What are the new rules surrounding neonatal care leave and pay?

From 6 April 2025, new regulations will come into force granting parents of babies in neonatal care the right to take up to 12 weeks of leave and statutory pay.

This landmark change, introduced through the Neonatal Care (Leave and Pay) Act 2023, will benefit an estimated 60,000 parents annually and forms part of broader reforms under the Government’s Employment Rights Bill.

What are the new entitlements?

Under the new rules, neonatal care leave and pay will apply to parents of babies:

• Admitted into neonatal care within the first 28 days of life
• Who remain in hospital for a continuous period of seven full days or longer

Key details include:

• Additional leave – Eligible parents can take up to 12 weeks of neonatal care leave, which is added on top of any existing entitlements, such as maternity, paternity, or shared parental leave.
• Statutory pay – Statutory neonatal pay will be £187.18 per week or 90 per cent of the employee’s normal weekly earnings (whichever is lower) for 2025/26.

This new entitlement will be available across England, Wales, Scotland, and Northern Ireland and will be a day one right for employees.

Eligibility for statutory neonatal pay

While neonatal care leave will be a day one right, statutory neonatal care pay will only be available to employees who meet the following criteria:

• Continuity of service – Employees must have worked for their employer for a set minimum period.
• Earnings threshold – Employees must earn at least £125 per week to qualify.

Implications for employers

The introduction of neonatal care leave and pay has significant implications for employers. Here’s what you need to consider:

Update HR policies – Review and update your leave and pay policies to include neonatal care leave and pay entitlements. Ensure these updates are clearly communicated to all employees.

Payroll adjustments – Prepare your payroll systems to handle statutory neonatal pay. This includes implementing the correct pay rates and ensuring compliance with continuity of service and earnings threshold requirements.

Flexible workforce planning – With up to 12 additional weeks of leave now available to some employees, it is essential to plan for potential staffing gaps. Develop strategies to ensure business continuity, such as flexible working arrangements or temporary cover.

Support for employees – Parents with babies in neonatal care are likely to experience significant stress. Providing clear information about their entitlements and offering additional support, such as counselling services or flexible working arrangements, can make a meaningful difference.

A step towards supporting families

This new entitlement is a big step forward in supporting working parents during one of the most challenging times of their lives.

As an employer, understanding and implementing these new measures will not only ensure compliance but also demonstrate your commitment to supporting your workforce.