The Financial Strain on Self-Employed Mothers: Delays in Maternity Pay and Mortgage Barriers
Self-employed mothers across the UK are grappling with prolonged waits for statutory maternity pay and significant obstacles in securing mortgages, exposing flaws in government systems and lending practices. For freelancers and business owners, the journey to parenthood often becomes a financial nightmare, with bureaucratic delays and income fluctuations creating overwhelming stress.
Delayed Payments and HMRC Backlogs
Harriett Thompson, a freelance makeup artist, began her maternity leave in early 2025 but waited over a year to receive her statutory maternity pay (SMP). She finally received a cheque in April this year after numerous calls to HM Revenue and Customs (HMRC), who cited backlog issues. Thompson's case is not isolated; many self-employed mothers report similar experiences, with some waiting up to three years for payments.
Alex Tinney, founder of Flex Pilates, received her maternity pay only on her return to work, forcing her to use company savings to cover expenses. "I had to save up before going on maternity to cover my mortgage and bills," Tinney explained. "Luckily, the company is in a position to do that, but that wouldn't be the case for everyone."
Richard Douglas of Oakworth Financial Planning notes that HMRC systems are designed for traditional employer-employee relationships. "The issue for these women is that they are the owner and staff," he says. "Once it becomes manual, timescales are almost impossible to predict due to a lack of processing staff."
Mortgage Challenges for Self-Employed Parents
Obtaining a mortgage while self-employed and on maternity leave presents additional hurdles. Lenders typically average the last two years of income, and any drop—even due to maternity leave—reduces borrowing capacity. Brad Clarke of Atkins Financial Solutions states, "If your income has dropped, regardless of whether it's due to maternity leave, your affordability drops."
Rachael Twumasi-Corson, a self-employed consultant, took three years to secure a mortgage after having children. "We had to put down a larger deposit of 15% and use a specialist broker," she recalls. Tinney describes her mortgage process as "an absolute nightmare," requiring extensive documentation compared to her employed partner's simpler requirements.
Inadequate Support and Systemic Issues
Self-employed mothers often receive less financial support than employees. Catherine Goldfinger of Milk & Money points out that maternity allowance lacks the six-week average earnings uplift, resulting in significant income loss. Additionally, the limited "keeping in touch" days force many to return to work prematurely.
Saskia Hawkins, an acupuncturist, cut short her maternity leave because allowance payments didn't cover costs. "When I returned to work, I effectively had to rebuild my business from scratch," she says. Katie Guild of Nugget Savings adds that most female founders take only three to six months off, fearing business collapse.
HMRC Response and Ongoing Problems
HMRC has apologized to Thompson and acknowledged delays, attributing them to high claim volumes. A spokesperson said, "We're allocating more staff to help reduce wait times." However, Thompson reports continued issues, with payments still pending for the 2025-26 tax year.
Selina Flavius of Black Girl Finance criticizes HMRC's "clunky" systems, noting that many business owners receive erroneous debt letters. "For director-owners, the process is awkward, slow and prone to HMRC's systems getting confused," she explains.
Broader Implications and International Comparisons
The UK's support for self-employed parents lags behind many EU countries. Alex Lloyd Hunter of The Dad Shift highlights that self-employed fathers receive no paternity pay in the UK, unlike in nations like Spain and Sweden, where generous leave policies exist. This disparity affects mortgage affordability, as income drops are less severe in countries with better parental support.
Elinor Birkenhead-Jones, a freelance set decorator, opted for her partner to take paternity leave instead of claiming maternity allowance. "It isn't enough to live on," she says, emphasizing the financial strain. Her experience underscores the need for systemic reform to support self-employed families through life's major milestones.
