The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jane Hunt)

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I thank the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) for bringing forward this important Bill, and I thank all hon. Members who have spoken on this important matter today. I am pleased to confirm that the Government will support the Bill.

As a mother myself, I know exactly how incredible that moment is when your baby is born. It is a time that should be full of joy and excitement. It must be devastating to see your baby whisked away and in need of urgent medical care, yet feel unable to do anything about it except be there. I can only offer my full support to all those who have experienced that.

That is why I am pleased to be here today and pleased to have taken on this important portfolio. I am deeply committed to ensuring that the UK is the best place in the world to work and grow a business. We need a strong and flexible labour market that supports participation and economic growth. I take this opportunity to thank my predecessor, my hon. Friend the Member for Sutton and Cheam (Paul Scully)—

The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)

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Top man.

Jane Hunt

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Absolutely, and he is now a Minister of State at the Department for Levelling Up, Housing and Communities. I think hon. Members will agree that he is a committed and compassionate Minister, and I am pleased to be following him and moving this agenda forward—I will have to work very hard indeed to do so. I also thank the all-party parliamentary group on premature and sick babies, and in particular its chair, the hon. Member for Glasgow East (David Linden).

Neonatal care leave and pay will enable thousands of parents to care for and be with their children in neonatal care without worrying about whether their job is at risk. I am pleased to see that the Bill has support across the House, as has been reflected in the debate—I thank everybody very much. I will take time to address some of the points raised by hon. Members, but first let me put on the record why the Government support the Bill.

As the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East explained, every year in the UK, an estimated 100,000 babies are admitted to neonatal care following their birth, for a range of medical reasons. The United Kingdom has a range of generous entitlements and protections designed to support parents to balance their family and work commitments and maintain their place in the labour market while raising their children. However, for parents in the worrying position of having their newborn admitted to neonatal care, it is clear that the current leave and pay entitlements do not provide adequate support.

In an Adjournment debate on 9 February, my hon. Friend the Member for Thornbury and Yate (Luke Hall) said:

“The current system is also a massive barrier for fathers and non-childbearing parents in particular. Earlier this week, 75% of parents who responded to a survey from Bliss, the incredible charity, said that they or their partner went back to work before their baby was home from hospital. Some of those children will still have been on ventilation and receiving critical care. Previous research suggests that the most common reason for that is they simply cannot afford to take more time off work. That is happening every single day, right around the country, to families of premature and sick children.”—[Official Report, 9 February 2022; Vol. 708, c. 1054.]

That is why we are here today and have been able to come to an agreement. The Government have previously consulted on the issue. In March 2020, we committed to introducing a new entitlement to neonatal leave and pay. We are pleased to support the Bill, which will bring that policy into effect.

I will address some of the specific points that hon. Members have made. First, I thank the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East for bringing forward the Bill, and my hon. Friend the Member for Thornbury and Yate for bringing his personal experience so emotionally and compassionately to the Chamber. My hon. Friend the Member for Hartlepool (Jill Mortimer) talked particularly about fathers. I absolutely support what she said about giving extra time to both parents to be there for their child. I will refer to some of the points raised by the hon. Member for Ayr, Carrick and Cumnock (Allan Dorans) later.

The hon. Member for Glasgow East also talked movingly about his personal experience. The hon. Member for West Ham (Ms Brown) mentioned a specific case. My hon. Friend the Member for Watford (Dean Russell) volunteered in his own Watford hospital—a legacy for all here today, hopefully, we will provide. The hon. Member for Paisley and Renfrewshire North (Gavin Newlands) referred to his personal experience and his children, who are clearly taking after their father. On his behalf, I also thank Thomas and Steve, the employers who helped him and his wife and did all they could to support them as members of staff.

My hon. Friend the Member for Kensington (Felicity Buchan) said that the Bill is the right thing to do and talked about bonding time; we must agree that that is a vital relationship for parents at that time. She also said that good employers are already doing the right thing and helping with newborn children. This Bill is a floor, not a ceiling. I want to ensure that everybody gets a good level of care, and other businesses may be able to put something on top of that, as she said.

I will refer to the point made by the hon. Member for Newport West (Ruth Jones) later. Madam Deputy Speaker, who is no longer in her place, talked about what happened to her and the stressful time that she had in more ways than one. The hon. Member for Bristol East (Kerry McCarthy) pointed out that the child is often not the only child in the family, which must be considered. There were also many helpful and supportive interventions from hon. Members on both sides of the Chamber.

My hon. Friend the Member for Thornbury and Yate raised concerns about the length of time that it would take for the Bill to be implemented. There is clearly cross-party support for the Bill and we hope that it will complete its parliamentary passage and receive Royal Assent as swiftly as possible. Setting up a new leave and pay entitlement takes time. It requires secondary legislation and changes to Government systems that administer statutory payments, and businesses need good notice in order to prepare. HMRC and commercial payroll providers require at least 18 months’ lead time to implement such changes following Royal Assent. I spoke with my officials this week, however, and we are looking at what we can do to speed that up. I note that the hon. Member for Glasgow East, my hon. Friend the Member for Charnwood (Edward Argar), the hon. Member for Newport West all requested that.

Jane Hunt

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That is a good idea, and I will take that up.

My hon. Friend the Member for Thornbury and Yate also raised concerns about why seven full days of neonatal are required before the entitlement is triggered. In response, I flag that the policy is primarily intended to support parents of babies facing longer stays in hospital and that the needs of parents in that position must be balanced against those of their employer. When developing the approach, the responses from parents, parent representative groups and business representatives to the 2019 consultation on neonatal leave and pay were considered.

Jane Hunt

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I absolutely will take that away.

The hon. Member for Ayr, Carrick and Cumnock referred to other family leave and pay entitlements. Parents have access to a range of pay and leave entitlements in their child’s first year, giving working families more choice and flexibility about who cares for their child and when. Our maternity leave entitlement is generous. To qualifying employed women, we offer 52 weeks of maternity leave, of which 39 are paid. That is more than three times the EU minimum requirement. For self-employed women, and those who are not eligible for statutory maternity pay, maternity allowance may be available. Both maternity payments are designed to provide a measure of financial security to help women to stop working towards the end of their pregnancy and in the months after childbirth in the interests of their and their baby’s health and wellbeing.

We also recognise that fathers and partners play a crucial role in the first year of their child’s life, both through supporting the mother and by developing a relationship with the child. Paternity leave arrangements enable employed fathers and partners who meet the qualifying conditions to take up to two weeks of paid leave within the first eight weeks following the birth of their child or placement for adoption. We recognise, however, that paternity leave can be improved, so we made a manifesto commitment to make it easier for fathers and partners to take it. We will announce how we will be doing that in due course.

Shared parental leave and pay provides parents with flexibility over their child’s care in the first year. It challenges the assumption that the mother will always be the primary carer and enables working parents to share up to 50 weeks of leave and up to 37 weeks of pay in the first year of their child’s life. That enables mothers who want to return to work early to do so and enables fathers and partners to be their child’s primary carer if the parents wish. To help make shared parental leave more accessible, we launched an online tool last year that allows parents to check their eligibility and plan their leave. We are evaluating the shared parental leave scheme and will publish further findings in due course.

The hon. Member for Bristol East queried the length of time it has taken to legislate and deliver this entitlement. In 2019, the Conservative party manifesto committed to introducing neonatal leave care and pay. We consulted on the details and published a response in 2020. During covid, the Government rightly prioritised our response to the pandemic. We are pleased that the neonatal care leave and pay entitlement is now being taken forward in legislation and fully support this Bill.

Jane Hunt

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Absolutely, and I thank the hon. Gentleman very much for that intervention. That is absolutely spot-on and correct, and I fully support everything he said.

In conclusion, these measures would provide invaluable support and protection for parents during some of the most stressful days of their lives when their children are in neonatal care. That entitlement is also backed by Government evidence and analysis, showing a clear need for further support for those parents. Therefore, the Government are pleased to support the Bill. Supporting the Bill is in line with our ongoing commitment to support workers and build a high-skilled, high-productivity, high-wage economy. It is good to see support from across the political spectrum for this important measure, as is clear from the debate. I look forward to continuing to work with the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East to support the passage of the Bill.

The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Jane Hunt)

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It is a pleasure to serve under your chairmanship, Ms Bardell. Introducing neonatal care and leave through the Bill will mean that parents will not have to worry about work when they face the stress and anxiety of caring for a sick baby. It will at least relieve them of one concern at such a very difficult time.

On Second Reading, we heard from Members on both sides, some of whom are serving on the Committee today, about their personal experiences of having children in neonatal care. Again, I thank the hon. Member for Glasgow East and my hon. Friend the Member for Thornbury and Yate, among others, for sharing their personal experiences; that was very much appreciated and I am sure it made a difference on Second Reading. Both Members talked movingly about their personal experiences and explained how incredibly worried they felt when their children were in neonatal care. The Government are keen to offer families in such difficult circumstances our full support, and I am pleased to be here today to reiterate that the Government fully support the Bill.

I would like to touch on the two amendments proposed by the Bill’s promoter. The first would amend clause 2 to remove a power to amend primary legislation by secondary legislation, a so-called Henry VIII power, and replace it with a power to amend secondary legislation only. As the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East—I have now managed to say his constituency name correctly—points out, the need for that Henry VIII power has passed. Issues with how the entitlement might interact with other legislation that might be forthcoming have been resolved. That being the case, I am in favour of the clause being amended to limit the effect of the power and agree that the amended clause should stand part of the Bill.

The second amendment proposed by the sponsor is to make changes to the relevant week used to calculate pay. Again, I support that change. I agree with the sponsor’s detailed explanation on the need for the amendment, which will ensure that parents who are already low earners do not miss out on the entitlement to statutory neonatal care pay. I therefore support the amended schedule, which should stand part of the Bill. I also agree that clauses 1 to 3 and schedule parts 1 to 3 should stand part of the Bill.

The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kevin Hollinrake)

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I thank the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) for all his work in bringing forward this very important legislation. It is a great honour to bring forward a private Member’s Bill. I have been lucky enough to bring forward two: one on guardianship, and one that sadly has a connection with this Bill, on parental bereavement, of which the hon. Member was very supportive. It is not just a great honour; it is a great deal of work, and I pay tribute to him for all his work on this Bill over the last month. We often get asked when we bring forward new measures such as this, “Does not that exist already?” When we get that reaction, it is time we moved quickly to bring the legislation forward. I thank him and all Members who have spoken on this important matter today.

I also thank my predecessors. I have only been in this role a short time, which has been a common feature of small business Ministers over the last three months. Many of my predecessors have done hugely important work on this issue, not least my hon. Friends the Members for Sutton and Cheam (Paul Scully), for Loughborough (Jane Hunt) and for Watford (Dean Russell). I thank my hon. Friend the Member for Watford for his contribution today and his wholehearted support for this Bill and the next Bill that we will consider, the Employment (Allocation of Tips) Bill. I know he is keenly awaiting that debate, as is the Bill’s promoter, my hon. Friend the Member for Ynys Môn (Virginia Crosbie). It is another important piece of legislation.

The Government are deeply committed, as I am, to ensuring that the UK is the best place in the world to work and grow a business. We need a strong and flexible labour market that supports participation and economic growth. The Neonatal Care (Leave and Pay) Bill will enable thousands of parents to care for and be with their children in neonatal care without worrying about whether their job is at risk. The Bill is supported across the House, and I was pleased to see that support reflected in today’s debate.

I wish to put on record the Government’s reasons for continuing to support the Bill, but let me first pick up a couple of points that hon. Members have raised. The shadow Minister—the hon. Member for Putney (Fleur Anderson)—and the hon. Member for Pontypridd (Alex Davies-Jones) spoke about other measures that we might take forward in the employment Bill or by other means. The hon. Member for Pontypridd spoke very movingly, for which I commend her, but I think she said that the Government were eroding workers’ rights. I cannot think of anything further from the truth.

Let me set out some measures that the Government are taking, other than in this legislation. They are all measures for which I am responsible as a Business Minister: making flexible working a day one right, as we intend; allowing all workers a week of carer’s leave; providing more protections for people who are pregnant or returning to work from pregnancy or paternity leave; the tips Bill—

Kevin Hollinrake

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We can have a good debate about this a week on Monday, but the Opposition parties seem to be arguing simultaneously that minimum service levels exist across Europe, that strikes are happening across Europe, and that the two things are incompatible. Clearly we are not taking away the right to strike: we know that nurses have voted to strike on 7 and 8 February. We are simply saying, “Yes, you can strike, but put a voluntary agreement in place to have minimum service levels,” as the nurses do—a derogation, as they call it. The two things are not incompatible.

Kevin Hollinrake

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I do apologise, Mr Deputy Speaker. Several Members referred to the matter in this debate, so I felt I needed to address it, but under your instructions I will move on. Other Government measures, of course, include increasing the national living wage to £10.42, which we shall do very shortly—so we have a number of measures to strengthen workers’ rights rather than reducing them.

As the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East explained, an estimated 100,000 babies in the UK are admitted to neonatal care every year following birth, for a range of medical reasons. As my hon. Friend the Member for Cheadle (Mary Robinson) said, tens of thousands of children are in neonatal care for a week or longer, so the issue clearly affects many, many parents. In 2018, our study identified that 37,400 children were in neonatal care for more than a week after birth, so it is clearly a hugely important issue.

The United Kingdom has generous entitlements and protections designed to support employed parents to balance their family and work commitments and maintain their place in the labour market while raising their children. However, for parents who are in the worrying position of having their newborn admitted to neonatal care, it is clear that the current leave and pay entitlements do not provide adequate support. The Government consulted on the issue, and in March 2020 we committed to introducing a new entitlement to neonatal leave and pay. We are therefore pleased to support the Bill, which will bring that policy into effect.

As the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East set out, the Bill will provide a statutory leave entitlement that protects employees against any detriment. Many considerate employers provide that anyway, but the Bill will ensure that the minority who perhaps do not must do so in future. The Bill gives a day one right to leave to anyone with a child in neonatal care for seven full days of continuous care. It is a right to pay based upon continuity of service.

I will touch on some points made by Members, but I first thank my hon. Friend the Member for Thornbury and Yate (Luke Hall) for his work on this Bill. The issue was first introduced to the House in an Adjournment debate, which was responded to by my hon. Friend the Member for Sutton and Cheam. I know the hon. Member for Pontypridd has campaigned long and hard on this issue, as has the hon. Member for Glasgow East (David Linden), who chairs the all-party parliamentary group on premature and sick babies. We should pay tribute to all those people.

Many Members in this debate and previous debates have spoken about their personal experiences very movingly. I am the father of four children; our first child was in neonatal care, as he was very jaundiced when he was born. That is a massive worry for any parent. It is not just about the jaundice, as there can be other health implications including deafness. For the first child it is even more worrying. All those contributions resonated with me and, I am sure, others in the House.

The hon. Member for Cheadle rightly thanked the charity Bliss and other charities that support families through their difficult time. The hon. Member for Pontypridd also thanked the charity Bliss. She is vice-chair of the all-party parliamentary group on premature and sick babies. I thank her for her work on that. She directed the House’s attention to her personal experience of this issue, as her son was born prematurely. I am grateful that her husband’s employer was flexible.

My hon. Friend the Member for Watford showed huge empathy, as always, for parents who go through that experience. He has much experience with the issue, having been the Minister in the Bill Committee at one point. He emphasised the impact that having a premature or poorly baby has on parents’ mental health. This Bill will massively help ease anxiety. The shadow Minister, the hon. Member for Putney, and the hon. Member for Pontypridd asked how long it has taken to introduce the Bill to the House. Legislation is never that speedy—only in emergency times, perhaps. This legislation was a 2019 manifesto commitment, and in 2020 we conducted a consultation. Clearly, there have been other issues that we have had to deal with over recent years, but we are keen to expedite this legislation and we are pleased to see it passing through its final stages in the House.

The shadow Minister also asked about a single enforcement body. We have this matter under review, but she can see that a tremendous amount of work is happening on other legislation that we are keen to bring forward. I am happy to have a conversation with the hon. Lady at any time about other measures that she would like us to implement. My hon. Friend the Member for North Devon (Selaine Saxby) emphasised how the Bill will benefit fathers and non-birthing partners, as they will have leave to spend time with their child in hospital. She spoke of the benefits to businesses, as they will be able to reclaim the money via HMRC and have less financial burden.

My hon. Friend the Member for North East Bedfordshire (Richard Fuller) raised interesting points, as always. I was pleased to hear him talking about the potential impact on business. It is right that we consider that. We ask businesses to do more and more for employees, quite rightly. Nevertheless, we should always consider the impact. He talked about the impact assessment, which states that the financial impact on business is estimated at around £22 million per annum. That is an insignificant amount, and it is right to consider that, but on balance is the right thing to do.

My hon. Friend questioned why it costs £5 million for HMRC to set up the entitlement. That is a good question. As he said, I do not look after HMRC directly, but I am told that they need to update their IT systems and support employers and payroll providers to do the same. This is a sizeable project that is primarily a matter for HMRC and the Treasury, so he may want to ask a Treasury Minister. He also asked about the assessment of legal risk if employers do not claim at the time but claim later. The regulations will specify how long an employee has to claim entitlements to leave and pay, but the Bill specifies that it cannot be less than 68 weeks after the birth of the child. When it comes to pay, there is a power in the Bill that could require someone to still be employed by the same employer when the claim for pay starts. We acknowledge the point that my hon. Friend makes and it will be considered carefully when the regulations are drafted.

Kevin Hollinrake

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I am grateful to my hon. Friend for his comments and I agree we should make the process as easy as possible to ease the burden on businesses. That is certainly something we will look at within the regulations.

We will also look at the definition of neonatal in the regulations, but hospital and outreach care and, tragically—as hon. Members have said—perhaps palliative care would be the key areas. The hon. Member for East Dunbartonshire (Amy Callaghan) told the moving story of her friend Kirsty, whose daughter needed neonatal care. My hon. Friend the Member for Ynys Môn shared her own experiences of a child who spent time in neonatal care.

My hon. Friend the Member for Wantage (David Johnston) mentioned bags of sugar—I think bags of sugar are 2.2 lb each—and spoke about the other measures the Government are taking to improve workers’ rights. My hon. Friend the Member for Clwyd South (Simon Baynes) also paid tribute to the Bliss charity’s campaigning on this issue. My hon. Friend the Member for Sedgefield (Paul Howell), even without notes, spoke about the charity Leo’s, named after a baby who tragically died.

Without further ado, the Government are supporting this Bill in line with our ongoing commitment to support workers and build a high-skilled, high-productivity, high-wage economy. It is good to see support in the House from across the political spectrum for this important measure, as is clear from this debate.

In conclusion, I thank civil servants who worked on the Bill: Rosie Edmonds, Tolu Odeleye, Roxana Bakharia, Abi Bridger, Bryan Halka, Jayne McCann and Cora Sweet, who is in the officials’ box today. I look forward to continuing to work with the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East to support the passage of these measures.