From April 6, 2025, working parents across England, Scotland, and Wales will benefit from a landmark new employment right, neonatal care leave, designed to support families during one of life’s most challenging moments: when a newborn requires neonatal care.
This legislation will provide parents with dedicated neonatal care leave (NCL) and neonatal care pay (NCP), allowing them to focus on their baby’s wellbeing without the additional stress of work commitments or depleting existing leave entitlements.
The government estimates around 60,000 parents annually will benefit from these new provisions, helping them navigate both the emotional and practical challenges that come with having a baby in neonatal care.
Who Qualifies for the New Entitlement?
The eligibility criteria are:
- Parents must have a baby born on or after April 6, 2025
- The baby must be admitted to neonatal care within the first 28 days of life
- The baby must have a continuous stay in neonatal care of seven full days or more
The definition of “parents” is inclusive, covering:
- Birth parents
- Adoptive parents
- Parents fostering to adopt
- Intended parents in surrogacy arrangements
- The mother’s partner (defined as someone living with the mother in a long-term family relationship who expects to share responsibility for raising the child)
Understanding Neonatal Care Leave
Neonatal Care Leave (NCL) represents a significant advancement in parental rights, offering:
- Between 1-12 weeks of leave, depending on the duration of neonatal care
- Leave must be taken in full-week blocks
- Each parent has their own independent entitlement (it’s not shared between partners)
- This leave is additional to existing maternity, paternity, or shared parental leave
- Must be taken within 68 weeks of birth
Financial Support Through Neonatal Care Pay
For eligible employees, Neonatal Care Pay (NCP) provides crucial financial support for up to 12 weeks. To qualify, employees must:
- Have worked for their employer for at least 26 weeks (ending with the relevant week)
- Earn above the Lower Earnings Limit (£125 per week from April 2025)
The Two-Tier Leave System
The legislation establishes two categories of leave with different requirements:
Tier 1 Leave:
- Taken while the child is receiving neonatal care or up to one week after discharge
- Can be taken in non-continuous blocks (minimum one week each)
- More flexible notification requirements
Tier 2 Leave:
- Taken at any other time up to 68 weeks from birth
- Must be taken as one continuous block
- Requires written notice to the employer
What Employers Need to Do Now
Employers should update their HR policies and handbooks to incorporate these new rights. They should brief managers on the new entitlements and notification procedures and ensure all employees are informed about these important new rights. Payroll systems should be adjusted to accommodate Neonatal Care Pay.
Getting Support
Navigating new employment legislation can be complex. If you have questions about implementing these changes within your organisation, contact us on 01905 777600, or email hello@ormerodrutter.co.uk
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