Financial Help for New Parents in the UK: Tax Benefits & Support Available

Becoming a parent is exciting, life-changing, and expensive. Between baby essentials, childcare, and time off work, the costs can quickly add up. The good news is that there are several UK tax benefits, government payments and financial support schemes designed to help new parents manage the early years.

If you’ve just welcomed a new baby or are preparing for your arrival, this guide breaks down the key support available in 2025, how to claim it, and what to look out for.

If you’re employed and expecting, you may qualify for Statutory Maternity Pay.

As of November 2025, SMP provides:

• First 6 weeks – 90% of your average weekly earnings (before tax)
• Next 33 weeks – £184.03 per week or 90% of your average weekly earnings (whichever is lower)

To qualify, you must have been employed continuously by the same employer for at least 26 weeks before the 15th week before your due date and earn at least £123 per week on average (before tax).

Parents can share up to 50 weeks of leave and 37 weeks of pay.

This allows families to divide time off more flexibly, for example, alternating blocks of leave so both parents share care.

SPL Pay (ShPP) is paid at £184.03 per week or 90% of weekly earnings (whichever is lower).

Eligible partners or fathers can take up to 2 weeks of paid paternity leave, paid at £184.03 per week or 90% of average weekly earnings (whichever is lower).

Some employers offer enhanced paternity pay, so check your contract or speak with HR for details.

This scheme continues in 2025 and is one of the most valuable forms of support for working families.

For every £8 you pay in childcare costs, the government adds £2, up to £500 every 3 months (or £1,000 for children with disabilities).

You can use it to pay for:

• Nurseries
• Childminders
• After-school clubs
• Holiday childcare

Available until your child is 11 (or 17 if your child has disabilities).

Even if you earn well, you may still qualify, as long as each parent earns at least £9,518 a year and less than £100,000.

Child Benefit is available to most parents and is often one of the first things to claim after your baby’s birth.

By claiming Child Benefit, you can get:

• An allowance paid to you for each child, which you’ll usually get it every 4 weeks

Higher-earning parents should still claim because it protects your National Insurance record and helps secure your future State Pension.

If either parent earns over £60,000, the High Income Child Benefit Charge (HICBC) may apply, meaning some or all of the benefit could be repaid through a tax return. Many families still benefit overall, and an accountant can help ensure this is managed tax-efficiently.

From September 2025, working parents in England can now access up to 30 hours of funded childcare per week for children aged nine months to four years, provided they meet the earnings criteria.

To qualify, each parent must normally earn between £9,518 and £100,000 per year, and the childcare must be with an approved provider such as a nursery, childminder or preschool.

This expansion is designed to reduce childcare costs significantly and support parents returning to work sooner.

If you’re on a lower income or have recently stopped work to care for a baby, you may qualify for Universal Credit.

You may receive:

• A child element paid monthly per child
• Up to 85% of childcare costs covered

If eligible, the government may help cover up to:

• £1,041 per month for one child
• £1,785 per month for two or more children

If you return to work and spend time working from home (even part-time), you may be able to claim work-from-home tax relief, if required by your employer.

Flat rate relief – up to £26 per month (if eligible)

There are several additional forms of help that may support new parents, depending on circumstances.

The Healthy Start Scheme offers prepaid cards for low-income families and pregnant women to buy essentials like milk, formula, fruit and vegetables.

If you don’t qualify for Statutory Maternity Pay, you may be able to claim Maternity Allowance, worth up to £184.03 per week for 39 weeks.

Some families may also be eligible for a one-off maternity grant, depending on location and benefits received.

Finally, if you have older children born between 2002 and 2011, they may have a Child Trust Fund, which they can access at age 18. This is something many families are unaware of.

Here’s a quick checklist to help get started:

• Register baby’s birth (needed to claim benefits)
• Apply for Child Benefit
• Check SMP, Paternity Pay, or Maternity Allowance eligibility
• Open a Tax-Free Childcare account if returning to work
• See if Universal Credit support applies

Tax rules around parental benefits, especially Child Benefit tax charges, self-employed parents, or higher income households, can be confusing.

As an accountancy firm, we can:

• Advise how to optimise claims if one parent earns over £60,000
• Ensure self-employed parents maximise maternity allowance
• Review your taxes to prevent overpayment
• Help with tax returns relating to Child Benefit

We hope this blog was helpful.

Please get in touch if you have any questions around how weas accountants can help you.

Email us on info@future-cloud.co.uk

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