New Statutory Entitlements for Neonatal Leave and Pay in the United Kingdom

Quick Hits

• Under the Neonatal Care (Leave and Pay) Act 2023, employed parents whose babies are admitted to neonatal care within the first twenty-eight days of birth and remain in hospital for at least seven consecutive days have a right to up to twelve weeks of leave and pay.
• The act aims to allow new parents necessary time during challenging circumstances without interfering with their maternity, paternity, or parental leave.
• The UK government anticipates that approximately 60,000 new parents will benefit from the new rights.

The act will introduce additional time off as a day one right beginning on 6 April 2025. The right to neonatal leave and pay applies to individuals with a parental or significant personal relationship to a baby, born after 6 April 2025, receiving neonatal care. Eligible parents will be able to take neonatal care for each week that their baby is in the hospital, up to a maximum of twelve weeks. The leave must be used within the first sixty-eight weeks of the baby’s birth (or placement or entry to Great Britain in the event of adoption).

To qualify for neonatal pay an employee must have worked for the employer for at least twenty-six weeks before requesting leave and have earned at least £125 per week on average. This is similar to the existing entitlement for maternity pay.

The same employment protections that apply to other types of family-related leave will also apply to parents who take neonatal leave, including protection from dismissal or detriment as a result of taking or applying for neonatal leave. Employees will also remain entitled to the same terms and conditions of employment, with the exception of pay. Additionally, employees who have taken six consecutive weeks of neonatal leave will benefit from extended redundancy protection rights (if these do not already apply via an employee’s notification of their pregnancy, or through the taking of maternity, adoption, or paternity leave) with the right to return to the same job or to be offered a suitable alternative depending on the date on which the right to return is exercised.

Upcoming Changes

The updates to neonatal leave and pay are due to be implemented alongside other changes coming into force from 6 April 2025. In particular, the rate of statutory sick pay will increase from £116.75 to £118.75 per week. The statutory rates of maternity pay, maternity allowance, adoption pay, paternity pay, shared parental pay, and parental bereavement pay will also all increase from £184.03 to £187.18 per week. The lower earnings limit will also increase to £125 from £123.

Ogletree Deakins’ London office will continue to monitor developments and will provide updates on the Cross-Border, Employment Law, Global Reorganizations, and Leaves of Absence blogs as additional information becomes available.

Emma Thomson is an associate in the London office of Ogletree Deakins.

Lorraine Matthews is a practice assistant in the London office of Ogletree Deakins.

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