An online petition calling for Statutory Maternity Pay (SMP) to be increased in line with the current rate of inflation to help with the rising costs of living has received more than 25,430 signatures of support. However, the Department for Work and Pensions (DWP) responded to it last month saying there are “no plans” to review the current payment rates.
But, despite the response, the SNP’s Chief Whip, Owen Thompson MP, has asked the DWP about the “potential merits” of increasing Statutory Maternity and Paternity Pay to the level of the real living wage as determined by the Living Wage Foundation.
Statutory Maternity Pay is currently paid at 90% of average weekly earnings, before tax, for the first six weeks. It is then £156.66 or 90% of average weekly earnings - whichever is lower - for the next 33 weeks, working out to an average total of £7, 500 per year.
Pensions minister Guy Opperman responded to the SNP query, echoing the previous response given in the petition, but with a more detailed explanation of why the payments cannot be increased.
He said: “Statutory Maternity Pay (SMP) and Statutory Paternity Pay (SPP) are not, and have never been, intended to replace earnings completely.
“Both are reviewed annually, alongside state benefits, and are generally increased in line with the Consumer Prices Index (CPI).
“From April 2022 the standard rate of SMP and SPP increased to £156.66, in line with the September 2021 CPI rate of 3.1%.”
The Office for National Statistics (ONS) released the latest CPI figure earlier this week and showed that inflation has risen from 9.1% in May to 9.4% in June.
The uprating for most DWP benefits is determined by the September CPI and announced in November.
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