Explanatory note

These Regulations amend the Statutory Maternity Pay (General) Regulations 1986 (“the principal Regulations”).

Regulation 2 amends regulation 21 of the principal Regulations to include in the calculation of normal weekly earnings any sum payable in respect of a relevant period by virtue of a back-dated pay increase received after that period.

Regulation 3 inserts a new regulation 21B, into the principal Regulations. This regulation provides that, where a woman is receiving maternity allowance and entitled to statutory maternity pay due to receiving a back-dated pay increase, her employer is only liable to pay statutory maternity pay of an amount by which the rate of statutory maternity pay exceeds the rate of maternity allowance received by her.

The effect of regulations 2 and 3 will be to increase costs to business. An assessment of the costs to business of applying these regulations has been placed in the Libraries of both Houses of Parliament. Copies can be obtained by post from the Department of Social Security, Deregulation Unit, 11th Floor, Adelphi, 1-11 John Adam Street, London WC2N 6HT.