Neonatal Care Leave and Pay

Neonatal care leave is a new statutory right created by the Neonatal Care (Leave and Pay) Act 2023, which came into force on 6 April 2025. It provides leave for parents whose newborn babies receive neonatal care (care provided in a hospital or other medical setting in the first 28 days after birth).

Qualifying conditions for neonatal care leave:

• The baby must receive neonatal care for 7 or more continuous days starting within the first 28 days after birth.
• The leave entitlement is for employees — both parents (mother, father, or partner) can take neonatal care leave.
• There is no minimum service requirement — it is a day-one right.
• The right applies to parents of babies born on or after 6 April 2025.
• It also applies in adoption and surrogacy arrangements.

The amount of neonatal care leave available is one week per week of neonatal care received, up to a maximum of 12 weeks. So if the baby receives 3 weeks of neonatal care, the parent is entitled to 3 weeks of neonatal care leave; if the baby receives 12 or more weeks, the full 12-week entitlement is available.

Neonatal care leave operates in two tiers based on when it is taken:

Tier 1 — Leave taken while the baby is still receiving neonatal care: Leave can start during the period the baby is receiving neonatal care or immediately after it ends. During tier 1, leave can be taken immediately with minimal notice requirements (employees should give notice as soon as is reasonably practicable). Tier 1 leave must be taken in complete weeks.

Tier 2 — Leave taken after the neonatal care period has ended: Leave taken after the baby has been discharged from neonatal care. This leave can be taken at any point within 68 weeks of the baby's birth. Tier 2 leave requires at least one week's notice before the intended start date.

Neonatal care leave is additional to, and must be taken after, other statutory leave entitlements:

• After maternity leave (for the mother)
• After paternity leave or shared parental leave (for the other parent)

The leave cannot be taken at the same time as maternity, paternity, or shared parental leave — it adds to the total period of leave available to parents.

Statutory Neonatal Care Pay (SNCP) is paid during neonatal care leave, but unlike neonatal care leave (which is a day-one right), SNCP has a qualifying period:

• The employee must have been continuously employed for at least 26 weeks ending with the week in which the baby is born (or, in adoption cases, the relevant matching week).
• The employee must have average weekly earnings of at least the lower earnings limit for National Insurance (£123/week in 2024–25).

The rate of SNCP is the same as Statutory Maternity Pay flat rate:

• £194.32/week (2025/26 rate, subject to annual uprating) or 90% of average weekly earnings if that is lower.

Employers pay SNCP in the same way as other statutory family payments and can recover most of the cost from HMRC. SNCP is a taxable payment, subject to income tax and National Insurance deductions. Employees who do not qualify for SNCP because they have not met the 26-week employment requirement still have the right to take neonatal care leave (unpaid).

To take neonatal care leave, an employee must give notice to their employer, though the requirements are designed to reflect the emergency nature of neonatal situations:

• For tier 1 leave (taken while the baby is still in neonatal care): notice should be given as soon as is reasonably practicable — in practice, when the employee is able to do so given the circumstances.
• For tier 2 leave (taken after discharge): at least one week's advance notice is required.
• For SNCP: to receive pay, the employee must give notice in writing and confirm that they meet the qualifying conditions.

Employment protections during neonatal care leave:

• Employees cannot be dismissed or subjected to any detriment because they have taken, or sought to take, neonatal care leave.
• Employees are entitled to return to the same job after neonatal care leave (or a suitable equivalent if the leave is combined with other leave that exceeds 26 weeks).
• Terms and conditions of employment (other than pay) continue during neonatal care leave.
• Holiday continues to accrue during neonatal care leave.

If your employer refuses to allow neonatal care leave, dismisses you for taking it, or subjects you to a detriment, you can bring a claim to the Employment Tribunal. Seek advice from Acas or an employment solicitor.