Plan 5 During Maternity Leave: What Happens to Your Repayment
Last reviewed: 2026-09-20 · By Student Loan Calculator UK Editorial Team · Reviewed by Student Loan Calculator UK Editorial Team
Quick answer: Plan 5 deductions stop automatically when your monthly pay drops below £2,083 (the monthly equivalent of the £25,000 annual threshold). For most UK employees on Statutory Maternity Pay or Statutory Adoption Pay, this happens after the first 6 weeks of enhanced rate ends. The 40-year write-off clock keeps ticking regardless of leave.
How Plan 5 deductions work during maternity leave
Plan 5 is assessed on each PAYE pay period independently — not annually. This is critical to understand for maternity leave, when monthly income can swing from full salary to statutory minimum to zero across a single tax year. The mechanics:
- Each month, your employer compares gross pay to £2,083 (2026-27).
- If gross pay exceeds £2,083, Plan 5 deducts 9% of the excess.
- If gross pay is at or below £2,083, the deduction is £0 for that month — even if previous months had high earnings.
Plan 5 facts at a glance
- Threshold (2026-27): £25,000/year (£2,083/month)
- Rate: 9% of income above threshold (per pay period)
- Interest: RPI only, with no margin during or after study. First repayments became due in April 2026. — continues to accrue during leave
- Write-off: 40 years from the April following course end — unaffected by leave
UK statutory maternity pay 2026-27 at a glance
- Weeks 1-6: 90% of average weekly earnings (no upper cap)
- Weeks 7-39: £194.32/week or 90% of earnings, whichever is lower
- Weeks 40-52: Unpaid (unless employer offers enhanced terms)
Annualised, £194.32/week is approximately £10,105/year — far below the £25,000 Plan 5 threshold. Translated to monthly: roughly £811/month, also well below the £2,083 monthly threshold.
Worked example 1: standard statutory maternity pay
Salaried graduate normally earns £42,000 (gross monthly £3,500). She takes 52 weeks maternity leave with only statutory pay:
| Maternity phase | Monthly gross | Plan 5 deduction |
|---|---|---|
| 6 weeks at 90% pay (£3,000/month equivalent) | £3,000 | £83 |
| Statutory rate £194.32/week (≈£842/month) | £842 | £0 (below threshold) |
| Unpaid leave (months 10-12) | £0 | £0 (below threshold) |
During the first 6 weeks at 90% pay, deductions continue normally. From week 7 onwards at statutory rate, Plan 5 deductions stop entirely until she returns to work.
Worked example 2: enhanced employer maternity pay
A graduate on £48,000 (gross monthly £4,000) at an employer offering full pay for 6 months, then statutory rate for 3 months, then unpaid:
- Months 1-6 (full pay £4,000): Plan 5 deduction = (£4,000 − £2,083) × 9% = £172.50/month
- Months 7-9 (£812 statutory): Plan 5 deduction = £0
- Months 10-12 (unpaid): Plan 5 deduction = £0
- Total Plan 5 paid during leave year: £172.50 × 6 = £1,035
Compared to her pre-leave annual deduction of £2,070, she saves £1,035 in Plan 5 contributions during the leave year. Note that interest continues to accrue at RPI on her outstanding balance.
What happens to your Plan 5 balance during leave?
The balance continues accruing RPI interest (4.1% (RPI March 2026)) throughout maternity leave. On a £40,000 balance, that's roughly £1,280 of interest in a 12-month leave year. For most Plan 5 borrowers — particularly those unlikely to clear the loan before write-off — this is not financially relevant. See our Plan 5 for low earners page for why balance growth doesn't matter if you won't repay in full.
Returning to work after maternity leave
Plan 5 deductions resume automatically the first pay period your gross monthly pay exceeds £2,083. There is nothing to declare to HMRC, the Student Loans Company, or your employer. Two specific scenarios to plan for:
- Returning part-time: If your reduced-hours salary stays below £25,000 annual equivalent, Plan 5 deductions remain at £0. Many returning parents negotiate 3- or 4-day weeks that fall below the threshold.
- Bonus or back-pay on return: Any lump sum paid in your first pay period back can trigger a one-off Plan 5 deduction if it pushes monthly pay above £2,083. This is normal and not reclaimable unless your total annual earnings stay below £25,000.
Reclaiming Plan 5 overpayments after the tax year
If your total annual earnings across the tax year fell below £25,000 but you had monthly deductions because some months breached £2,083, you can request a refund from the Student Loans Company after the tax year ends (after 5 April). Steps:
- Wait until your final payslip for the tax year is issued.
- Gather your P60 showing total annual gross pay and total student loan deductions.
- Contact the Student Loans Company online or by phone with your P60 figures and bank details.
- Refunds are typically processed within 4-6 weeks of request.
Parental leave for the other parent
Statutory Paternity Pay (two weeks at the statutory rate, £194.32/week in 2026-27) and Shared Parental Pay follow the same Plan 5 mechanics: monthly pay below £2,083 means no deduction. Adoption Pay (SAP) is paid at the same rates as SMP and is treated identically for Plan 5 purposes.
Plan 5 + postgraduate loan during maternity
If you have both Plan 5 and a Postgraduate Loan, each is assessed against its own monthly threshold independently. The Postgraduate Loan threshold is £1,750/month (£21,000/year), lower than Plan 5. During statutory pay months, both deductions stop. During enhanced employer pay months, both may continue. See Plan 5 + postgraduate loan stacking for full mechanics.
Related Plan 5 guides
- Plan 5 student loans: complete guide
- Monthly student loan repayment calculator
- Plan 5 optimisation guide
- Plan 5 for low earners
- Plan 5 + postgraduate loan stacking
Frequently asked questions
Do I pay Plan 5 during Statutory Maternity Pay?
Almost never. Statutory Maternity Pay (SMP) in 2026-27 is 90% of average weekly earnings for the first six weeks, then £194.32/week (or 90% of earnings if lower) for 33 weeks. This translates to an annualised income well below the £25,000 Plan 5 threshold, so deductions stop automatically.
What about enhanced employer maternity pay?
If your employer pays enhanced maternity pay (for example, full pay for 6 months), Plan 5 deductions continue at 9% of income above the monthly threshold (£2,083 in 2026-27) for as long as your monthly pay stays above it. Deductions stop the month your pay drops below £2,083.
How are Plan 5 deductions calculated month-to-month during maternity?
Plan 5 deductions are assessed on each individual pay period, not annually. If you earn £3,500 in March (full pay) and £812 in April (SMP), April will have a zero deduction even though March did not. HMRC does not annualise or smooth student loan deductions across months.
Can I reclaim Plan 5 overpayments at the end of the tax year?
Yes — but only if your total annual income across the full tax year fell below £25,000. If your March-to-April earnings totalled, say, £22,000 because of unpaid maternity leave, contact the Student Loans Company in writing after the tax year ends to request a refund of any deductions taken in months you were above the monthly threshold.
Do Keeping In Touch (KIT) days affect Plan 5 deductions?
KIT day pay is treated as regular earnings in the pay period it is paid. If KIT pay pushes your monthly total above £2,083, Plan 5 will deduct 9% of the excess. Most KIT days do not breach the threshold on their own, but combined with statutory pay they sometimes do.
Does maternity leave extend my Plan 5 write-off date?
No. The 40-year write-off term starts running from the April after you became liable to repay (typically the April after course completion) and is unaffected by career breaks, maternity leave, or unemployment.
What if I take Shared Parental Leave instead of maternity leave?
Shared Parental Pay (ShPP) is paid at the same statutory rate as SMP (£194.32/week in 2026-27). The Plan 5 treatment is identical: deductions stop when monthly pay drops below the £2,083 threshold and resume when it rises above.
I have Plan 5 plus a postgraduate loan — what happens during maternity?
Both stop independently when income drops below their respective thresholds. Plan 5 deductions stop below £2,083/month. Postgraduate Loan deductions stop below £1,750/month (£21,000/year threshold). Both resume independently when monthly pay crosses the relevant threshold. See our Plan 5 + postgraduate loan stacking guide.
Do I need to tell the Student Loans Company about my maternity leave?
No proactive notification is required. Your employer's PAYE submissions automatically reflect reduced earnings, and HMRC passes this to the Student Loans Company at year end. You only need to contact SLC if you want to request a refund of in-year deductions after the tax year ends.
Sources: Department for Education — Plan 5 loans; Plan 5 repayment terms — gov.uk. Statutory rates: gov.uk – Statutory Maternity Pay.