As a result of the extension of full social insurance cover to part-time workers in April 1991, many women are now becoming eligible for maternity benefit for the first time.
The maternity benefit scheme pays women in current employment 70 per cent of their gross income in the relevant tax year, subject to a minimum weekly payment of £60 per week and a maximum of £154. The Social Welfare Bill currently before the House provides for both the minimum and the maximum rate to be increased to £65 and £159 respectively.
A husband on social welfare payments can receive an increase for his wife as his dependant even if she is working, provided she is earning £55 or less per week. He can also qualify for full child dependant increases. However, if a person who is an adult dependant on her spouse's social welfare payment is awarded a payment in her own right, in this case a maternity benefit payment, she ceases to be an adult dependant and consequently, the spouse is not entitled to claim an adult dependant allowance and the child dependant allowances are payable only at half rate. Because of this, some part time workers earning less than £55 per week, with spouses on social welfare, can find that they are better off remaining as adult dependants on their husband's payment than claiming their own maternity benefit payment of £60 per week.
This arises from the general provision in relation to overlapping social welfare payments in that an adult dependant allowance is not payable in respect of a person who is in receipt of a social welfare payment in their own right. Where however the individual payment is less than that of the adult dependant payment the claimant may choose to opt for the higher amount.