What if we're having a baby?
Financial Checklist After Having a Baby
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- Last reviewed
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- 3 min read
This guide provides general information only. It is not financial advice or a personal recommendation and does not take account of your individual circumstances.
Quick answer
A new baby changes your finances in several places at once: parental pay, Child Benefit, childcare, savings and protection. The main things to look at are your parental pay and leave, claiming Child Benefit, budgeting for lower income, childcare support, updating or making wills, and checking whether life and income cover still reflect a bigger family.
Key figures
- maximum Statutory Maternity Pay period
- 39 weeks
- weekly statutory parental pay rate in 2026/27 (or 90% of earnings if lower)
- £194.32
- to register a birth in England and Wales
- 42 days
Before the birth: parental pay and leave
Check what your employer pays, as many pay more than the legal minimum. The statutory amounts for 2026/27 are:
- Statutory Maternity Pay: up to 39 weeks. The first 6 weeks are paid at 90% of average weekly earnings, then 33 weeks at £194.32 a week or 90% of average weekly earnings, whichever is lower.
- Statutory Paternity Pay: £194.32 a week or 90% of average weekly earnings, whichever is lower.
- Shared Parental Leave and Pay: lets parents share some of the leave and pay between them.
If you don't qualify for Statutory Maternity Pay, for example because you are self-employed, you may be able to get Maternity Allowance instead.
After the birth
- Register the birth. In England and Wales, this needs to be done within 42 days.
- Claim Child Benefit. Even if you or your partner earn above the threshold for the High Income Child Benefit Charge, claiming can protect National Insurance credits for a parent who isn't working, which count towards the State Pension. You can choose not to receive the payments while still keeping the credits.
- Tell HMRC or your employer about any changes that affect tax codes, if needed.
Budgeting for a different income
Parental leave usually means a lower income for a while, alongside new costs. A few things people often do:
- work out household income month by month during leave, including when enhanced pay drops to statutory pay
- list the new regular costs, such as nappies, clothes and childcare
- check when any fixed-rate deals on mortgages or loans end
Childcare support
Childcare help depends on where you live, your working hours and your income. In England, schemes include Tax-Free Childcare and funded childcare hours for eligible working parents. Eligibility and application timings matter, so it helps to check well before childcare starts.
Protection and benefits at work
A bigger family usually means more people depend on your income:
- Life insurance: does existing cover still reflect the family's needs, including childcare and education years?
- Income protection: how would the household manage if a working parent couldn't work for a long time?
- Death in service and pension nominations: update expression of wish forms so they reflect the new family.
- Critical illness cover: some policies include children's cover, so it may be worth checking what is included.
Wills and guardians
A will lets you appoint guardians for your children if both parents die. Without a will, a court may have to decide. Unmarried partners don't automatically inherit from each other, which makes a will especially important for unmarried parents.
Saving for the future
- An emergency fund covering a few months of essential costs helps with the unexpected.
- A Junior ISA lets family members save tax-free for a child until age 18.
- Pensions: check whether time on leave affects employer contributions, as schemes differ.
A simple checklist
- Check employer parental pay and leave policies.
- Plan household income for each stage of leave.
- Register the birth.
- Claim Child Benefit, even if you opt out of the payments.
- Look into childcare support early.
- Update pension and death-in-service nominations.
- Review life insurance and income cover.
- Make or update wills and name guardians.
- Build or top up an emergency fund.
Frequently asked questions
Many people do, even if they opt out of the payments, because claiming can protect National Insurance credits for a parent who isn't working. These credits count towards the State Pension.
The first 6 weeks are paid at 90% of average weekly earnings, then 33 weeks at £194.32 a week or 90% of average weekly earnings, whichever is lower.
A will is the usual way to appoint guardians for your children. Without one, a court may need to decide who looks after them if both parents die.