Aug 4 2008
People saving for children often think about putting money aside for school or university fees, but according to a new article parents should be saving for their babies' first months.
A study on maternity pay, carried out by Mercer, has identified British mothers-to-be as among the worst off in Europe, the Independent on Sunday reported, urging parents to prepare for the weeks following the birth.
Niklaus Kobel, employment specialist with the consultancy company, told the newspaper maternity pay legislation has improved over the past five years, with women now entitled to 39 weeks' statutory pay.
"However, from a benefit level perspective, there is still a long way to go to reach the top levels of EU provision," he said.
Talking to the paper, financial consultant Natasha Freedman advised parents to take advantage of child tax credits, child care vouchers and child trust vouchers and to invest in an Isa.
Ms Freedman also recommended parents update their wills to protect their children.
Currently, statutory maternity pay is 90 per cent of average earning for six weeks followed by up to £117.18 for 33 weeks.
