Statutory Maternity Pay

HC Deb 29 July 1997 vol 299 c248W

Mr. Pond

To ask the Secretary of State for Social Security if she will estimate the effect on Government revenues in a full year of a 1 per cent. change in the employers' standard recovery rate for statutory maternity pay. [8200]

Mr. Denham

We aim to help women balance their careers and family responsibilities; to support employers, particularly small businesses, in their administration of the statutory maternity pay scheme; and to ensure value for taxpayers' money.

The standard recovery rate of SMP for large employers is 92 per cent. It is estimated that a 1 per cent. adjustment in the standard rate would lead to a change in Government revenues of £5 million in 1998–99. Small businesses are able to recover SMP costs in full.