Debt and financial concerns are forcing new mothers to return to work, according to new research from uSwitch.com.
52% of new mums returning to the workplace do so because of debt and financial considerations, compared with just 22% who want to continue their career.
The average family sees a 34% drop in their net monthly household income during the maternity leave period with income dropping from £3,431 a month to £2,266 a month while on statutory maternity pay. At the same time costs rocket with the average mum spending £2,152 on baby items prior to giving birth.
While on maternity leave mums spend an additional £2,521 on baby items – accounting for 90% of the average net monthly household income during the statutory maternity pay period.
56% are not adequately prepared financially to survive on a reduced income while meeting the additional costs of a baby. 25% are fully equipped to fund their maternity leave and have enough money saved in advance while 9% don’t need to worry as their partner’s income is enough to see them through. 29% save less than £1,000 to help cushion the blow, but on average expectant parents save £3,265 to help limit the impact of losing a large chunk of their net household income.
41% of new mums end up in debt during maternity leave. The average debt incurred is £1,329. This, coupled with other financial pressures, forces many to change their plans.
But despite debt and financial considerations being the biggest driver behind new mothers returning to work, 40% of those who return end up taking a pay cut to go part-time. Only 21% of new mothers returning to work believe that their future progression and earning capacity is unaffected by their maternity break.
Ann Robinson, consumer policy director at uSwitch.com, said: “Debt and financial considerations combine to be the biggest motivating factor behind new mothers returning to the workplace. Despite women being told that they can ‘have it all’ and can choose whether to be a working or stay-at-home mum
