Statutory paternity pay

Statutory paternity pay

Statutory paternity pay (SPP) is paid to clients who are (or have recently been) employees and are taking paternity leave because their partner has just given birth. They do not have to be male. Clients can also get SPP if they are adopting a child and their partner is claiming SAP. Clients may also qualify for statutory shared parental pay (SSPP – see here).

A client’s average gross weekly earnings must be at least the NI lower earnings limit. They must have worked continuously for their employer for 26 weeks up to and including the 15th week (called the ‘qualifying week’) before the week in which the baby is due.

SPP is claimed from the client’s employer and is paid in the same way as normal pay. The employer must be given relevant notice and information within a strict time limit. SPP is paid for a maximum of two weeks which do not have to be consecutive weeks. It is paid at either a standard rate or 90 per cent of average weekly earnings, whichever is lower.

SPP is not means tested, but counts as earnings for means-tested benefits. The first £100 of a client’s weekly SPP is ignored for tax credits; anything above £100 is counted as employment income.

SPP is taxable.