Neonatal care leave: when it applies
Introduced from April 2025, neonatal care leave applies when a baby born on or after 6 April 2025 is admitted to neonatal care within 28 days of birth and stays for a continuous period of at least 7 days. Each qualifying parent gets 1 week of leave for each full week the baby spends in care, capped at 12 weeks, and it is added on top of maternity, paternity or shared parental leave rather than replacing it. The leave is a day 1 employment right.
Neonatal pay in 2026/27
Statutory Neonatal Care Pay follows the family payment template: £194.32 a week or 90% of average weekly earnings if lower, for up to 12 weeks. The employee needs 26 weeks of continuous service by the relevant week and average earnings of at least £129. It is paid through payroll, taxed and NIable, and recovered through the EPS at 92% or 109% under Small Employers' Relief, exactly like SMP.
How neonatal leave is taken
The rules split leave into tier 1, taken while the baby is still in neonatal care or within a week of discharge, and tier 2, taken later but within 68 weeks of birth. Tier 1 notice can be given informally and quickly given the circumstances; tier 2 requires more formal notice. In practice, a father whose paternity leave ran out while the baby was still in hospital is the classic case this right was designed for.
Parental bereavement leave and pay
Parents who lose a child under 18, or suffer a stillbirth after 24 weeks of pregnancy, are entitled to 2 weeks of parental bereavement leave, taken as 1 or 2 whole weeks any time within 56 weeks of the death. The leave is a day 1 right. Statutory Parental Bereavement Pay of £194.32 a week, or 90% of earnings if lower, applies where the employee has 26 weeks of service and earnings of at least £129 a week. Notice requirements are deliberately light: within the first 8 weeks, an employee can effectively start leave immediately by telling you before their shift.
Payroll and record keeping
Both payments run through the payslip with tax and NI, both are recoverable at 92% or 109% via the EPS, and both continue pension contributions under your scheme rules. No medical evidence beyond a simple declaration can be demanded for bereavement leave, and for neonatal leave a written declaration of the care dates suffices. Keep declarations and payment records for 3 years.
Handling these situations well
These are the hardest conversations a payroll inbox ever sees. Train managers that both leaves exist, keep forms minimal, and never let a statutory payment be the reason a grieving or hospital bound parent has to chase HR. If your team wants a safety net, our payroll service processes every statutory payment with the sensitivity the situation demands, and our guide to paternity rights covers the day 1 changes that often apply in the same weeks.
Frequently asked questions
What is Statutory Neonatal Care Pay?
Pay for parents whose baby is admitted to neonatal care within 28 days of birth for a continuous stay of 7 days or more. It adds up to 12 weeks at £194.32 a week or 90% of earnings if lower in 2026/27, on top of maternity or paternity entitlements.
Is neonatal care leave a day 1 right?
The leave is a day 1 right for employees. The pay requires 26 weeks of service and average earnings of at least £129 a week, mirroring the other family payments.
How much is Statutory Parental Bereavement Pay?
2 weeks at £194.32 a week or 90% of average earnings if lower in 2026/27, following the death of a child under 18 or a stillbirth after 24 weeks of pregnancy. The leave itself is a day 1 right.