DWP issues guidance on coronavirus-related amendment to the calculation of earnings for maternity allowance

Guidance sets out new rules that relax earnings condition for women with lower earnings while furloughed under Job Retention Scheme

The DWP has issued new guidance in relation to a coronavirus (COVID-19) related amendment to the calculation of earnings for maternity allowance.

In DMG Memo 9/20, the DWP provides guidance on a change to maternity allowance earnings conditions introduced by the Maternity Allowance, Statutory Maternity Pay, Statutory Paternity Pay, Statutory Adoption Pay, Statutory Shared Parental Pay and Statutory Parental Bereavement Pay (Normal Weekly Earnings etc.) (Coronavirus) (Amendment) Regulations 2020 (SI.No.450/2020), that came into effect on 25 April 2020.

In particular, the DWP advises that -

‘Where -

1. a woman is a furloughed employee; and
2. the woman’s employer has claimed and is in receipt of financial support in respect of the woman’s earnings under the Coronavirus Job Retention Scheme; and
3. the woman’s earnings are lower than they would otherwise have been as a result of that woman being a furloughed employee

- then in the period of 13 weeks over which the woman’s earnings are averaged, the average weekly amount of the earnings are determined as if for that week she were paid the amount she would have derived from her employment had she not been a furloughed employee.’

DMG Memo 9/20 is available from gov.uk