From 6 April 2025, parents across England, Scotland and Wales gained new statutory rights. These rights support families when their newborn requires specialist medical attention. The Neonatal Care (Leave and Pay) Act 2023 provides essential support during difficult times.
The new legislation came into force on 6 April 2025, providing eligible employees with you can take paid time off when their baby requires neonatal care. These measures are expected to benefit around 60,000 new parents each year.
Key takeaways:
- Neonatal Care Leave is a day-one right
- Up to 12 weeks additional leave available
- Payment requires 26 weeks’ service
- Leave complements existing family entitlements
- Enhanced employment protections apply
- Both parents can claim separately
- Flexibility exists for different circumstances
What is Neonatal care?
Neonatal care refers to specialist medical attention for newborn babies. This care addresses various health challenges that infants may face shortly after birth.
Understanding the neonatal care definition helps parents recognise their entitlements. Neonatal care is the name given to care for newborn babies which starts in the first 28 days after birth. The neonatal care meaning encompasses three distinct categories:
Categories of Neonatal care
- Hospital care
- Medical treatment received in hospital newborns units
- Care provided in specialised neonatal unit in the UK facilities
- Inpatient treatment for premature or sick babies
- Post hospital medical care
- Post-hospital medical care must be supervised by a consultant and include ongoing visits or checks arranged by the hospital where the baby was treated
- Consultant-directed monitoring at home
- Follow-up appointments with healthcare professionals
- Palliative or end of life care
- Specialist support in difficult circumstances
- Compassionate care for critically ill newborns
- Professional medical supervision throughout
Parents looking for more support and guidance on neonatal care can visit Bliss Neonatal Care.
Some important terms
| Term | Meaning |
|---|---|
| Qualifying Week | The 15th week before the baby’s expected birth date; used to determine pay eligibility. |
| Tier 1 Period | When the baby is still in neonatal care and up to one week following discharge. Leave can be taken flexibly. |
| Tier 2 Period | The period after Tier 1 up to 68 weeks from birth. Leave must be taken in one continuous block. |
| Lower Earnings Limit (LEL) | Earnings threshold (£125 per week in 2025–26) to qualify for statutory pay. |
What is the Neonatal period?
The neonatal period is crucial for understanding eligibility. The baby must enter neonatal care within 28 days of birth and spend at least 7 consecutive days in neonatal care. This timeframe determines whether parents can access the new statutory rights.
What is the neonatal period exactly?
It covers the first 28 days after birth. During this time, babies may require intensive medical support.
Parents should be aware of these timeframes when considering their options.
Eligibility for Neonatal Care Leave
While leave is guaranteed from day one, payment has additional qualifying conditions. This section helps parents understand when they may be due neonatal care pay.
Who qualifies for care leave?
The right to take neonatal care leave applies from the first day of work. This makes neonatal care leave rights in the UK accessible to all eligible employees. The day-one right ensures broader protection for working families.
Eligible parents include:
- Birth mothers and birthing parents
- Fathers and partners
- Married to, the civil partner of or partner of the mother or birth parent: this includes same-sex partners
- Adoptive parents
- Intended parents in surrogacy arrangements
Key eligibility requirements
The newborn must be admitted to neonatal care within the first 28 days of birth and must remain in neonatal care for at least 7 continuous days.
However, there’s an important detail about timing. The first period of 7 days begins with the day after the day your baby first receives neonatal care which effectively means that the newborn must spend 8 days in neonatal care before you will become entitled to leave.
Parents must:
- Be employed in England, Scotland, or Wales
- Have a baby born on or after 6 April 2025
- Take leave to provide care for the baby
- Have parental or partner responsibility for the child
How much leave can parents take?
An employee can take up to a maximum of 12 weeks’ neonatal care leave from the first day of their employment. The amount of leave depends directly on the baby’s time in care. They can take one week of leave for every 7 consecutive full days the baby spends in neonatal care.
Leave calculation table
| Baby’s time in care | Leave entitlement | Maximum weeks |
|---|---|---|
| 7-13 days | 1 week | 1 week |
| 14-20 days | 2 weeks | 2 weeks |
| 21-27 days | 3 weeks | 3 weeks |
| 84+ days | 12 weeks | 12 weeks (maximum) |
Timeframe for taking leave
Employees must take all leave within 68 weeks of the baby’s date of birth. This extended timeframe provides flexibility for families. Parents can plan their leave around their specific circumstances and needs.
Understanding Tier 1 and Tier 2 leave
To make the new framework easier to follow, the Act defines two types of leave periods: Tier 1 and Tier 2.
In simple terms:
- Tier 1 applies while the baby is still in hospital or within one week after leaving hospital.
- Tier 2 applies after that first week, up to 68 weeks from birth.
| Aspect | Tier 1 Leave | Tier 2 Leave |
|---|---|---|
| Applies when | Baby still in neonatal care or up to a week after discharge | More than 7 days after neonatal care ends |
| How leave is taken | In blocks of at least one week, can be non-consecutive | One continuous block only |
| Notice required | Before each week of leave (flexible if urgent) | 15 days’ written notice for one week; 28 days for multiple weeks |
| Interruption allowed | Can be broken by other parental leave | Cannot be split or paused |
| Typical use | During real-time hospital care | After other leave, e.g. maternity or paternity, ends |
Tier 1 Period leave
Tier 1 is for the period when the child is still receiving neonatal care and including 1 week after the care has ended. This period offers maximum flexibility for parents.
Tier 1 characteristics:
- Applies while baby receives neonatal care
- Extends for one week after care ends
- Tier 1 leave can be taken in non-continuous blocks of a minimum of one week at a time
- Can be interrupted by other parental leave
- Allows alternating weeks of work and leave
Tier 2 Period leave
Tier 2 is for the period outside tier 1 and before the end of 68 weeks from the date of the child’s birth. This applies after the baby has been home for over a week. Tier 2 leave operates under different rules.
Tier 2 characteristics:
- Applies more than 7 days after care ends
- Tier 2 period leave applies to leave taken more than 7 days after the neonatal care has ended and must be taken in one continuous block
- Cannot be split into separate periods
- Requires longer notice periods
- Typically taken at the
Notice requirements for Neonatal Care Leave
Notice requirements vary depending on whether the leave is taken during neonatal care (Tier 1) or after (Tier 2).
- For Tier 1, notice should be given ideally before each week of leave starts, employers may waive this if unforeseen circumstances arise.
- For Tier 2, written notice is required:
- At least 15 days before a single week of leave.
- At least 28 days before two or more weeks of leave.
Tier 1 Notice requirements
For each week of Tier 1 period leave, notice must be given before you are due to start work on your first day of absence in that week unless it is not reasonably practicable. Flexibility is built into these requirements. Employers recognise that neonatal situations can be unpredictable.
Key points:
- Notice required before first day of absence
- Flexibility when circumstances prevent advance notice
- No requirement for written notice
- Employers can waive notice requirements
Tier 2 Notice requirements
Tier 2 leave requires more structured notice periods. For a single week of Tier 2 period leave, notice must be given no later than 15 days before the first day of the neonatal leave. Longer leave periods need more advance warning.
For two or more consecutive weeks of Tier 2 Leave, notice must be given no later than 28 days before the first day of the neonatal care leave to which the notice relates. All Tier 2 notices must be submitted in writing.
Neonatal Care Leave rights in the UK: Employment protections
Parents taking neonatal care leave benefit from full employment protections during their time off. Their right to a safe job is secured, with continued accrual of benefits like pay rises and holiday entitlement. Parents are also protected from dismissal and unfair treatment, with enhanced redundancy protections available during leave and for up to 18 months after birth if they take at least six weeks continuously
Protected Employment Rights
Parents taking neonatal care leave retain important workplace protections.
An employee’s rights (like the right to pay rises, holidays and returning to a job) are protected during neonatal care leave.
These protections ensure fair treatment throughout the leave period.
Protected rights include:
Returning to Work
You must return to the same job if you return to work after an isolated period of neonatal care leave. The right to return depends on several factors. Most parents can expect to return to their original role.
If you returned to work after the last of two or more consecutive periods of statutory leave which did not include more than 4 weeks of parental leave or which did not total more than 26 weeks (excluding parental leave) of statutory leave, you must return to the same job.
Redundancy protections
Enhanced protections apply during neonatal care leave. You must enhanced redundancy protections if you are made redundant while you are on neonatal care leave irrespective of the length of the leave. Additional safeguards exist for longer leave periods.
You must an extended period of enhanced redundancy protections (for a period of 18 months from the birth of you baby) if you have taken at least 6 continuous weeks of neonatal care leave.
Eligibility for Neonatal Care Pay
To qualify for neonatal care pay, you must have worked continuously for your employer for at least 26 weeks by the qualifying week (usually 15 weeks before the baby’s due date) and earn at least £125 per week on average over an 8-week period.
Pay is either £187.18 per week or 90% of your average earnings, whichever is lower, for up to 12 weeks within 68 weeks of birth. Employers pay Statutory neonatal care pay initially and may reclaim most or all of these costs from HMRC, as with other statutory parental payments.
Service requirements
while leave is a day-one right, payment has specific requirements. You must have been employed by your employer for a continuous period of at least 26 weeks ending with the relevant week (which is the 15th week before the week in which the baby is due). This mirrors requirements for other statutory family payments.
Earnings threshold
Your average gross weekly earnings must be at least equal to the lower earnings limit for National Insurance (NI) purposes. In April 2025-26, this is £125 per week. Earnings are calculated over a specific period. As a general rule, your earnings will be averaged over a period of at least 8 weeks up to and including the last pay day before the end of the relevant week.
How much is Neonatal Care Pay?
Neonatal care pay is either £187.18 per week (from April 2025) or 90% of your average weekly earnings, whichever is lower.
It’s payable for up to 12 weeks within 68 weeks of your baby’s birth and aligns with the leave taken. Employers pay initially but can reclaim costs. Taxes and National Insurance are deducted as usual.
Statutory Payment Calculation Table
| Circumstance | Weekly Rate | Notes |
|---|---|---|
| Standard Rate | £187.18 | From April 2025 |
| Lower Earners | 90% of average earnings | When less than £187.18 |
| Maximum Duration | 12 weeks | Total payment period |
| Tax Treatment | Subject to PAYE | Standard deductions apply |
Statutory payment rates
Statutory neonatal care pay is paid at the lower of the prevailing statutory rate (which will be £187.18 from April 2025) or 90% of normal weekly earnings. The payment structure matches other statutory family pay schemes.
Employer Reclaim Process
Important note for employers: Employers can claim reimbursement for Statutory neonatal care pay costs through HMRC’s usual statutory pay reclaim system, the same way they reclaim statutory maternity pay, paternity pay, adoption pay and other statutory payments.
How it works:
- Employers initially pay Statutory neonatal care pay to eligible employees
- Costs can then be recovered through the standard HMRC statutory payment recovery scheme
- Small employers (those with gross annual Class 1 National Insurance liabilities of £45,000 or less) can recover 108.5% of payments made
- Larger employers can recover 92% of payments made
- Claims are typically made through the Employer Payment Summary (EPS) as part of regular payroll reporting
- This system ensures employers are not financially disadvantaged when supporting employees during this difficult time
Payment duration and structure
Neonatal care pay may be paid for a maximum of 12 weeks and is payable within the first 68 weeks of the child’s birth. Payments must align with the leave taken. Tax and National Insurance contributions are deducted as normal.
Notice requirements for Neonatal Care Pay
To claim neonatal care pay, you must notify your employer before taking leave. For leave during neonatal care (Tier 1), notice can be given verbally or in writing, ideally before your shift or as soon as possible. For leave after this period (Tier 2), written notice is required 15 days before a single week or 28 days before multiple weeks. You’ll need to provide details about your baby’s care dates and confirm your eligibility.
Tier 1 Payment Notice
For each week of statutory pay beginning in Tier 1 period, notice must be given within 28 days from the first day of the period the notice relates to unless it is not possible to give this much notice.
Payment notices can differ from leave notices. Written notice becomes essential for payment claims.
Tier 2 Payment Notice
Payment notices for Tier 2 follow similar rules to leave notices. For a single week of statutory pay beginning in the Tier 2 period, notice must be given no later than 15 days before the first day of the pay week which the notice relates to. Multiple weeks require earlier notification.
For two or more consecutive statutory pay weeks beginning in the Tier 2 period, notice must be given no less than 28 days before the first day of the first week the notice relates to.
How Neonatal Care Leave interacts with Other Leave?
Neonatal Care Leave (NCL) adds to existing family leave types like maternity, paternity, adoption and shared parental leave, meaning parents don’t lose any current entitlements.
Mothers must finish maternity or adoption leave before starting NCL, which can be taken afterward. Paternity and shared parental leave can interrupt NCL during the baby’s neonatal care or the first week after discharge, allowing parents to combine and plan their leave flexibly for their child’s needs.
New Parental Leave Entitlements
The new rights complement existing family leave provisions. Statutory neonatal care leave is in addition to other statutory rights such as maternity, paternity, adoption and shared parental leave. This means parents don’t lose existing entitlements.
Interaction with Maternity Leave
Employees must take Neonatal care leave after any Statutory Maternity or Adoption Leave. Mothers cannot take neonatal leave during maternity leave. However, they can add it at the end.
ACAS Maternity Leave guidance
ACAS maternity leave rules continue to apply separately. Neonatal Care Leave doesn’t replace acas maternity pay provisions. The two entitlements work together to support families.
Paternity Leave Premature Birth Situations
If the baby is in neonatal care, or in the first week after, Neonatal care leave can be interrupted by other types of pre-booked parental leave (such as Paternity or Shared Parental Leave). This allows partners to rotate between different leave types. Paternity leave premature birth scenarios benefit from this flexibility.
ACAS paternity leave entitlements remain unchanged. Partners can use their two weeks of paternity leave first. Then transition to neonatal care leave if needed. Shared parental leave ACAS guidance continues to apply. Parents can combine different leave types strategically. The remaining neonatal care leave can follow shared parental leave.
ACAS Parental Leave Provisions
Standard acas parental leave rights continue separately. ACAS time off for dependants may help during initial days. Remember that neonatal leave cannot start until day nine of care.
Information employees must provide
To take neonatal care leave and pay, employees must notify their employer with details including their name, baby’s birth date, neonatal care start and end dates, leave start date and the number of weeks requested.
They must confirm the leave is to care for the baby and their eligibility. If notice is given before care ends, employees should update their employer promptly when care finishes or restarts to ensure accurate leave calculation.
Required details for Notice
In order to take neonatal care leave and neonatal care pay, you must provide your employer notice stating: Your name, Your baby’s date of birth, The start date or dates of neonatal care, The date neonatal care ended (if applicable), The date on which you would like to take the leave (and pay), The number of weeks of neonatal care leave (and pay) the notice is being given for, Confirmation that the leave is being taken to care for the baby, Confirmation that you are eligible to take the leave due to your relationship with the baby.
Ongoing notification requirements
If you have given notice before your baby has stopped receiving neonatal care, you must inform your employer of the date that neonatal care ends, as soon as is reasonably practicable after that date. This keeps employers informed of changing circumstances.
It enables accurate calculation of remaining entitlements.
Special circumstances and complex situations
If you have multiples born at the same time and both need care, If care for two or more babies overlaps, you can only claim leave for the simultaneous care period once up to a combined maximum of 12 weeks.
Separate care periods for each baby at different times allow accumulating leave for each. For premature births, you qualify for pay even if born early.
Compassionate rules apply if the baby sadly dies after qualifying. You can start neonatal leave after statutory maternity pay ends to extend paid leave. Notice withdrawal is possible within set timeframes with mutual agreement.
Multiple births
- Simultaneous Care (Overlapping Periods): Unfortunately, you cannot claim neonatal care leave in respect of more than one baby if the babies are receiving care at the same time. This limitation applies to twins and other multiple births.
Example: If you have twins and both receive care for a period of 4 weeks at the same time, you would only be entitled to 4 weeks of neonatal care leave (not 8 weeks). - Sequential Care (Different Times): However, sequential care creates different entitlements. You can accrue neonatal care leave in respect of more than 1 child, if they receive neonatal care at different times, but this is still subject to a total maximum of 12 weeks.
Example: If you have twins and one receives care for 4 weeks, then is discharged and later the second twin is readmitted and receives care for 3 weeks, you could be entitled to 7 weeks total leave.
Important note: Regardless of whether care is simultaneous or sequential, the absolute maximum entitlement is 12 weeks of neonatal care leave per parent.
Premature births
If your baby is born before the relevant week (which is the 15th week before the week in which the baby is due), you will be treated as having been employed in the relevant week and will still qualify for neonatal care pay. This protects parents of very premature babies. The calculation period adjusts to accommodate early arrivals.
Baby death after qualifying
In the very sad circumstances where a baby dies after neonatal care leave has accrued, you are still able to take the leave. This compassionate provision recognises continuing needs. Parents retain their accrued leave entitlements during bereavement.
Taking leave after Statutory Maternity Pay ends
There is nothing to stop you from choosing to take neonatal care leave and neonatal care pay as soon as Statutory Maternity Pay ends at 39 weeks. This strategy extends paid leave significantly. Mothers can plan nearly a full year of statutory pay.
Withdrawing Notice
If you have given notice to take leave in the Tier 2 period, it is possible to withdraw the notice. Withdrawal follows similar timeframes to the original notice. Employers and employees can mutually agree to vary notice requirements.
What employers need to know?
Employers should develop clear neonatal care leave policies aligned with legal requirements and existing family leave provisions to avoid confusion.
Offering enhanced leave and pay beyond statutory minimums can improve employee well-being and loyalty. It’s essential to update HR and payroll systems and train managers to manage requests compassionately and ensure smooth administration.
Policy development
Employers should consider having a specific neonatal care leave and pay policy reflecting at least the requirements set out in the legislation. Policies should sit alongside existing family leave provisions. Clear documentation prevents confusion and disputes.
Enhanced provisions
You can offer more than the statutory amounts if you have a company scheme for neonatal care leave and pay. Many employers choose to enhance statutory provisions. Some employers started implementing these policies early to benefit and support their employees.
System preparations
Employers will need to take steps to ensure HR and payroll systems are able to track any neonatal care leave, its interaction with other types of statutory leave and calculate payments due accordingly. System updates ensure smooth administration. Proper tracking prevents errors in leave calculations and payments.
Manager training
Employers should consider training your HR team and line managers on how to handle requests for NCL and NCP, so that they are ready to support parents when the new legislation comes into force.
Compassionate handling of requests remains crucial. Managers need awareness of the emotional context surrounding these situations.
Redundancy considerations
Employers need to be mindful of the enhanced redundancy protections applicable to certain employees on neonatal care leave.
Special protections apply during and after neonatal care leave.
Redundancy procedures must account for these enhanced rights.
Neonatal Policies and Procedures
Organisations should develop comprehensive neonatal policies. These neonatal policies and procedures should cover all scenarios. Clear guidance helps both employees and managers navigate difficult situations.
Key policy elements:
- Eligibility criteria and definitions
- Notice requirements for different tiers
- Payment calculation methods
- Integration with other leave types
- Contact points for support
- Documentation requirements
- Flexibility provisions
- Compassionate approaches
Supporting documentation
Bliss has created a briefing to help employers introduce the new entitlement. Various resources help organisations implement the new rights. The Government published a technical guide to help employers determine their employee’s eligibility, how much leave and/or pay they have accrued.
New Rules for Child Care Leave
The new rules for child care leave represent significant progress. New right to neonatal care leave and pay confirmed from 6 April, expected to benefit around 60,000 new parents. These new parental leave entitlements in the UK substantially improve support.
What are the new rules for neonatal leave in the UK? The key changes include:
- Day-one right to unpaid leave
- Up to 12 weeks additional leave
- Statutory pay for eligible parents
- Enhanced employment protections
- Flexibility in taking leave
- Integration with existing entitlements
Comparison with Previous Provisions
Before April 2025, no specific neonatal care provisions existed. For babies born before 6 April 2025, there is no legal right to additional leave or pay for parents with a baby receiving neonatal care. Parents relied on annual leave, unpaid leave, or employer discretion.
Impact on Working Families
Currently, many working families across the UK are having to return to work while their babies are sick in hospital and these measures aim to address some of the difficulties that thousands of parents face. The new rights provide financial and job security. Families can focus on their baby’s health without work-related stress.
Neonatal Rights in the UK: Summary table
| Aspect | Details |
|---|---|
| Start Date | 6 April 2025 |
| Eligibility | Day-one right for leave; 26 weeks for pay |
| Maximum Leave | 12 weeks |
| Payment Rate | £187.18 or 90% earnings (whichever is lower) |
| Minimum Care Period | 8 consecutive days |
| Leave Window | Within 68 weeks of birth |
| Tier 1 Flexibility | Non-consecutive weeks allowed |
| Tier 2 Requirement | Single continuous block |
| Earnings Threshold | £125 per week average |
| Protected Rights | Employment, return, redundancy |
Conclusion
The neonatal care (leave and pay) Act 2023 represents significant progress. These measures ensure employed parents can focus on supporting their new family without worrying about choosing between keeping their job and spending time with their baby.
The new statutory rights from April 2025 provide crucial support. Around 60,000 parents annually will benefit from these provisions. Understanding neonatal care leave rights in the UK helps families plan effectively.
Frequently Asked Questions
Who is entitled to Neonatal Care Leave and Pay?
All employees in England, Scotland and Wales can access neonatal care leave from day one. Parents who have a baby admitted to neonatal care up to the age of 28 days might be eligible for up to 12 weeks of leave. Payment requires 26 weeks’ service and minimum earnings of £125 weekly. Both parents can claim their own entitlement separately. Each eligible parent must a separate amount of leave. This includes parents who work for the same employer.
Can I take Neonatal Care Leave immediately?
You qualify for leave if your baby spends at least 7 consecutive full days in specialist neonatal care starting within 28 days of birth. Neonatal care leave can be taken from the day after the first qualifying period. This means that you are not able to start neonatal leave until day nine. Parents may need other leave types for the initial period. Options include acas time off for dependants, annual leave, or paternity leave.
What if my baby needs care after 28 days?
Neonatal care must start within 28 days of the baby’s birth and continue uninterrupted for at least seven days. Care starting after 28 days doesn’t qualify under these provisions. The timing requirement protects the definition of neonatal care.
How does this work with maternity leave?
Employees must take neonatal care leave after any Statutory Maternity or Adoption Leave. Mothers cannot take neonatal care leave simultaneously with maternity leave. However, it can follow immediately after maternity leave ends.
Can fathers and partners claim this leave?
Yes, fathers and partners have full access to these rights. This includes fathers and partners of birth parents. Partners taking neonatal care leave during tier 1 can alternate with work.
What happens if my baby is readmitted?
If the baby is readmitted within 28 days of birth, the care period continues. Time spent travelling between places of neonatal care does not break this continuity. Transportation between facilities maintains the uninterrupted care period.
Do I need to provide evidence?
Employers may request reasonable evidence of the baby’s care. This typically includes hospital documentation or consultant letters. Specific evidence requirements should appear in employer policies.
Can my employer refuse Neonatal Care Leave?
No, if you meet the eligibility criteria. An employee can take up to a maximum of 12 weeks neonatal care leave from the first day of their employment. This is a statutory right that employers must honour.
What if I can’t give the required notice?
Unless it is not reasonably practicable in which case you must give as much notice as soon as it is reasonably practicable. The legislation recognises that neonatal situations are unpredictable. Employers should apply flexibility in urgent circumstances.
How do I calculate my entitlement?
They can take one week of leave for every 7 consecutive full days the baby spends in neonatal care. Count complete weeks from the day after care started. The earliest leave starts on the ninth day of care.
Does this apply to adopted babies?
Yes, adoptive parents have equal rights. This includes if they are adopting a child, including fostering to adopt. Timing runs from placement rather than birth dates.
Can I take neonatal leave part-time?
No, leave must be taken in complete weeks. neonatal care leave must be taken in blocks of a week. However, tier 1 allows non-consecutive weeks.
What if my employer offers enhanced provisions?
You can offer more than the statutory amounts if you have a company scheme for neonatal care leave and pay. Enhanced schemes cannot reduce statutory minimums. Employees should always receive at least the statutory entitlement.
How do employers get reimbursed for paying Neonatal Care Pay?
Employers can claim reimbursement for Statutory neonatal care pay costs through HMRC’s usual statutory pay reclaim system, the same way they reclaim statutory maternity pay, paternity pay and other statutory payments. This helps offset the cost of supporting employees during this difficult time.
What happens with twins or multiples needing care?
If twins or multiples need neonatal care at the same time, parents can only take leave for the overlapping period, not double. But if the babies need care at different times, parents can add up the separate care periods. Still, the total leave taken can’t go over 12 weeks per parent.
