to SMP in 2026.
The Two Rates of SMP
SMP is paid in two distinct phases:
- Weeks 1–6: 90% of your Average Weekly Earnings (AWE) — no cap. If you earn £45,000/year, your AWE is £865/week, meaning you receive £778.85/week (90% of AWE) for the first 6 weeks.
- Weeks 7–39: The lower of 90% of AWE or the flat rate of £194.32/week. For most workers earning above £11,500/year, the flat rate of £194.32 applies from week 7.
Month-by-Month Breakdown (for a typical £35,000/year employee)
| Month | Weeks Covered | Rate | Gross Monthly (approx.) |
|---|---|---|---|
| Month 1 | Weeks 1–4 | 90% AWE = £606/week | ~£2,424 |
| Month 2 | Weeks 5–8 (mixed) | Transitions at week 7 | ~£1,476 |
| Months 3–9 | Weeks 9–39 | £194.32/week flat | ~£843/month |
| Month 10+ | Week 40+ | £0 (SMP exhausted) | £0 |
After Tax: What You Actually Receive
SMP is taxable. In the high-rate first 6 weeks, you pay income tax and NI as normal. In the flat rate phase (£194.32/week = £843/month), this is likely to fall below the monthly NI threshold and personal allowance, so many women pay minimal or zero tax during this phase.
Frequently Asked Questions
What if my employer pays Enhanced Maternity Pay?
Enhanced maternity pay (EMP) is anything above SMP that your employer offers voluntarily. This could be full pay for 3 months, 50% for 6 months, or any other arrangement. Check your employment contract or staff handbook.
Can I work during maternity leave?
You can work up to 10 "Keeping in Touch" (KIT) days during maternity leave without losing SMP. These are paid at your normal rate. You and your employer must agree on KIT days — they cannot be forced.
Calculate your full maternity pay schedule with our Maternity Pay Calculator.