§ Mr. WebbTo ask the Secretary of State for Work and Pensions how much was spent on contributory maternity benefits in each of the last 30 years; and which categories of national insurance contributions generated eligibility to such benefits in each year. [166523]
§ Malcolm Wicks[holding answer 2 July 2002]: Maternity benefits are being reformed as part of the Government's drive to help pregnant women and parents financially and to achieve a better balance between their work and home lives.
The improvements introduced by the Welfare Reform and Pensions Act 1999 mean that entitlement to maternity allowance is now based on a woman's earnings and that help is extended to women earning at least £30 a week but less than lower earnings limit applied to national insurance contributions. As a result of these changes, an additional 16,000 low-paid expectant mothers a year can get maternity allowance. Our reforms have also increased maternity allowance by 15 per cent. for around 11,000 self-employed women who previously received less benefit than employed women.
Prior to 20 August 2000, entitlement to maternity allowance was based on the payment of either Class 1 or Class 2 national insurance contributions by the mother within the relevant qualifying period.
We have also introduced Sure Start Maternity Grants to help people on low incomes meet the cost of buying essential items for a new baby. These grants have been increased this year to a significant £500 for babies due or born on or after 16 June 2002. The new scheme means more than just a cash payment. Mothers and expectant mothers also receive health advice for themselves and, importantly, for their child.
Prior to March 2000, Social Fund Maternity Payments were available to women or families in receipt of qualifying benefits or tax credits. These payments replaced the maternity grant in April 1987. Between 1982 and 1987 eligibility for the maternity grant was based solely on a test of residency in Great Britain. For confinements taking place before 4 July 1982, eligibility for the maternity grant was linked to the contribution record of either the mother or her husband using national insurance contributions of any class.
The information on expenditure on contributory maternity benefits is in the table.
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Expenditure on contributory maternity benefits £million Maternity allowance Maternity grant 1972–73 42 18 1973–74 42 17 1974–75 47 16 1975–76 55 16 1976–77 81 15 1977–78 92 15 1978–79 105 16 1979–80 125 16 1980–81 149 16 1981–82 158 16 1982–83 152 416 1983–84 141 — 1984–85 161 — 1985–86 164 — 1986–87 168 — 1987–88 51 — 1988–89 27 — 1989–90 30 — 1990–91 34 — 1991–92 31 — 1992–93 32 — 1993–94 33 — 1994–95 27 — 1995–96 29 — 1996–97 33 — 1997–98 36 — 1998–99 38 — 1999–2000 38 — 2000–01 545 — 1 Figures are expressed in cash terms to the nearest £1 million. 2 Statutory maternity pay was introduced in 1987 replacing maternity allowance for most employees. 3 Figures are consistent with the Budget 2002 expenditure tables. 4,5 Conditions of entitlement to maternity grant and maternity allowance changed during the course of the financial years 1982–83 and 2000–01 respectively. Figures include expenditure under both the contributory and non-contributory conditions. Source:
Departmental reports and benefit forecasting model development. Maternity grant expenditure prior to 1978–79 is estimated from the published number of grants in each financial year.