The last thing new or expectant mums need is the worry that they will not receive the maternity pay they were expecting from their employer. At such an expensive time, every penny will usually be accounted for, and any change to your financial situation will be a cause for concern.
The good news is that if your employer has entered into liquidation or administration then your maternity pay will instead be paid by HM Revenue & Customs. HMRC pays at the statutory rate only. If your contract gave you enhanced maternity pay above that rate, the extra is a claim against the company, and it is treated as arrears of pay. Only a limited part of that ranks as preferential: arrears of pay for the four months before the insolvency, capped at £800 in total per employee. Anything above the cap is an unsecured claim, and unsecured claims in an insolvent liquidation are often paid very little or nothing.
How much maternity pay can you receive from HMRC?
To qualify for statutory maternity pay (SMP), you must have been continuously employed by the business for at least 26 weeks up to any day in the ‘qualifying week’. The qualifying week is the 15th week before the expected week of your child’s birth. If you meet the qualifying criteria, statutory maternity pay will be paid for up to 39 weeks and you can expect to receive:
- 90 percent of your average weekly earnings for the first six weeks.
- £194.32 a week for 2026/27, or 90 per cent of your average weekly earnings if that is lower, for the next 33 weeks. The standard rate changes each April.
How should you claim maternity pay if your company closes down?
There are two separate routes, and it helps to keep them apart.
For statutory maternity pay from and including the week your employer became insolvent, HMRC takes over. Contact HMRC’s Statutory Payment Dispute Team on 0300 322 9422, Monday to Friday, 8:30am to 5pm. Raise it with them within six months of the payment not being made.
For other money the company owes you, including arrears of pay, holiday pay, notice pay and statutory redundancy pay, claim through the Redundancy Payments Service online at claim.redundancy-payments.service.gov.uk. The insolvency practitioner gives you the case reference number, which begins CN, and you claim using that, your National Insurance number and an email address. Paper claim forms are no longer the route.
Unfortunately, not every case is quite so clear cut
Once a company has been declared insolvent, HMRC will cover the statutory maternity pay for the full term. However, until the week of the insolvency itself, all maternity payments should be paid by your employer. The problem comes if the employer does not have the funds to make maternity payments but is yet to officially enter insolvency.
If your employer is refusing to pay your statutory maternity pay and is not yet insolvent, HMRC’s Statutory Payment Dispute Team can decide the point. The number is 0300 322 9422, Monday to Friday, 8:30am to 5pm, and you should raise it within six months. HMRC asks you to try to resolve it with the employer first.
Once the company formally enters insolvency, HMRC picks up statutory maternity pay from and including the week of the insolvency. Ask the insolvency practitioner for the case reference number, then claim any other money you are owed through the Redundancy Payments Service.