Terms and Conditions of Employment

Caroline Nokes Excerpts

Tuesday 11th February 2025 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I beg to move,

That the draft Neonatal Care Leave and Miscellaneous Amendments Regulations 2025, which were laid before this House on 20 January, be approved.

[Madam Deputy Speaker (Caroline Nokes)]

With this it will be convenient to discuss the following motion:

That the draft Statutory Neonatal Care Pay (General) Regulations 2025, which were laid before this House on 20 January, be approved.

[Justin Madders]

I am delighted to move regulations under the Neonatal Care (Leave and Pay) Act 2023, which originated as a private Member’s Bill in the previous Parliament. I therefore pay tribute to Stuart McDonald, the former Member for Cumbernauld, Kilsyth and Kirkintilloch East, and Baroness Wyld for successfully steering the legislation through both Houses, so that it could secure Royal Assent in 2023.

The Act established new statutory entitlements to neonatal care leave and neonatal care pay for employed parents if their child starts to receive neonatal care within 28 days of birth and goes on to spend seven or more continuous days in care. These regulations are another step towards implementing neonatal care leave and pay in April 2025, and they are the first to be brought before the House under the Act.

There is currently no statutory entitlement to such rights for parents of children who require neonatal care. Parents in this difficult situation have had to rely on existing rights, such as maternity leave or annual leave, to be there to care for their baby and to support their partner. This approach has understandably caused additional stress for parents. Some mothers report that they had to leave work because they were not ready to return at the end of their maternity leave. As paternity leave is limited to two weeks, some fathers and partners have had to rely on statutory unpaid parental leave or the compassion of their employers to take time off work.

Around 40,000 babies a year spend more than a week in neonatal care. Once provisions on neonatal care leave and pay come into force in April, we estimate that around 60,000 parents will be eligible, and that around 34,000 parents will take up paid leave each year. Neonatal care leave will enable eligible parents to take a minimum of one week’s leave and a maximum of 12 weeks’ leave, depending on how long their baby receives neonatal care, on top of their other parental leave entitlements. It will be a day one right for employees.

Statutory neonatal care pay, like other family-related pay rights, will be available to employees who also meet continuity of service and minimum earnings tests. Eligible employees must have worked for their employer for at least 26 weeks, ending with the relevant week, and earn on average at least £125 a week before tax. If eligible, a parent will be able to claim a flat rate of £187.18 a week in 2025-26, or 90% of their average earnings, whichever amount is lower.

Employers will administer the statutory payments on behalf of the Government. Small employers will be able to recover 103% of the statutory payment from the Exchequer, while larger employers can recover 92% of payments and will therefore incur wage-like costs equivalent to 8% of the statutory payments they make. This is a similar arrangement to that in place for other parental payments.

Together, these regulations will provide protection and support for parents at an incredibly challenging time. These entitlements provide a floor, and employers can and should go further if they are able.

--- Later in debate ---

[Jen Craft (Thurrock) (Lab)]

I commend the Minister for bringing the statutory instruments before the House. They introduce much-needed and long-overdue support for new families, which I am sure will be welcomed by Members across the House.

As every parent will know, the time after childbirth is a time like no other. It is both incredibly special and incomparably difficult, with lasting effects on the wellbeing of parents, carers and their babies. I pay tribute to my constituent Ashley Wiseman. In 2018, she gave birth prematurely to twins at 24 weeks. Her first child Esme was sadly born sleeping. Her second child Isla was born 50 minutes later. Isla was admitted to neonatal care at Basildon hospital before being transferred to the Royal London hospital.

Ashley met me and told me about the fear and uncertainty that she felt at that time, the impossible choice that her family faced between returning to work or being beside their sick child, and the financial burden of travelling to visit Isla once she moved to the Royal London hospital. Ashley described what we would all find impossible to imagine: long stays on the ward, some of her darkest days, and Isla being given just a 2% chance of survival. After seven months in a neonatal intensive care unit, Isla was discharged, and last month she celebrated her seventh birthday.

Out of such a traumatic and stressful time, Ashley created Isla’s Journey, a charity offering support to families of babies in neonatal wards. The charity provides care packs for new parents at over 80 NICU wards across the UK. That simple support makes a huge difference to families by allowing parents to spend as much time as possible beside their baby, and the changes brought forward today will achieve the same thing. By providing a statutory right to paid leave for working families with babies in neonatal care, the regulations will remove the unimaginable and impossible choice for new parents of either returning to work to pay their bills or staying beside their desperately ill child.

It is difficult enough to have a child in the neonatal intensive care unit. Parents being with their new baby in the early days is vital for their mental and emotional wellbeing, as well as for the early life chances of the baby. The benefits of things like skin-to-skin contact and those early bonding experiences cannot be overstated, and that sometimes feels like an impossible task for parents whose baby is in the NICU. This legislative change removes one of those barriers to these early experiences being a joyful time for parents whose babies have an extra way to go when they are first born.

As Ashley and other parents can attest, there is still more to be done. For example, Isla’s Journey advocates for a travel support fund for parents, because when a child is admitted to a neonatal ward miles from home, parents have to make long and costly journeys to spend time with their baby. While the new regulations will take away the compounding financial burden of a loss of income, the travel still comes at a significant cost. Unless they are an in-patient, mothers and other parents are not provided with basic amenities, such as a meal, on the ward. When Isla was transferred to the Royal London hospital, Ashley said that it became near impossible to give her body the correct nutrition she needed to breastfeed. When her child’s life was so fragile, she often did not want to leave her side for a moment, even to find something to eat. Other parents have chosen not to eat to pay for their travel to the hospital.

While I welcome the measures the Government are taking in the statutory instruments to remove worries around leave and pay for parents at an unimaginably difficult time, I ask that the Minister takes away those suggestions for how the Government can go further and perhaps meet me and the team at Isla’s Journey to discuss measures that can make parents’ lives that little bit easier. Making those changes would improve the wellbeing of families with babies in the NICU and the life chances of those babies so that parents could focus on what truly matters most to them: the care of their child.

[Madam Deputy Speaker (Caroline Nokes)]

Order. Before I call the Liberal Democrat spokesman, I remind the House that it is courteous for Members who wish to speak to be present for all the opening speeches.