Recommendation 23

HM Government Rejected

12 Government Response: Impact of Covid-19 on new parents: one year on The Government recognises that it is crucial to the success of an adoption placement that an adopter takes time off work to care for and bond with their child. This is why employed adoptive parents have broadly the same rights and protections as birth parents. So far, the Government has focused on supporting employed parents as they do not generally have the same level of flexibility over their work as self-employed parents do. But we recognize that affordability may limit the time away from work that some self- employed adopters can take and this is why statutory adoption guidance says that Local Authorities should consider making a payment – equivalent to Maternity Allowance – in cases where adopters do not qualify for any statutory payment because of their self- employment. an assessment of their family’s needs. This includes a whole host of support including discretionary means-tested financial support, advice, information and counselling, and support services. The Government recognises the value of the challenging but rewarding role played by special guardians who welcome a child in their home and is aware that a child brought up by a family member benefits from living with someone they already know and trust rather than a stranger. same services and support as any other parent or carer, including access to child benefit and child tax/pension credits, providing they do not receive local authority funding in respect of the child for whom they are a special guardian. “in need”, the local authority at their discretion may provide support services including financial support to safeguard and promote the welfare of the child, and where consistent with that duty, to promote their upbringing by their families. Alongside this, employed special guardians benefit from employment rights which are designed to designed to support employees in balancing work alongside caring responsibilities such as: emergency leave (“time off for dependants”), the right to request flexible working, Unpaid Parental Leave and Annual Leave. Universal Credit is a means tested system of support and where an individual claims Universal Credit, their award is adjusted to take account of any other financial support that the claimant is already receiving – including earnings, income and benefits. Maternity Allowance is a benefit paid by the State which is unearned income for Universal Credit purposes. Unearned income that is available to help meet daily living costs is taken fully into account in determining the amount of Universal Credit that an individual can be paid. As such, in determining the amount of Universal Credit that is available, Maternity Allowance is deducted pound for pound from the total value of the award. This principle applies to other benefits, for example, the same approach is applied to new style Jobseeker’s Allowance and new style Employment and Support Allowance. Maternity Pay (SMP) is more akin to earnings and is treated as a form of earnings in common with other statutory payments paid by employers. As a result, when adjusting Government Response: Impact of Covid-19 on new parents: one year on 13 the Universal Credit award, as with other earnings SMP is subject to the work allowance and tapering rules that are built into Universal Credit. Claimants retain 45p for every pound of earnings (or more if they are entitled to a work allowance). We have no plans to change the way that Maternity Allowance is treated in Universal Credit. The High Court judgment in 2020 upheld the policy of treating Statutory Maternity Pay paid by employers as earnings as well as the treatment of Maternity Allowance.