§ Mr. LawsTo ask the Secretary of State for Work and Pensions what his estimate is of the change in statutory maternity pay in real terms from 1995–96 to 2003–04 (planned); what his estimate is of the amount of this benefit received by each decile of the UK income distribution; and if he will make a statement. [97360]
§ Maria EagleEmployers pay Statutory Maternity Pay (SMP) to employees who meet the qualifying conditions. Currently it is paid for a total of 18 weeks; the first six weeks at a weekly rate equal to 90 per cent. of the woman's average weekly earnings and the remaining 12 weeks at £75.00. For women expecting babies on or after 6 April 2003, the payment period will be extended to 26 weeks. In addition from 6 April 2003, the weekly rate for all women (payable after the first six weeks) will be increased to £100, unless this is more than 90 per cent. of her average weekly earnings, in which case payment continues at the 90 per cent. rate.
The available information is in the table.
Benefit expenditure: Statutory Maternity Pay (GB) 1995–96 to 2003–04 £ million, 2002–03 prices Outturn 1995–96 628 1996–97 1396 1997–98 565 1998–99 606 1999–2000 617 2000–01 664 Estimated outturn 2001–02 673 Planned 2002–03 697 2003–04 946 1 This figure includes a re-statement, by the Government Actuary, of estimated recoveries over preceding years. Notes:
1. Reliable estimates of benefit received by decile of income distribution are not available.
2. On average employers are compensated for 93 per cent. of SMP paid to employees. The table does not include the amount for which employers are not compensated.
Source:
Benefit expenditure tables, pre-Budget report 2002.