News

Recent updates: New Neonatal Leave and Pay for Working Families

The Department for Business and Trade has announced that a new right to neonatal leave will come into effect from 6 April 2025, providing critical support for working parents with babies in neonatal care. This follows the Neonatal Care (Leave and Pay) Act, passed in 2023.

Eligible parents (those with babies admitted to neonatal care for at least 7 days and up to 28 days old) will be entitled to up to 12 weeks of Neonatal Care Leave, in addition to existing maternity and paternity leave. Statutory Neonatal Care Pay will also be available to those meeting continuity of service and earnings thresholds.

The new measures are expected to benefit around 60,000 parents, allowing them to focus on supporting their newborns without the stress of choosing between their job and spending crucial time with their baby in hospital.

Employment Rights Bill

The Employment Rights Bill, introduced to Parliament on 10 October 2024, intends to:

  • make provision to amend the law relating to employment rights;
  • make provision about procedure for handling redundancies;
  • make provision about the treatment of workers involved in the supply of services under certain public contracts;
  • provide for duties to be imposed on employers in relation to equality;
  • provide for the establishment of the School Support Staff Negotiating Body and the Adult Social Care Negotiating Body;
  • make provision about trade unions, industrial action, employers’ associations and the functions of the Certification Officer;
  • make provision about the enforcement of legislation relating to the labour market; and for connected purposes.

The Bill must also undergo scrutiny in Parliament, where proposed amendments will be considered. The Bill is expected to be passed into law no earlier than summer 2025, although many of the reforms will likely not take effect until 2026.

As of late-January 2025, this Bill is still in the House of Commons and is due to have its report stage and third reading on a date to be confirmed. Amendments can be made to the Bill at Report Stage and amendments to be considered are selected by the Speaker.

Monitoring the progress of the Employment Rights Bill here: https://bills.parliament.uk/bills/3737

What to look out for:

Paternity Leave (Bereavement)

Following the Paternity Leave (Bereavement) Act 2024, new regulations are expected by April 2025. These will grant fathers and non-birthing partners access to paternity leave if the mother or adoptive parent dies, potentially offering up to 52 weeks of leave from day one of employment.

April 2025: New Statutory Rates

Several statutory rates will increase from April:

  • National Living Wage (over 21s) rises to £12.21
  • National Minimum Wage (18-20 years) increases to £10.00
  • National Minimum Wage (16-17 years and apprentices) rises to £7.55
  • Statutory Sick Pay increases to £118.75 per week
  • Statutory Maternity Pay and family-related leave pay rises to £187.18 weekly
  • Lower Earnings Limit increases to £125 per week