The government has confirmed that Neonatal Care Leave and Pay will almost certainly come into force from 06 April 2025, providing crucial support to parents of babies in neonatal care.

What is changing?

Under the new law, eligible parents will be entitled to up to 12 weeks of additional leave if their baby is admitted to neonatal care within 28 days of birth and remains in hospital for at least 7 full days. This leave is in addition to maternity, paternity, or Shared Parental Leave.

Employees will have a day-one right to take this leave, and those who meet continuity of service and earnings thresholds will also be entitled to Statutory Neonatal Care Pay.

What does this mean for employers?

While the number of staff affected may be small, businesses will need to update their policies and ensure managers understand the new entitlements. Employers offering enhanced maternity or paternity pay should consider whether they will align Neonatal Care Pay with their existing benefits.

Shared Parental Leave (SPL) has been in place for nearly a decade, offering parents greater flexibility in caring for their child during the first year after birth or adoption. However, uptake remains low, with only around 5% of eligible parents using it.

SPL allows parents to split up to 50 weeks of leave and 37 weeks of statutory pay, but eligibility criteria and application processes can be complex. Employers must be aware of their obligations, particularly around managing requests and potential policy updates.

With a government review now underway, changes could be on the horizon.