Maternity pay boost for mothers

The ruling could mean more money for pregnant women

A landmark European ruling could boost maternity pay for thousands of women in the UK.

The European Court of Justice has ruled that pay rises received before the end of maternity leave must be honoured.

Under current rules, maternity pay is based on earnings in the fifth and sixth months of pregnancy - and any subsequent pay rises are ignored.

The Department for Work and Pensions said it was considering the implications of the decision.

One-woman battle

The case relates to an eight-year battle by Michelle Alabaster against the Woolwich, now part of Barclays.

Ms Alabaster, an administrator at the former building society, had her earnings-related statutory maternity pay calculated in the traditional way.

We are delighted with this 'common-sense' decision Julie Mellor, Equal Opportunities Commission

The award was based on earnings in the fifth and sixth months of her pregnancy, between 1 September and 31 October 1995.

In December that year she received a pay increase of over 10%.

However, this increase was not reflected in her maternity pay because the award was given after the cut off point.

The European Court of Justice, however, ruled the pay rise should have been reflected in her maternity pay.

Ms Alabaster's case was supported by the Equal Opportunities Commission (EOC).

Julie Mellor, EOC chair, said: "We are delighted with this 'common-sense' decision which means that Statutory Maternity Pay must reflect what a woman would have earned had she not been on maternity leave."

Employment tribunals will now be required to consider the ruling when they decide similar pay cases.

The EOC urged the government to "take action" and update UK legislation in line with the ruling.