You’ll buy the cot, the car seat and probably far too many tiny socks. But most parents-to-be never work out what a baby will actually cost them month to month. The drop in income alone can catch people off guard, especially if you haven’t checked your maternity or paternity pay entitlements.
A bit of planning now will take a lot of the stress out of those first few months, and we’ve put together a checklist that covers the key things to sort before your due date.
Check Your Maternity and Paternity Pay
Start with the basics: what will you actually be paid while you’re off? For the 2026/27 tax year, Statutory Maternity Pay (SMP) is 90% of your average weekly earnings for the first six weeks, then drops to £194.32 per week (or 90% of your average weekly earnings, whichever is lower) for the remaining 33 weeks.
Statutory Paternity Pay follows the same £194.32 weekly rate for up to two weeks. Since April 2026, paternity leave is a day-one right, so you won’t need 26 weeks of service to take the time off. But you will still need 26 weeks of continuous employment with the same employer to qualify for the statutory pay itself. If you’ve recently changed jobs, check where you stand.
Some employers top this up with enhanced packages, so dig out your contract or speak to HR. The difference between statutory and enhanced pay can be hundreds of pounds a month, and it’ll shape how much you need to save in advance.
Work Out the Income Gap
Once you know what you’ll be paid on leave, compare it against your usual monthly outgoings. Most households see a significant shortfall, particularly from month two of maternity leave when the rate drops. Map out your fixed costs like rent or mortgage payments, council tax, utilities and insurance. Then look at what you can realistically cut back on and what you can’t.
If there’s a gap, you’ve got time to build a buffer. Even putting aside a small amount each month between now and the birth will help cover the difference.
Update Your Life Insurance and Will
A baby changes everything when it comes to protection. If you don’t have life insurance, now’s the time to get it. If you do, check that the cover is still enough to support a growing family. Term life insurance is often the most affordable option for new parents, and premiums will be lower the younger and healthier you are when you take it out.
The same goes for your will. If you don’t have one, your estate will be divided according to the UK’s intestacy rules, which follow a fixed legal formula. Unmarried partners, for example, won’t inherit anything at all, regardless of how long you’ve been together. And if you already have a will, you’ll need to update it to include guardianship arrangements for your child. Most people keep putting it off, but with a child on the way, there’s no better time to get it done.
Start a Savings Plan for Your Child
Opening a Junior ISA early gives your child a head start. You can put away up to £9,000 per tax year, and the money grows tax-free until they turn 18. Even small regular contributions will add up over time, particularly if you start from birth.
If you’ve already got savings sitting in a general account, or you’ve received an inheritance, think about whether that money is working hard enough. A professional investment management service can help you put that money to work properly, so it keeps up with the extra costs of family life instead of losing value in a low-interest account.
A Checklist That Pays Off Long After the Birth
Getting your finances in order before a baby arrives isn’t about being cautious for the sake of it. It’s about giving yourself breathing room when life gets busy and unpredictable. The parents who stay calmest during those early months are usually the ones who took a few hours to plan ahead. You don’t need to have everything figured out, but ticking off the big items now will make a real difference later.
Disclaimer: Nothing about an investment’s past performance guarantees its future results. The value of your investments can drop as well as grow, and the income they generate may vary. You could recover less than your original investment.
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