From April 2025, the Neonatal Care (Leave and Pay) Act 2023 will give working parents greater support when their newborns need specialist medical care, with up to 12 weeks of additional leave and statutory pay. This ensures parents can be there for their baby without the added worry of work or finances.
For employers, this change isn’t just about compliance—it’s an opportunity to create a more supportive and family-friendly workplace. Understanding the details of neonatal care leave, updating policies, and preparing payroll systems will be key steps in getting ready.
This guide outlines what the Neonatal Care (Leave and Pay) Act 2023 covers and how employers can prepare.
From 6th April 2025 families in the UK will have greater access to support with the introduction of the Neonatal Care (Leave and Pay) Act 2023. This marks a significant step forward in supporting families during some of the most challenging times as research shows one in seven UK newborns need to be placed in a specialist hospital unit.
It’s important employers understand and prepare for these changes, to remain compliant and offer meaningful support to employees.
What is Neonatal Care?
When a child receives any of the following types of care, they are considered to have been in neonatal care:
(a) medical care in a hospital;
(b) Palliative or end-of-life care
(c) Outreach care, which meets the following conditions:
(i) the care is provided under the direction of a consultant doctor; and
(ii) the care includes ongoing monitoring by, and visits to the child from, healthcare professionals arranged by the hospital.
What is the Neonatal Care (Leave and Pay) Act?
The Neonatal Care (Leave and Pay) Act introduces statutory leave and pay entitlements for parents or caregivers of babies who require neonatal care. This law acknowledges the emotional and financial stress that families face when a newborn requires extended medical treatment.
Why is this Change Significant?
Before this legislation, many parents relied on informal arrangements or unpaid leave to manage these situations. The Act provides a safety net, ensuring that parents can care for their newborns without jeopardising their employment or financial stability. It also signals a broader commitment to family-friendly workplace policies.
Under the Act:
Leave Entitlement – Parents will be entitled to up to 12 weeks of neonatal care leave in addition to their existing maternity, paternity, or shared parental leave. This applies to parents of babies who spend at least seven consecutive days in neonatal care within the 28 days from their birth. Statutory Neonatal Care Leave (SNCL) will be a day one right for employees, available regardless of their length of service. Leave must be taken within 68 weeks of the baby’s birth.
Pay Entitlement – Eligible parents earning above the Lower Earnings Limit will receive Statutory Neonatal Care Pay (SNCP). The rate is set at the same rate as statutory paternity and shared parental pay. Find out the current statutory pay here. To qualify for statutory pay during this leave, employees must have been continuously employed for at least 26 weeks.
Caroline Lee-Davey, Chief Executive of Bliss, UK’s leading charity for babies born premature and sick, said:
“This will make a huge difference to around 60,000 parents every year, and to their babies. It will relieve the additional stress of having to juggle looking after a critically ill baby in hospital with work, ease some of the financial pressure and, by allowing parents to be more involved in their baby’s care, improve the health outcomes of premature and sick babies.”
How can employers support their employees?
There are a few things to consider ahead of the April 2025 changes.
- Review current parental leave policies to ensure the updates to neonatal care (leave and pay) are reflected in policies.
- Communicate with employees what their rights are and the changes to policies ahead of time. Employees should be aware of their protections before they may need to use them.
- Empathy and flexibility – Employers should understand that employees needing to use this leave will be under a lot of intense stress and employers should, where possible, be open to flexible working arrangements, this could be in the form of home working or hybrid arrangements and flexing of hours. Approach situations with sensitivity and empathy, Head of Policy and Influencing at Working Families, Simon Kelleher suggests that “A bit of understanding from managers goes a long way. Giving people space but also letting them know you’re there when they’re ready is so important, and that doesn’t cost anything.”.
- Training – Where required employers should update training for HR teams and managers to confirm all those who will be involved in communicating and managing the policies and procedures with employees affected understand them fully.
- Payroll adjustments – Payroll systems must be updated to process statutory neonatal care pay correctly.
Conclusion
The Neonatal Care (Leave and Pay) Act is a huge development in parental rights, emphasising the importance of supporting families during critical times. For employers, the Act presents an opportunity to strengthen workplace culture by prioritising empathy and care.
By understanding the requirements and preparing accordingly, employers can ensure a smooth transition while fostering a supportive environment for their employees. As April 2025 fast approaches, it’s paramount employers get ready for the change, aligning policies and practices and making sure to communicate with employees.
Sources
Baby steps: Neonatal care leave and pay
Statistics about neonatal care | Bliss
New Parental Rights in the UK 2025: Neonatal Care (Leave and Pay) Act 2023 – Employee Handbook Template UK 2024
Paid leave for premature births aims to be a relief for parents – BBC News