Neonatal Care Leave and Pay Updates in the UK
What is the Neonatal Care (Leave and Pay) Act 2023?
The Neonatal Care (Leave and Pay) Act 2023 is a significant law designed to assist employed mothers, fathers or partners whose infants require specialised hospital treatment soon after birth. It was passed in 2023 and is coming into force in April 2025. The act ensures that if a newborn is taken to a neonatal facility within the first 28 days and must stay there for seven consecutive days or more, parents may claim as many as 12 extra weeks of leave. This measure spares families from choosing between urgent childcare and sustaining their jobs, easing stress for everyone involved.
Looking after a premature or very sick baby can be exhausting, both emotionally and physically. Parents frequently cope with hospital rounds, consultations with specialists and restless nights. Before this legislation, many people had to deplete their annual leave or face unpaid time away, which made an already tough situation worse. By granting eligible parents both leave and pay, the government underscores how vital family presence is for an unwell infant’s initial phase of recovery. Studies have indicated that having caregivers close by helps speed healing and promotes a stronger parent-child relationship.
Why Has This Legislation Been Introduced?
In contemporary life, numerous families depend on dual incomes to get by. If a newborn arrives prematurely or with severe health difficulties, mothers and fathers might abruptly need extended hospital stays. Previously, they had limited choices: give up their job and income or keep working under the stress of a child’s fragile condition.
The government established this law so parents could care for a hospitalised infant without sacrificing financial security or worrying about their employment status. It also aligns the UK more closely with countries like Sweden and Norway that provide longer parental support. By allowing parents to concentrate on a baby’s wellbeing during critical moments, society and businesses ultimately gain. People who receive adequate support tend to resume work feeling motivated, appreciated and ready to contribute.
2025 Updates
Although it was passed in 2023, these new protections officially go into effect on 6 April 2025. From that date, workers meeting specific requirements can request neonatal care leave and pay. Employers would be wise to use the interim period to align their policies and payroll processes with this upcoming system. Human resources teams, managers and leaders also benefit from training, ensuring that leave requests receive both clarity and compassion.
Even though the legislation itself remains unaltered, it might meaningfully affect daily operations in many workplaces. Smaller businesses or SMEs could feel a greater impact if someone needs a prolonged absence, yet having advance notice grants them an opportunity to plan. Clear communication and staying informed empower both workers and companies to move forward confidently.
Who is Eligible for Neonatal Leave and Pay?
Neonatal Leave Eligibility (NCL)
A baby has to be admitted to a neonatal unit within 28 days of birth and remain there for at least seven continuous days.
Biological parents, adoptive parents, surrogates and partners of the birth mother all qualify.
No minimum service period is required, meaning employees are eligible for neonatal leave starting on day one of employment.
This leave can be taken in one continuous block or split into segments, up to a limit of 12 weeks.
Parents have up to 68 weeks from the child’s birth to use it, so they do not have to start immediately after other leave periods end.
Neonatal Pay Eligibility (NCP)
Employees must have served the same employer for at least 26 weeks.
Their earnings must exceed the current Lower Earnings Limit of £123 weekly.
If they meet the criteria, employees receive £187.18 per week or 90% of average weekly earnings, whichever is lower.
Employers can claim back a substantial portion of these payments from HMRC, as is done with standard maternity or paternity pay.
Neonatal Care (Leave and Pay) Act Details
How Much Notice is Required?
Employees must give a fair amount of notice for neonatal leave, but businesses should remember that hospital admissions for newborns are often sudden. A caring policy that spells out any necessary documents (like medical confirmation) reduces confusion and supports families through a difficult time.
How Much Leave is Available?
Under this legislation, parents can take as many as 12 extra weeks of neonatal care leave in addition to whatever maternity, paternity, adoption or shared parental leave they already received. This setup ensures that if caregivers have fully used the usual leave around the birth, they still have further time for a newborn in hospital.
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The Impact on Small Businesses and SMEs
Small and medium-sized businesses are often hit harder by a single worker being absent, compared to larger companies with more staff. Nonetheless, developing a clear and supportive structure for neonatal care can significantly increase loyalty and morale. Showing genuine concern for families at such a sensitive juncture typically strengthens retention and fosters a positive workplace. People come back from leave feeling thankful, engaged and ready to give their best, which can be highly beneficial for a smaller enterprise.
Although staffing or payroll processes might need to be reconsidered, employers can reclaim most statutory payments from HMRC. Small operations that think ahead and communicate these changes effectively frequently discover that short-term difficulties are compensated for by long-term increases in satisfaction and productivity.
A Real World Example
Consider a designer named Sarah, newly employed at a boutique creative firm when she unexpectedly has a premature birth. Her infant needs critical care, demanding she spend nearly all her time at the hospital. Previously, Sarah might have had to quit or go without pay. Now, under the Neonatal Care (Leave and Pay) Act, she remains employed and receives pay while focusing on her hospitalised child. Though the studio must adapt while she’s gone, they retain a skilled designer who returns feeling that her employer supported her through a crisis. That reassurance often translates to higher morale and commitment.
Steps to prepare for the Neonatal Care (Leave and Pay) Act
Update Employee Handbooks and Contracts
Incorporate these new provisions so every team member knows precisely what they can expect.
Develop a Dedicated Neonatal Care Policy
Rather than merely adding a quick note to current parental leave guidelines, develop a distinct policy that covers neonatal care and pay. It makes crucial details easier to locate and understand.
Update Family Friendly Policies
Revisit existing maternity, paternity, adoption or shared parental leave plans so they integrate smoothly with neonatal entitlements. Consistency reflects a true dedication to supporting parents.
Train Managers and Leaders
Equip supervisors, business owners, HR staff and senior teams with comprehensive knowledge of the rules so they can respond compassionately and decisively. This is especially vital in smaller firms where leaders are a frequent first point of contact.
Raise Awareness Within the Business
Distribute emails or host internal sessions that highlight these new rights. Early communication helps avert future concerns and lets people plan ahead.
Review Payroll Systems
Collaborate with finance or external payroll providers to process neonatal pay properly. Since you can recover a large fraction of these costs from HMRC, accurate tracking is essential.
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How Breen and Associates Can Support Your Business
Breen and Associates - Results Through People offers expert help to businesses of varying sizes, guiding them through shifting employment legislation. We understand that laws like the Neonatal Care (Leave and Pay) Act may bring up questions around scheduling, remuneration and resource planning, particularly for smaller companies.
Here’re just some of the service you can access when you work with us:
Policy Updates
We’ll show you how to fit neonatal care rights into your existing documents or build a standalone plan that is straightforward. Both options are available.
Manager Training
We tailor sessions that help managers handle sensitive requests with empathy and explain entitlements clearly.
Payroll and Administrative Guidance
We advise on optimal ways to structure payroll and on efficiently claiming funds back from HMRC, so you remain compliant without extra hassle.
Ongoing HR Support
From expert tips on family-oriented policies to frequent alerts about new rules, our holistic service empowers you to maintain a positive and productive environment.
Adapting to new legislation is much more than a simple formality. It’s a chance to prove that you value employees, particularly when challenges arise. By embracing the Neonatal Care (Leave and Pay) Act, you lay the groundwork for a caring culture that can lead to a committed, energetic team.
If you would like expert help on preparing for this new legislation, get in touch. Together, we can ensure that your business is fully equipped to meet every requirement and provide the crucial support your staff deserve.
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Written by Joanna Breen
Joanna Breen, co-founder of Breen & Associates - Results Through People, is a highly accomplished HR and business leader with over 25 years of experience. As a Fellow Chartered Member of the CIPD (FCIPD), she has excelled in HR strategy, operation and transformational change across diverse industries. Joanna is also a seasoned Corporate and Executive Coach, with over 20 years of experience helping leaders achieve their full potential. With a proven track record advising at board level, she blends strategic expertise with a passion for developing people and driving business success.
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