The Neonatal Care (Leave and Pay) Act 2023 received Royal Assent on 24 May 2023, starting its legislative passage from being a Private Members Bill read in the House of Commons for the first time in June 2022.
It is important to state that the 2023 Act is enabling legislation which inserts provisions as follows:
- For leave into the Employment Rights Act 1996; and
- For pay into the Social Security Contributions and Benefits Act 1992
Both of these Act apply in Great Britain only, as will this new statutory entitlement.
The Act provides for the following:
Leave (as per the Employment Rights Act)
The statutory right to take leave of up to 12 weeks for employees who have responsibility for children who receive neonatal care in the first 28 days of life. This is a day 1 right in addition to existing child-related leave entitlements such as maternity, adoption and paternity leave.
Pay (as per the Social Security Contributions and Benefits Act)
Subject to meeting qualifying conditions (such as service and earnings), the statutory right to leave may be paid. This conditional right is in addition to other child-related pay entitlements that may exist, for example, Statutory Maternity, Adoption and Paternity Pay.
Commencing Legislation
On 09 August 2023, The Neonatal Care (Leave and Pay) Act 2023 (Commencement No. 1) Regulations 2023 were published which came into force on 21 August 2023. These Regulations ONLY allowed HMRC to start preparatory work for the Statutory Neonatal Pay payment.
On 16 January 2025, The Neonatal Care (Leave and Pay) Act 2023 (Commencement No. 2) Regulations 2025 brought into force the remainder of the provisions in the 2023 Act from 17 January 2025. They are subject to UK Parliamentary approval and, if approved, Statutory Neonatal Leave and Pay will take effect from 06 April 2025.
UK Government Press Release
On 20 January 2025, the Department for Business and Trade confirmed the effective date in a Press Release.
For Bookkeepers
We have had a long wait but now preparations can be made for this new statutory leave and pay entitlement. HMRC have provided draft guidance to software developers to enable them to update their products. The monthly Wages Wednesdays will be providing you with the necessary information to enable this to be delivered.