For babies born on or after 06 April 2025, a new statutory entitlement has been available to employees in Great Britain. Similar legislation and entitlement is not currently in force for employees who ordinarily work in Northern Ireland.
To qualify for leave:
• The baby must enter neonatal care within 28 days after their date of birth; and
• One week’s leave is accrued (to a maximum of 12) for each full 7 continuous days in care
To qualify for pay:
• Eligible employees must have worked for their employer for at least 26 continuous weeks; and
• Have earnings at or above the Lower Earnings Limit for National Insurance Contributions
This is a consolidation of the rules, guidance on which has only been available in places such as:
• Gov.UK;
• HMRC’s Statutory Payments Manual; and
• Acas
Whilst this guidance is useful, especially from Acas, this does not fully allow employers to understand the rules and develop policies and processes for their employees. On 22 August 2025, over four months since the new entitlement came into force, the Department for Business and Trade (DBT) published their ‘Neonatal care leave and pay: employers' technical guide’. This is described as ‘technical guidance for employers who are developing or updating their policies on neonatal care leave and pay’.
For Bookkeepers
This guidance covers the following areas:
• Summary: Neonatal Care Leave and Pay;
• Eligibility criteria - Knowing whether the employee qualifies for Neonatal Care Leave and Pay;
• Information the employee must provide;
• How to calculate how much Neonatal Care Leave and Pay the employee has accrued;
• When Neonatal Care Leave can be taken;
• How to fit Neonatal Care Leave and Pay around other statutory leave and pay;
• How to calculate the relevant week and average earnings;
• Information you are required to provide to HMRC; and
• How employers can support employees
ICB recommends you pass this information to your clients who may take this on board and adapt policies that will be in place. Importantly, ICB highlights a sentence towards the start of this guidance which says:
‘we expect employers to act flexibly and compassionately to enable them to be with their family in this difficult time.’
Links to further information on supporting employees can be found on page 34 of the guidance, NOT page 39 as is detailed.
