Overview

This bill introduces a new statutory right to neonatal care leave and pay for employees caring for a child receiving neonatal care. This entitlement aims to support parents and carers during a challenging time, ensuring they can take time off work without financial penalty.

Description

The Neonatal Care (Leave and Pay) Bill creates two new entitlements: neonatal care leave and neonatal care pay.

Neonatal Care Leave:

Part 1 of the Schedule amends the Employment Rights Act 1996 to grant eligible employees a minimum of one week's leave if their child receives neonatal care (medical or palliative) for at least seven consecutive days within 28 days of birth. The regulations will determine the exact extent of leave, but it must be taken within 68 weeks of the child's birth. The bill ensures that employees retain most employment rights during this leave, including the right to return to a comparable job.

Neonatal Care Pay:

Part 2 amends the Social Security Contributions and Benefits Act 1992 to introduce statutory neonatal care pay. Eligibility requires at least 26 weeks of continuous employment and earnings above a specified limit. The amount and duration of pay are to be determined by regulations, but will be at least 12 weeks. The pay is designed to be linked to the existing statutory maternity, paternity, and adoption pay schemes.

Further Amendments:

Part 3 makes consequential amendments to various acts, including the Social Security Act 1989, the Finance Act 1989, and the Employment Rights Act 1996, among others, to ensure consistency and compatibility with existing legislation concerning parental leave and pay.

Government Spending

The bill will increase government spending due to the introduction of statutory neonatal care pay. The exact cost is not specified in the bill itself and will depend on the regulations setting the rate and duration of the pay.

Groups Affected

• Parents and carers: Will benefit from additional leave and pay, enabling them to care for their newborns receiving neonatal care.
• Employers: Will face additional costs associated with providing neonatal care pay and managing leave entitlements.
• Government: Will incur increased expenditure to fund the neonatal care pay scheme.

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