Money saving tips for new parents UK: managing the cost of a baby

Many new parents miss out on benefits they're fully entitled to. Claim Child Benefit as soon as your baby is born, even if you'll pay the High Income Child Benefit Tax Charge, claiming protects your NI record. The Sure Start Maternity Grant is a one-off £500 payment, usually for your first child, if you get certain means-tested benefits (Scotland has the Best Start Grant instead). Free prescriptions and NHS dental treatment are available throughout pregnancy and for 12 months after your baby is born, get your maternity exemption certificate (MatEx) from your midwife. Check eligibility for Universal Credit if combined household income drops significantly during parental leave. The Healthy Start scheme provides a prepaid card for milk, fruit and vegetables, plus free vitamins, for eligible pregnant women and families with children under 4.

Statutory Maternity Pay (SMP) pays 90% of average weekly earnings for the first 6 weeks, then £194.32/week in 2026/27 (or 90% of average earnings if lower) for the next 33 weeks. This is significantly less than full pay for most workers. Many employers offer enhanced maternity pay (often 3–6 months at full or partial salary), check your contract carefully. Statutory Paternity Pay is £194.32/week (or 90% of earnings if lower) for up to 2 weeks. Shared Parental Leave (SPL) allows mothers and partners to share up to 50 weeks of leave and 37 weeks of pay between them, more flexible than it's often used. Self-employed women may claim Maternity Allowance (up to £194.32/week for up to 39 weeks) based on their National Insurance record.

Baby equipment depreciates rapidly, and most items are used for just 6–18 months. A new cot can cost £200+; a secondhand one in excellent condition is £30–60 on Facebook Marketplace or local charity shops. The same applies to: bouncers, play gyms, nursing pillows, high chairs, and many clothing items. Safety note: the exceptions to buying secondhand are car seats (which may have hidden damage from accidents) and mattresses (for hygiene/SIDS risk reasons, always buy new). Baby clothing: buy the next size up rather than current, as babies grow quickly. Accept hand-me-downs from friends and family enthusiastically. The NCT nearly new sales in your area are excellent for quality items at low prices.

Childcare costs are one of the biggest financial shocks for new parents, and prices vary hugely by area, so get quotes from local nurseries and childminders early. In England, all 3- and 4-year-olds get 15 free hours a week, and since September 2025 eligible working parents can get 30 free hours a week from when their child is 9 months old until they start school. Some 2-year-olds in lower-income families also get 15 free hours. Scotland, Wales and Northern Ireland have their own schemes. Tax-Free Childcare (TFC) allows working parents to get 20% off childcare costs, the government adds 20p for every 80p you pay in, up to £500 every 3 months (£2,000/year, or £4,000 for disabled children). TFC is available for children under 12. Always apply for TFC through the government's childcare account before paying your provider, it's free money.