For Olivia Davson, 32, a mother of two from London, this year’s Budget hasn’t gone far enough to support new working families.
While she welcomed the two-child benefit cap lift, Ms Davson believes the Chancellor “completely missed a trick” to make wider reforms. She said: “At the moment, maternity and paternity pay is less than half the national living wage.”
When asked if she’s felt supported, Ms Davson said: “No. Going on maternity leave was a huge shock to the system. Families are almost being punished for having children, when it should be the opposite.”
Financially, she said the current system is outdated and humiliating: “Statutory maternity pay is almost like pocket money for mums.”
Current rules mean Statutory Maternity Pay (SMP) is paid for up to 39 weeks.
New mothers receive 90% of their average weekly earnings (before tax) for the first six weeks, then £187.18 or 90% of their average weekly earnings (whichever is lower) for the next 33 weeks.
The income tax threshold freeze doesn’t reassure Ms Davson either. She said: “It’s just a stealth tax…squeezing middle earners and limiting their ability to save. It’ll drag more families into taxation where their salaries are not keeping pace with the current cost of living.”
She warned the Government could be sleepwalking into a crisis. She said: “Parents don’t feel financially able to grow or start families… teenagers and people in their early 20s are anticipating having no or fewer children. If they don’t address this now, it’s going to become a bigger problem down the line.”
It was her frustration that pushed her to start Cubbi, a free discount app for new and expecting parents.
Speaking on the app, which she launched last year with her sister, Ms Davson said: “Cubbi is helping new parents through a really financially difficult time save money on their favourite brands – from Adidas to Tommy Tippee.”
Looking ahead, Ms Davson feels let down. She said: “I feel disappointed. I would’ve loved to see the Government take further strides, with a more long-term view on the change that’s needed for new families.”
