Welcome to my weekly blog and I hope you all are having a nice summer and enjoying the World Cup – now from a neutral point of view!
A recent study reveals that more than half of new mothers return to work due to financial pressures, with many cutting their maternity leaves. According to the survey, 56% women admitted they were unprepared for the fiscal impact of having a child. The survey was conducted by the comparison website uSwitch.
The study paints an image which is a stark contrast to that of modern mothers “having it all”. More than half (52%) of those returning to work after the birth of a child do so because of debt problems.
These are some of the highlights of the study:
- Only 22% women choose to return because they want to continue their career.
- The average net household income drops by 34% from £3,431 to £2,266 a month while on statutory maternity pay. However, costs soar, with parents spending an average of £2,152 in the run up to the birth on baby items, and a further £2,521 – more than a month’s reduced net household income – after the baby is born.
- The average amount saved in anticipation of having a baby is £3,265, but 56% of the 1,000 mums questioned for the survey said they were not fully prepared for the impact of surviving on a reduced income.
- Nearly a third of new mums were not aware of their company’s maternity package when they decided to have a baby.
- More than four in 10 mums have ended up in debt while on maternity leave, incurring an average of £1,329.
Ann Robinson, consumer policy director at uSwitch, said: “Debt and financial considerations combine to be the biggest motivating factor behind new mothers returning to the workplace. Despite women being told that they can ‘have it all’ and can choose whether to be a working or stay-at-home mum, the fact is that most have this choice stripped away from them by the financial realities of modern life.
With the new government planning to cut child trust funds and the impending budget causing concerns over pay freezes and redundancies, family finances are under more pressure than ever. The high cost of living coupled with the often crippling cost of a mortgage means that many households today need two incomes to get by. Unfortunately, new mothers are often paying the price for this by seeing their choices taken away.”
I always stress the importance of seeking impartial and good debt advice. It is the first and often the most difficult step to take but it is also the most important. If you are worried and are struggling, act now.
Thanks
Nigel
Tags: Debt Advice, Debt Help, debt management, Debt Problems, debt solutions