The Neonatal Care (Leave and Pay) Act 2023, which is set to take effect on 6 April 2025, introduces a significant new entitlement for employed parents. This Act provides parents with dedicated neonatal care leave and pay, ensuring they have the necessary time to care for their newborns requiring hospital treatment in their earliest days.
Who is Eligible?
The new entitlement applies to employed parents whose babies:
- Are admitted to neonatal care within the first 28 days of life.
- Remain in hospital for at least 7 consecutive days.
- Are born on or after 6 April 2025.
What Does This Mean for Parents?
Eligible parents will be entitled to take up to 12 weeks of neonatal care leave, in addition to existing entitlements such as maternity or paternity leave.
- Day-one right: Employees will qualify for neonatal care leave from their first day of employment.
- Flexibility: Leave can be taken in weekly blocks for each full week the baby remains in hospital, up to a total of 12 weeks.
- Timeframe: The leave must be taken within 68 weeks of the baby’s birth.
Neonatal Care Pay (NCP)
Parents who meet specific eligibility criteria may also qualify for Statutory Neonatal Care Pay (NCP). To be eligible for NCP, an employee must:
- Have been employed for at least 26 weeks before taking the leave.
- Have normal weekly earnings over the relevant eight-week period that meet or exceed the lower earnings limit (£125 per week from April 2025).
The ‘relevant week’ will usually be the 15th week before the expected week of childbirth.
How Much Will Be Paid?
Statutory NCP will be paid at £187.18 per week from April 2025 or 90% of average weekly earnings if this is lower.
Employers should prepare for these changes by:
- Reviewing and updating parental leave policies to incorporate neonatal care leave and pay provisions.
- Ensuring HR and payroll teams understand the eligibility and pay criteria.
- Providing clear communication to employees about their new rights under this legislation.
The Neonatal Care (Leave and Pay) Act 2023 is a crucial step in supporting working parents during a challenging time. Employers should take proactive steps to ensure compliance and support their employees effectively.
For further guidance on implementing these changes, contact our HR consultancy team today.
