Having a baby changes almost every aspect of your finances — your income drops, your outgoings rise, and you have a whole new person whose future depends on decisions you make now.
Here’s the complete financial checklist for expecting and new parents in the UK in 2026.
Before the Birth
1. Understand Your Maternity/Paternity Pay Entitlements
Statutory Maternity Pay (SMP) — 2026/27:
| Period | Rate |
|---|---|
| Weeks 1–6 | 90% of average weekly earnings |
| Weeks 7–39 | £184.03/week or 90% of average earnings (lower of the two) |
| Weeks 40–52 | Unpaid (if you take full 52 weeks) |
To qualify for SMP: You must have worked for your employer for 26+ weeks by the 15th week before your due date and earn at least £123/week (Lower Earnings Limit).
Enhanced maternity pay: Many employers (particularly public sector, banks, large corporates) offer above-SMP pay. Check your employment contract. There’s typically a “return to work” clause attached.
Statutory Paternity Pay (SPP) — 2026/27:
- 1 or 2 weeks of paid paternity leave
- Paid at £184.03/week or 90% of earnings (lower of the two)
- Must be taken within 56 days of the birth
Shared Parental Leave (SPL):
- Eligible parents can share up to 50 weeks of leave and 37 weeks of pay
- Pays at SPP rate (£184.03/week or 90% of earnings)
- Requires planning and agreement with employer — explore early
2. Calculate Your Income Drop
Work out exactly what you’ll receive during maternity leave:
| Month | Income source | Amount |
|---|---|---|
| Months 1–1.5 | 90% of salary | £ |
| Months 1.5–9 | SMP/enhanced pay | £ |
| Months 10–12 | Unpaid (if taken) | £0 |
Then work back: what essential costs do you have? Can you cover them on reduced income? If not, now (pre-birth) is when to build up savings.
A practical rule: Try to save 3 months of the income drop before going on maternity leave.
3. Review and Increase Emergency Savings
Aim for at least 3–6 months of essential expenses before your due date. With one income potentially dropping, unexpected costs (car repair, home issue, medical) are harder to absorb.
4. Update Your Wills
If you haven’t made wills since getting married (or at all), now is critical. Your will should:
- Appoint guardians for your child if both parents die
- Define who inherits your estate
- Name an executor
Cost: Wills start around £90–£250 per person. Pair them with a Lasting Power of Attorney (LPA) for complete protection.
5. Review Life Insurance
Your coverage needs likely increase significantly with a child:
- A rule of thumb: 10× annual salary for the main earner, term until the child is independent (typically 18–25 years)
- If your partner would struggle financially without your income, consider increasing cover now
- Premiums are lower if you buy before health issues arise
Life insurance quotes are available online in minutes. Compare via comparison sites or a whole-of-market broker.
6. Consider Income Protection Insurance
Statutory Sick Pay (SSP) is just £116.75/week for 28 weeks. If you became too ill to work, how would your family cope?
Income protection pays a monthly income if you can’t work due to illness or injury, until you’re well enough to return or until the end of the policy term. It’s particularly important for self-employed parents or anyone without a generous employer sick pay scheme.
After the Birth
7. Claim Child Benefit — Immediately
Rates (2026/27):
- £26.05/week for the first/only child
- £17.25/week for each additional child
Annual value: ~£1,354/year for one child.
Critical point about NI credits: If you’re the lower-earning parent (or not earning during maternity leave), claiming Child Benefit earns you NI credits — protecting your future State Pension record. Claim even if the High Income Child Benefit Charge will cancel out the payment — just elect not to receive the money.
You can backdate Child Benefit claims up to 3 months. Don’t wait.
Apply at: gov.uk/child-benefit
8. Register for Free Childcare Hours
From 2026, the government’s expanded free childcare offer provides:
| Age | Hours per week | Condition |
|---|---|---|
| 9 months–2 years | 15 hours | Both parents working |
| 2–3 years | 15 hours | All; 30 hours if working |
| 3–4 years | 30 hours | Working parents |
Important: “Free” hours don’t cover all costs — providers can charge for meals, consumables, and extra hours. Check with local providers.
Apply via: Childcare Choices at childcarechoices.gov.uk
9. Check Universal Credit Childcare Element
If you’re on Universal Credit, you may claim back up to 85% of childcare costs (for children up to 16). This is separate from and can be stacked with the free hours offer.
10. Tax-Free Childcare
For working parents not on Universal Credit:
- Government tops up childcare spending by 20% (£2 for every £8 you put in)
- Maximum government top-up: £2,000/year per child (£4,000 for disabled children)
- Access via a Tax-Free Childcare account
Cannot be used at the same time as employer childcare vouchers (legacy scheme for those still enrolled).
Longer-Term Planning
11. Consider a Junior ISA or Child Savings Account
Junior ISA (JISA):
- Tax-free savings/investments for your child
- Annual allowance: £9,000 per tax year
- Cannot be accessed until the child turns 18
Starting early makes a significant difference due to compound growth. Even £50/month from birth to 18 grows to around £19,000 at 5% growth (basic illustrative figure — not a guarantee).
12. Update Pension Nominations
Your pension nomination should now include your child as a secondary beneficiary (primary being your partner). Update forms with all pension providers.
13. Childcare Budget Planning
Childcare in the UK is among the most expensive in the OECD. Plan ahead:
| Childcare type | Average cost (2026) | Notes |
|---|---|---|
| Nursery (full-time, under 2) | £1,100–£1,500/month | Varies hugely by region |
| Childminder | £600–£900/month | Generally cheaper than nursery |
| After-school club | £15–£25/session | From age 4+ |
| Au pair | £300–£600/month + board | Live-in, flexible |
| Nanny | £1,800–£2,500/month | After-tax; gross cost higher |
Plan your return-to-work finances against actual local childcare quotes — not national averages.
Having a Baby Financial Checklist
| Task | When | Done? |
|---|---|---|
| Notify employer of pregnancy (by 15 weeks before due date at latest) | During pregnancy | ☐ |
| Calculate income during maternity leave | Early pregnancy | ☐ |
| Build up 3 months of pre-mat-leave savings | Before birth | ☐ |
| Make or update wills (include guardianship of child) | Before birth | ☐ |
| Review and increase life insurance | Before/just after birth | ☐ |
| Consider income protection | Before/just after birth | ☐ |
| Claim Child Benefit | Within days of birth | ☐ |
| Register for Tax-Free Childcare account | After birth | ☐ |
| Apply for free childcare hours (when eligible) | From 9 months | ☐ |
| Update pension nominations | Within 1 month | ☐ |
| Research local childcare options and costs | 3–6 months before needed | ☐ |
| Open Junior ISA | Anytime after birth | ☐ |