Consumer rights explained: I’m pregnant and worried about how we can afford unpaid leave

Q: I have recently found out I am pregnant with our first child, which is wonderful news, but my partner and I are becoming increasingly anxious about how to financially prepare for maternity leave. My child cannot start crèche until they are one year old, so I want to know if there is anything we can do now to prepare for a period of unpaid leave. My employer pays my full salary for the first six months of maternity leave. 

Amelia, Westmeath

First of all, congratulations on your wonderful news. Preparing to welcome your first child is an exciting time, but it is also one of life's biggest financial transitions. It's completely natural to feel anxious about managing on a reduced income, particularly with future childcare costs to consider. The good news is that by understanding your entitlements and planning ahead now, you can make the transition much more manageable.

Let's start with your entitlements. During maternity leave, employers are not legally required to continue paying your salary. However, most employees who meet the qualifying conditions can claim State Maternity Benefit, which is currently €299 per week for up to 26 weeks. Many employers choose to top up this payment by continuing to pay some or all of your normal salary. You are in a particularly fortunate position, as your employer pays your full salary for the first six months of your maternity leave. This means you'll receive your normal income during that period rather than relying solely on the State payment.

You will also continue to build up annual leave and public holiday entitlements while on maternity leave. Many employees take this paid leave immediately afterwards, giving them several more weeks on full pay. 

In addition, each parent is entitled to nine weeks of parent's leave during the first two years of a child's life, with Parent's Benefit currently paid at €299 per week by the State. Depending on your family's circumstances, your partner may also qualify for two weeks of paternity leave. During this time, they can receive Paternity Benefit (currently a standard payment of €299 per week). Some employers top up this payment to an employee's normal salary. Making full use of these supports can help ease the financial pressure during your baby's first year. You can get more details from MyWelfare.ie.

Even with these supports, you may still face a period on a reduced income before your child starts crèche. Now is a good time to review your household budget. Identify your essential monthly costs, such as your mortgage or rent, utilities, insurance and groceries. The CCPC's online budget planner can help you understand where your money is going.

Once you've identified your essential spending, look for areas where savings may be possible without putting unnecessary pressure on your household. For example, you could compare and switch electricity, gas, broadband or mobile phone providers, review your insurance policies or pause subscriptions you may not need for a few months. Small savings across several bills can help build a financial buffer before your baby arrives.

If you're concerned about keeping up with your mortgage repayments, contact your lender as early as possible to discuss the supports they offer. This could include a moratorium (where repayments are temporarily paused), interest-only repayments or other temporary arrangements. A full payment break should generally be considered a last resort, as interest will usually continue to accrue and you'll end up paying more over the life of your mortgage. Before making a decision, make sure you understand how each option will affect your future repayments and the overall cost of your mortgage.

Finally, if you'd like additional guidance, the CCPC's free Baby Steps booklet offers practical financial advice for expectant parents. Preparing for maternity leave is about understanding your options, planning ahead and creating a realistic budget. Taking these steps now can help reduce financial stress and allow you to focus on enjoying this exciting new chapter.