Section 48: Rate of maternity allowance
142.This section amends section 35A of the Social Security Contributions and Benefits Act 1992, which sets out the weekly rate of MA by replacing subsections (1) to (3) of section 35(A):
Subsection (1)(a) inserts a new subsection (1) so that women eligible for MA will be paid the lesser of 90% of their average weekly earnings or the prescribed standard rate, for the duration of the payment period.
Subsection (1)(b) amends the current subsection (5)(c)(i) to ensure that women who have paid a Class 2 contribution are deemed to have earnings at a level 90% of which will equal the flat rate of SMP, for any week within the specified period. As a result, they will be entitled to £100 per week. This, together with subsection (1)(c) ensures that (as now) a self-employed woman who has paid a Class 2 contribution throughout the specified period will receive standard rate MA.
Subsection (2) is a transitional provision ensuring that reference may be made to current rates where appropriate after the coming into force of the maternity pay provisions contained in this Act.