The UK has taken a further step in family-friendly workplace policies with the introduction of neonatal leave and pay. This new legal entitlement is designed to support parents whose newborns require specialist care in the early days after birth. By providing up to 12 weeks of additional leave and statutory pay, the policy aims to ease the emotional and financial pressures that families face during this critical time.  

Neonatal care to date

Currently, parents of newborn babies requiring neonatal care (NCL) have only the standard types of statutory family-related leave (such as maternity and paternity) to rely on. This means a significant portion of this leave, designed for parents to build bonds with their baby and adjust to their new family, is spent in a hospital or other medical facility.  

It’s reported that in cases where a baby is in neonatal care for more than two weeks, around 35% of those taking paternity leave are signed off sick. There’s also evidence that mothers have had to leave their jobs at the end of their maternity leave because they were not ready to return to work.  

What’s changing?

From 6 April 2025, parents of babies requiring neonatal care, born on or after this date will be able to take up to 12 weeks of leave in addition to their other family leave entitlement.  

Neonatal care is defined as medical care:

• in a hospital (including a maternity home, clinic or outpatient department);

• in another place to which the child is moved on leaving hospital (provided the care is under the direction of a consultant and includes ongoing monitoring by and visits from healthcare professionals arranged by that hospital);

• palliative or end-of-life care.   

Parents will be entitled to one week’s leave for every week their child spends in neonatal care – up to a maximum of 12 weeks.  

‍What does the legislation say?

Statutory NCL is a day-one employment right. Parents will be eligible to add NCL to their other family leave entitlement where their newborn has been admitted for neonatal care within 28 days of birth, and their care admission lasts for at least 7 days. Leave can either begin before or after other leave entitlement, so long as it is taken within 68 weeks from birth.  If a parent decides to take NCL during the period of time that their child is receiving care, or the 7 days following discharge from care (“tier 1”), leave can be taken in non-consecutive blocks. If the time is tagged on to the end of other leave entitlement (“tier 2”), it must be taken in consecutive blocks.  Where a parent decides to take Tier 1 NCL they must provide notice within 28 days from the first day of the NCL period. For Tier 2, the following notice periods apply:

• A single week of NCL – 15 days before the first day of leave; or

• For two or more weeks of NCL – 28 days before the first day of leave.  

Statutory pay will be available to employees, provided they have 26 weeks of continuous service with their employment and earn at least £125 per week. Pay is the same rate as statutory maternity and paternity pay – £187.18 per week for 2024/2025.

If there are multiple births from the same pregnancy (i.e. twins) and both babies receive the same amount of care, the parents can only claim for one period of NCL. For example, if twins received 4 weeks of neonatal care, only 4 weeks can be reclaimed – not 8 weeks (one period per baby). However, NCL can accrue if each child receives neonatal care at different time. This is subject to a maximum of 12 weeks in total.  

‍How do employers prepare?

Prior to April, employers will need to think about the regulations and any enhancements they want to offer in terms of leave and pay. Employers can also opt to remove or alter any notice periods – so long as the new requirements don’t hinder statutory requirements. The statutory entitlements and any employer additions should be documented in an appropriate policy. If you need help preparing a policy – let’s chat.  

Parents of newborns receiving neonatal care are presented with unique challenges in addition to navigating parenthood. Managers should be made aware of the new Neonatal Care Act and given training to equip them with the understanding of the emotional and logistical challenges their colleagues may face and how to support them during leave and upon their return to work.  

Any payroll systems should be updated to accommodate statutory pay calculations – including any eligibility criteria, including service requirements and minimum earnings thresholds. Employers can reclaim 92% of statutory pay. If an employer qualifies for Small Employers’ Relief, they may be able to claim 103% of statutory pay.

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The introduction of the Neonatal Care Act is a positive shift towards greater family-friendly workplace policies in the UK. By recognising the unique challenges faced by parents of newborns in neonatal care, the government is taking a vital step in supporting families during one of the most critical periods of their lives. Employers embracing this change are also one step closer to fostering a culture of compassion and support within the workplace.