Neonatal Care (Leave and Pay) Bill

Stuart C McDonald Excerpts

2nd reading
Friday 15th July 2022 Commons Chamber

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

After such a smooth start, it is good to see you in your place, Madam Deputy Speaker. It provides me with an opportunity to thank you for and congratulate you on your flawless oversight and running of the private Members’ Bill ballot. Indeed, you showed impeccable taste even when picking numbers out of the hat. Seriously, however, you can be very pleased with the range of Bills before Parliament today.

I also welcome the new Minister, the Under-Secretary of State for Business, Energy and Industrial Strategy, the hon. Member for Loughborough (Jane Hunt), to her place and wish her well. I was grateful to meet her predecessor and his officials to discuss the Bill and work together on it, and I appreciate the new Minister having ensured that that work can continue in the week since her appointment. I hope that she is as enthusiastic about this Bill as both her predecessor and I am—I am sure she will be and, from our first discussions, I know that she definitely is.

We should all be enthusiastic about this brilliant Bill, which I know will make such a huge difference to tens of thousands of families each and every year. That is because it paves the way for the introduction of neonatal care leave and pay. I am grateful to all the hon. Members in the Chamber for being here to consider this proposal and, I very much hope, to support it. We will never be able to get rid of the stress, anxiety, doubts, questions and trauma that so many families experience when their baby is in neonatal care, but what we can and must do is help to relieve some of the practical and financial challenges that accompany that experience.

[Hannah Bardell (Livingston) (SNP)]

I am delighted to see the Bill come to the Floor of the House, and I know that other hon. Members have sought to bring it previously and have done a huge amount of work in this area. I hope that the Government put their full weight behind it. My constituent Coady Dorman does a lot of work with Bliss, as my hon. Friend will know. She had a premature son, Matthew. He is now thriving, but she spoke about the months she spent going to see him in neonatal care and how different the experience was, and how different maternity leave was after that. She told of the stress and strain of having to worry about money all during that time. My hon. Friend’s Bill will, we hope, take away some of that stress.

[Stuart C. McDonald]

I am grateful to my hon. Friend for that intervention. Hearing about those experiences is precisely what has prompted my bringing this Bill forward today. Campaigns groups such as Bliss and The Smallest Things, which I will come to in a moment, have really driven this forward. As she alluded to, there are Members in the Chamber today with personal experience of having a baby in neonatal care, which makes them the best advocates for this cause so I am grateful for their participation. Many of them, such as my hon. Friends the Members for Glasgow East (David Linden) and for Paisley and Renfrewshire North (Gavin Newlands), and the hon. Member for Thornbury and Yate (Luke Hall), have been passionate and articulate campaigners for reform for a considerable time.

I am pleased to say that we are joined in the Gallery today by people from Bliss and The Smallest Things, representing families who have direct experience of the challenges around neonatal care; I am immensely grateful to them and so many other organisations and individuals for their help and support in taking this Bill forward and for the campaign they have been driving since long before I was elected to this place. I hope that the families with lived experience of neonatal care who are watching today will be satisfied that we have represented the issues they have faced, and are facing now, with the careful consideration and compassion they deserve.

The Office for National Statistics reports that an estimated 100,000 babies every year across the UK are admitted to neonatal care following their birth. Many of those babies spend prolonged periods of time on a neonatal care unit in a hospital as a result of being born prematurely or with other health conditions. That is, of course, an incredibly worrying and stressful time for parents, and their extended families. All our hearts go out to everyone who has found themselves in that position. Parents will naturally want to be able to focus their attention simply on getting through that period, supporting each other and their newborn. There is an emotional imperative to be with their babies, but there is also a practical one: those vulnerable, little children need their parents, and those parents need to be with their wee ones. As the charity Bliss has highlighted,

“parental presence on a neonatal unit is essential. Babies have the best developmental outcomes when their parents can deliver hands-on care.”

However, some families struggle to do that while keeping in employment and earning a living. Fathers get two weeks of statutory paternity leave. That is good, but when those two weeks run out, they must be called back to work while their baby is still in hospital. How can any parent be expected to focus at work while their sick baby is undergoing life-saving, life-changing neonatal care?

When babies have an extended stay in hospital at the start of their life, mothers report that 39 weeks of paid maternity leave does not give them enough time. That gets used up during the neonatal care and they do not feel that they have enough time at home with their baby before they need to go back to work. Some mothers may choose to leave work as a result. Indeed, research by The Smallest Things shows that one in 10 mothers were not able to return to work due to the ongoing needs of their babies who had required neonatal care.

That research also highlights two incredibly concerning statistics, which are perhaps unsurprising given the emotional trauma of a baby being born premature or sick. The charity reports that 77% of parents said they experienced anxiety after neonatal care, and that nearly a quarter had been diagnosed with post-traumatic stress disorder after neonatal intensive care. In short, The Smallest Things concludes that we need to strengthen the statutory rights and support offered to these parents because that

“would give parents the emotional and financial support needed at a time of great stress and trauma – in turn leading to better postnatal health, a more positive return to work and better outcomes for children born prematurely.”

[Carol Monaghan (Glasgow North West) (SNP)]

I commend my hon. Friend for bringing forward this really important Bill. I got in a taxi the other day that was driven by one of his constituents who said that his baby had spent nearly three months in hospital having been born prematurely. His employer was not at all helpful, so he had to go back to work after his two weeks’ paternity leave. It was incredibly stressful—everything my hon. Friend is talking about rings really true—and he ended up having to leave that employment because being with his wife and baby was far more important. That is why the Bill is so important for families.

[Stuart C. McDonald]

I am grateful to my hon. Friend. There are employers out there who already provide this support for their employees, and they are to be commended. Unfortunately, though, as we have heard, there are too many who do not. Sometimes fathers are forced to use sick pay for extended periods, which is far from ideal, and on other occasions, as we have just heard, people are forced back to work.

At an incredibly distressing time when these families need each other the most, we should be doing what we can to support them and allow them to spend that precious and vital time with their babies. As Bliss has highlighted, the main reason why parents on maternity leave return to work before they are ready, and why parents taking paternity leave return to work while their baby is still in neonatal care, is financial pressure.

Bliss estimates that the additional cost of a neonatal stay is around £250 per week by the time we factor in travel costs, buying food and drink at the hospital, extra childcare, and even accommodation costs if the hospital is far from home. That is obviously a significant financial burden, and I am very glad that it was recognised by the Scottish Government when they established the neonatal expenses fund—now the young patients family fund—in 2018.

The Bill will create a new statutory leave and pay entitlement for the parents of babies receiving neonatal care. Employed parents who find themselves in this immensely challenging situation in the future will know that, as a minimum, they are entitled to time off work to care for their babies, and that they will not suffer any repercussions as a result. Crucially, the Bill will allow parents to have protected time off work to care for their children at such a difficult time.

[Darren Henry (Broxtowe) (Con)]

I thank the hon. Gentleman for bringing the Bill forward. I want to express how I much I support what he is trying to do. As somebody who was employed when my wife, who is also a constituent of Broxtowe, had our twin children, who were six weeks premature and one of whom spent three weeks in neonatal care, I strongly support the hon. Gentleman’s Bill.

[Stuart C. McDonald]

As I said, the best arguments come from those with direct experience—they are the most powerful advocates—so I am really grateful to the hon. Gentleman for staying behind this morning and lending his support.

As I said in response to the intervention from my hon. Friend the Member for Glasgow North West (Carol Monaghan), there are some brilliant, supportive and flexible employers out there, such as those who are signed up to The Smallest Things’ “Employer with Heart” charter. I take this opportunity to commend them and ask them to continue to support their employees when these circumstances occur. However, we all know that there are employers who are not as forward thinking—some cannot afford to be—and it is those employers, and the parents who work for them, that we will need particularly to consider when introducing the provisions of the Bill. In short, that is why neonatal care, leave and pay entitlement is not just desirable, but essential to protect and support parents at this very difficult time.

Let me explain to the House in a bit more detail what the Bill and the powers it sets up are designed to achieve. Much of the framework and terminology borrows from other related statutory rights ensuring consistency, compatibility and, hopefully, ease of implementation. I am grateful to parliamentary counsel for their work in drafting the Bill to reflect the important policy goals. Neonatal care, leave and pay will apply to parents of babies who are admitted into hospital at the age of up to 28 days and who have a continuous stay in hospital or in other agreed care settings of seven full days or more. It is intended that eligible parents will be able to take up to 12 weeks of paid leave on top of their other parental entitlements, such as maternity or paternity leave. Neonatal care leave will be a day one right—available to an employee from their first day in a new job. Statutory neonatal care pay, like other family-related pay rights, would be available to those employees who meet continuity of service and a minimum earning test.

Parents will have an entitlement to up to 12 weeks of neonatal care leave—one week for every week that the child spends in neonatal care. That leave will be protected, and a person should not suffer any form of detriment due to taking that leave. As I have said, statutory neonatal care pay will be available to employees who meet continuity of service and minimum earnings tests, and it will be paid at the statutory rate, which is currently £156.66 or 90% of the employee’s average wages, whichever is lower, and that should be uprated in line with increases to statutory payments. That mirrors the existing family leave in pay provisions such as paternity, shared parental, adoption and maternity pay after the first six weeks. Employers will be able to reclaim spending on neonatal pay in a manner similar to other statutory payments.

It is expected that some parents, such as fathers who have only two weeks of paternity leave, may want to take their neonatal leave while their child is still in neonatal care. However, once maternity leave commences, a mother cannot stop it to take neonatal care leave, or she will lose her remaining maternity leave rights. Neonatal care leave will therefore be flexible so that mothers can add it to the end of their maternity leave and other forms of parental leave that they may be entitled to. That flexibility allows an employee to take the leave at a time that best suits them when their child is receiving or has received neonatal care. With that in mind, the Bill provides for the window of time within which neonatal care leave can be taken to be set out in regulations. That will be a minimum of 68 weeks following the child’s birth, ensuring that mothers and fathers have sufficient time to take their neonatal care leave alongside other leave rights that they may be entitled to, rather than having to lose out on any such entitlements.

I do not aim to persuade Members that every single aspect of the design of the scheme is perfect—of course there are arguments that it might not be. There are debates to be had about statutory rights and entitlements and support for the self-employed or workers who are not technically employees. We can debate whether neonatal pay, like leave, should be a day one right. Some might ask whether we should raise levels of statutory entitlements. While 12 weeks of leave and pay will cover the overwhelming majority of cases, others might ask if we can go further.

First, it is important to remember that the Bill and the regulations will set out minimum standards for neonatal leave and pay. Employers can and do already go beyond them, and we encourage them to continue to do that. In any event, while those are all fair questions and issues, they are for another day and relate to statutory rights more generally, not the principle behind introducing this new right.

Today, I hope we will take a significant step forward in expanding the range of statutory family rights to leave and pay—a step that will make a big difference to tens of thousands of families every year for generations to come. There is overwhelming support for this change from families, trade unions, health professionals and employers, and Members of Parliament from all corners of the House support it, too. Indeed, it is a rare and remarkable Bill that will at one and the same time deliver on a specific manifesto commitment of the Conservative party and the SNP.

No more should we be leaving parents to use up maternity and paternity leave travelling great distances to a neonatal ward. There should be no more forcing fathers back to work after two weeks with their newborn still on a ventilator, separating families at a crucial time, no more leaving mum to cope on a neonatal ward facing significant decisions alone and no more depriving babies in neonatal units of the support of both their parents. There should be no more making parents choose unnecessarily between being with their newborn baby in hospital and being able to secure an income through work. This Bill will help thousands of parents each year to spend more precious time with their premature and sick babies, so we need this Bill to succeed for them.

To conclude, I hope that hon. Members on both sides of the House share my desire to ensure that the Bill succeeds. Collectively, we have an opportunity to effect real change. It is our duty to ensure that those who will have to rely on such provision are fully able to do so.

--- Later in debate ---

[Stuart C. McDonald]

May I say how grateful, and indeed humbled, I am with the way Members have spoken so passionately, coming together unanimously to support the Bill? I was optimistic about support for the Bill, but it has taken my breath away. Indeed, the hon. Member for Watford (Dean Russell) has suggested a visit to my constituency, and the talented former Minister, the hon. Member for Charnwood (Edward Argar) requested to serve on the Bill Committee. The answer, of course, is yes, particularly if he can bring a friend. There was even a welcome and powerful intervention from you, Madam Deputy Speaker, which we all appreciated.

Many Members raised similar points, which is testimony to the work of charities such as Bliss and others, how they have advocated for this case, and how we have all become familiar with the arguments in favour of the Bill. Many other sensible points have been added, which it was remiss of me to miss out in my opening speech. One of those was about the benefit to employers. Employers are overwhelmingly in support of these measures. They appreciate that having folk at work who have kids in neonatal care is of no use to them, and they end up managing it through sick pay and other means, rather than through proper statutory leave.

Finally, it is so important to welcome and highlight the fantastic work of staff in neonatal units up and down the country, and I look forward to visiting the constituency of my hon. Friend the Member for Motherwell and Wishaw (Marion Fellows) to see that at first hand. As I said at the outset of the debate, the best advocates for this cause are those who speak from personal experience. I am particularly grateful to MPs who have spoken from that point of view today, and I look forward to working with them all in the weeks ahead to as the Bill continues its passage through the House.

Question put and agreed to.

Bill accordingly read a Second time; to stand committed to a Public Bill Committee (Standing Order No. 63).

Neonatal Care (Leave and Pay) Bill

Stuart C McDonald Excerpts

Committee stage
Wednesday 7th September 2022 Public Bill Committees

[The Chair]

With this it will be convenient to discuss the following:

Amendment 1, in clause 2, page 1, line 9, leave out subsection (2).

This amendment would exclude provision amending or repealing an Act of Parliament from the scope of the power in clause 2 to make consequential provision.

Amendment 2, in clause 2, page 1, line 13, leave out subsection (4).

This amendment is in consequence of Amendment 1.

Amendment 3, in clause 2, page 1, line 17, leave out “Any other” and insert “A”.

This amendment is in consequence of Amendment 1.

Clauses 2 and 3 stand part.

Amendment 4, in the schedule, page 6, line 40, leave out subsection (6) and insert—

“(6) In this section the ‘relevant week’—

(a) in any case where the person is entitled to statutory maternity pay under section 164 in respect of the child, is the week immediately preceding the 14th week before the expected week of confinement (within the meaning of Part 12);

(b) in any case where the person is entitled to statutory paternity pay under section 171ZA (birth) in respect of the child, is the same week as the relevant week for the purposes of section 171ZA(2) in that case;

(c) in any case where the person is entitled to statutory paternity pay under section 171ZB (adoption) in respect of the child, is the same week as the relevant week for the purposes of section 171ZB(2) in that case;

(d) in any case where the person is entitled to statutory adoption pay under section 171ZL in respect of the child, is the same week as the relevant week for the purposes of section 171ZL(2) in that case;

(e) in any other case, is the week immediately before the one in which the neonatal care starts.”

This amendment provides for the “relevant week” in section 171ZZ16 (for the purpose of determining whether particular conditions relating to eligibility for statutory neonatal care pay are satisfied) to, in cases where an employee is entitled to another type of statutory family pay, align with the week that is relevant to that entitlement.

That the schedule be the schedule to the Bill.

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

Thank you very much, Ms Bardell. It is great to see you in the Chair, and this is the first time that I have had the pleasure of serving under your chairmanship. May I also say that it is a pleasure to see the Minister in her place? I cannot always say that about Ministers in this particular Government, but I genuinely mean that. I am very grateful to her and her predecessor and to their officials for all their co-operation and support as the Bill has progressed.

I also thank all hon. Members for giving their time this morning to take forward debate on the Neonatal Care (Leave and Pay) Bill. I appreciate that this is a busy morning, with lots happening. I think that we have already lost one Committee member to promotion, so I will not take it too personally if one or two members are keeping a close eye on their phones just in case a call comes. I again express particular thanks to my hon. Friend the Member for Glasgow East and the hon. Member for Thornbury and Yate, not just because they have been committed campaigners for neonatal care leave and pay for a considerable time, but also for their significant assistance in getting the Committee spaces filled up very quickly indeed in what was a stressful 12-hour period at the end of last term.

As hon. Members know, the Bill will put on the statute book an entitlement to paid leave for employed parents of babies who require neonatal care. As Members from both sides of the House agreed on Second Reading, that has the potential to make a big difference to the experience of parents at an incredibly stressful time and to deliver positive outcomes for their children. The leave and pay will apply to eligible parents of babies who are admitted to hospital within their first 28 days of life and who have a continuous stay in hospital or other agreed care setting of seven full days or more. The intention is that such parents will be able to take up to 12 weeks of paid leave on top of their other parental entitlements, such as maternity or paternity leave and pay. There will be one week of neonatal care leave for every week that the child spends in neonatal care. That leave will be protected, and a person should not suffer any form of detriment due to taking that leave.

Up to 12 weeks of statutory neonatal care pay will be available to employees who meet a continuity of service and a minimum earnings test. Neonatal care leave will be a day one right, available to an employee from their first day in a new job. Statutory neonatal care pay, like other family-related pay rights, would be available, as I said, to those employees who meet a continuity of service and a minimum earnings test.

The Bill sets out in considerable detail the legal framework for the entitlement. Large parts of that are very similar to other leave and pay entitlements that are already in operation, to avoid adding complexity. The Bill requires regulations to provide that eligible parents can take neonatal care leave and pay within at least a 68-week window following a child’s birth. That is designed to ensure that mothers and fathers have sufficient time to take their neonatal care leave on top of or after other leave rights to which they may be entitled.

I now turn to the amendments. As an Opposition MP, I have spent a lot of time bemoaning the use of Henry VIII clauses and arguing that they should be taken out of Bills, so it is quite nice today to be able to practise what I have preached, I hope. Amendments 1, 2 and 3 modify clause 2 of the Bill to remove the power to amend primary legislation via secondary legislation—a so-called Henry VIII power. The amendments remove subsections (2) and (4) from that clause and subsequently modify the text in subsection (5). Taken together, the amendments have the effect of changing the Henry VIII power to a power to amend secondary legislation only, which is of course common in primary legislation.

The Henry VIII power was originally included to ensure that the Bill, if it was successful in gaining Royal Assent, worked effectively alongside other legislation going through Parliament at the same time, in particular the Carer’s Leave Bill, which is being taken through by the hon. Member for North East Fife (Wendy Chamberlain). On further assessment and examination, it is not thought that the power is required any more. On that basis, I invite the Committee to accept the amendments.

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[David Linden (Glasgow East) (SNP)]

What a shame.

[Stuart C. McDonald]

I will simply commend part 3 to the Committee. I thank Members for their indulgence.

[Luke Hall (Thornbury and Yate) (Con)]

I am pleased that we are back here so soon after Second Reading. It is just a couple of days after recess, which shows how important it is to get a good position on the private Members’ Bill ballot. Again, I thank the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East for supporting the Bill and bringing it forward in the way he has. Today he has given a very comprehensive overview of the clauses and the amendments proposed.

I want to make a couple of very quick points. First, amendment 4 is very positive and makes complete sense. I thank the Minister for bringing it forward and supporting it. It will change the details around the qualifying criteria for neonatal care pay. I know there was concern raised by a couple of groups over the summer that certain parents, including women who were on statutory sick pay in particular, would be disadvantaged by the implementation of the Bill as it was drafted. The amendment makes a sensible change and brings the qualifying rules in line with maternity, paternity and adoption pay. It will hopefully receive unqualified support.

I also want to thank the Minister for the work she did over the summer looking into the point I raised on Second Reading about the seven-day trigger. I know it is a small point, but I was grateful that she took it away, looked at it and made sure the drafting was right. I am pleased to hear that it is, and I understand the reasons why it would not have been productive to have changed that in Committee today.

Lastly, I am slightly concerned about some of the noises that are coming out of the Department for Business, Energy and Industrial Strategy about the implementation of the Bill. I think that 18 months after Royal Assent is too long and would essentially mean we were looking at implementation in 2025. Really, when all we are talking about is the upgrading of HM Revenue and Customs systems, which we have been talking about for a year or so now, it does not seem like there is any real reason why this has to go on. I know the Minister was very sympathetic when a number of us raised this point on Second Reading, so I am sure she has been pressing the Department over the summer.

There are clear advantages to delivering the money that was set aside from 2023 as quickly as we can. It makes sense to deliver it before a general election for all sorts of reasons, but mainly we want to deliver it quickly to make sure parents are not left in an impossible situation like that which so many have found and continue to find themselves in. I know we all want to see that come to an end as quickly as possible. Will the Minister update us today or in writing on her views about when implementation is likely? I am delighted the Bill is progressing so quickly and has had such unqualified support so far. I thank all members of the Committee for their attendance and for supporting the Bill.

--- Later in debate ---

The Government continue to support the measures, which will provide invaluable support and protection for parents during some of the most stressful days of their lives, when their children are in neonatal care. Our support for the Bill is in line with our ongoing commitment to support workers and build a high-skill, high-productivity, high-wage economy, so I look forward to continued work with the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East to support the passage of the Bill. I conclude by thanking you, Ms Bardell, for your excellent chairing of the Committee. Thank you.

[Stuart C. McDonald]

I thank everyone who has contributed to the debate, and I thank the Minister again for her support for the Bill and for the amendments.

The three points highlighted by the hon. Member for Thornbury and Yate are exactly where our focus has been in discussions over the summer: amendment 4 in relation to the relevant week, the seven days—I am absolutely on the same page as him on that—and implementation. In fact, as I detect an absolute determination to get things done quickly, I think our focus should probably now be on HMRC rather than BEIS, so perhaps we can organise a cross-party delegation to HMRC at some point to make sure we are focusing on the right people.

In response to my hon. Friend the Member for Glasgow East, the first thing that I want to do is go and read the Hansard of yesterday’s debate on the devolution of employment law. He is right: there are times when we have fundamental disagreements, and we should have passionate debates and arguments, but there are good times when we are all on the same page, and it is nice to be able to work in that way as well.

I thank all Committee members for attending and for their contributions; I thank you, Ms Bardell, for your expert chairing; and I thank all supporters of the Bill, including those at Bliss, some of whom are here today—[Hon. Members: “ Hear, hear!]

Question put and agreed to.

Clause 1 ordered to stand part of the Bill.

Amendments made: 1, in clause 2, page 1, line 9, leave out subsection (2).

This amendment would exclude provision amending or repealing an Act of Parliament from the scope of the power in clause 2 to make consequential provision.

Amendment 2, in clause 2, page 1, line 13, leave out subsection (4).

This amendment is in consequence of Amendment 1.

Amendment 3, in clause 2, page 1, line 17, leave out “Any other” and insert “A”.—(Stuart C. McDonald.)

This amendment is in consequence of Amendment 1.

Clause 2, as amended, ordered to stand part of the Bill.

Clause 3 ordered to stand part of the Bill.

Amendment made: 4, in the schedule, page 6, line 40, leave out subsection (6) and insert—

“(6) In this section the ‘relevant week’—

(a) in any case where the person is entitled to statutory maternity pay under section 164 in respect of the child, is the week immediately preceding the 14th week before the expected week of confinement (within the meaning of Part 12);

(b) in any case where the person is entitled to statutory paternity pay under section 171ZA (birth) in respect of the child, is the same week as the relevant week for the purposes of section 171ZA(2) in that case;

(c) in any case where the person is entitled to statutory paternity pay under section 171ZB (adoption) in respect of the child, is the same week as the relevant week for the purposes of section 171ZB(2) in that case;

(d) in any case where the person is entitled to statutory adoption pay under section 171ZL in respect of the child, is the same week as the relevant week for the purposes of section 171ZL(2) in that case;

(e) in any other case, is the week immediately before the one in which the neonatal care starts.”—(Stuart C. McDonald.)

This amendment provides for the “relevant week” in section 171ZZ16 (for the purpose of determining whether particular conditions relating to eligibility for statutory neonatal care pay are satisfied) to, in cases where an employee is entitled to another type of statutory family pay, align with the week that is relevant to that entitlement.

Schedule, as amended, agreed to.

Bill, as amended, to be reported.

[The Chair]

Before I end the sitting, I thank all Committee members, the Government and all who have been involved in making sure that this historic Bill makes it through the House so quickly.

Neonatal Care (Leave and Pay) Bill

Stuart C McDonald Excerpts

3rd reading
Friday 20th January 2023 Commons Chamber

[Stuart C. McDonald (Cumbernauld, Kilsyth and Kirkintilloch East) (SNP)]

I beg to move, That the Bill be now read a Third time.

I am incredibly happy to be able to bring the Bill back for further debate. At the heart of the debate and at the heart of the Bill is a simple idea: babies in neonatal care need their parents and their parents need to be with their babies, and we must do all we can to give families that vital time together. Today, we have the opportunity to help give them that time without the added worries of missing work and losing pay.

If I may, Mr Speaker, I would like to take this opportunity to thank colleagues across the House who have supported the Bill’s journey so far. I am very pleased to start with Madam Deputy Speaker, the Chairman of Ways and Means, given her kind words and insight on Second Reading. She noted the unanimity of the House that day, when we heard from Members right across the Chamber, including many with very personal and powerful stories and experiences. That consensus continued in Committee, whose membership included three of the four Ministers who have, at various points, been responsible for the Bill and very supportive of it, including the Minister on the Government Front Bench today. I am very pleased to see him in his place.

I would like to give particular thanks to my hon. Friend the Member for Glasgow East (David Linden) and the hon. Member for Thornbury and Yate (Luke Hall), who have both been especially helpful and have campaigned tirelessly on this issue for several years, but I am grateful to colleagues in all different parties for their support, both during proceedings in the House and in discussions outside.

I hope that spirit of consensus will continue today and I am optimistic that it will, this being one of the very rare proposals that could be found in both the SNP and Conservative manifestos at the 2019 general election. If that spirit of consensus does continue, I will have a whole host of organisations and individuals to thank for helping to champion this cause and build that consensus. Over the next few minutes I want to briefly recall the problem the Bill seeks to address and then detail how its provisions will address that problem. Finally, I will explain the positive changes that were made in Committee to improve the Bill. First of all is the issue that needs to be addressed.

The arrival of a new baby is of course overwhelmingly a time of joy and hope, but an estimated 100,000 babies every year are admitted to neonatal care in the United Kingdom following their birth. Many of those babies will spend prolonged periods of time on a neonatal care unit in a hospital as a result of being born prematurely or with other health conditions. For their parents, this becomes an incredibly worrying and stressful time. They will be desperate to focus on getting through that challenging time, supporting each other and being with their baby—or, indeed, babies—but very many find that difficult or feel unsupported. Fathers, if eligible, get only two weeks of statutory paternity leave. When that runs out, they may be called back to work while the baby is still in hospital. How can you productively work when your baby is on a ventilator in an intensive care unit?

When babies have an extended stay in hospital at the start of their lives, mothers report that 39 weeks of paid maternity leave sometimes feels barely like maternity leave at all. A large proportion of the time can be used up busing alone to and from a distant hospital where their baby is in neonatal care, and sometimes juggling other responsibilities, perhaps another child, all of which leads them to feel that they do not have sufficient quality time at home with their baby before having to return to work. Some will feel compelled to leave work as a result, and many do. None of that is good for parents, or for the developmental outcomes of premature babies denied important early and regular contact with their parents.

How will the Bill assist? The successful passage of the Bill will create a new statutory leave and pay entitlement for the parents of babies receiving neonatal care. Employed parents who find themselves in that stressful situation in future will know that, as a minimum, they are entitled to paid time off work to care for their babies and they will not suffer detriment from their employer as a result.

That protected time off work is crucial. There are some brilliant, supportive and flexible employers out there who deserve to be commended, and it would be great to see some more follow their lead. But sadly, they remain the exception rather than the rule. That is why we need neonatal care leave and pay entitlement to protect and support many more parents.

I turn to the main provisions of the Bill. If it is passed, neonatal care leave and pay will be available to parents of babies who are admitted into neonatal care up to the age of 28 days, and who have a continuous stay in hospital or in another agreed care setting of seven full days or more. Neonatal care leave will be a day-one right, meaning that it will be available to an employee from their first day in a new job. Statutory neonatal care pay, like other family-related pay rights, will be available to those employees who meet continuity of service and minimum earnings tests. The intention is that parents will be entitled to up to 12 weeks of neonatal care leave—one for every week that their child spends in neonatal case. That leave will be protected. A person should not suffer any form of detriment due to taking up their leave.

[Ms Anum Qaisar (Airdrie and Shotts) (SNP)]

I am delighted to be here to support my hon. Friend and to see that this Bill has cross-party support. Does he agree that the provisions in the Bill go a long way to ensure gender equality for fathers and non-birthing parents, who are often excluded from statutory maternity provisions?

[Stuart C. McDonald]

I am grateful to my hon. Friend for her support and her intervention, which I fully agree with.

[Richard Fuller (North East Bedfordshire) (Con)]

It is commonplace to congratulate Members for the passage of their Bill, but the hon. Gentleman will have sincere support from all sides, and I support his Bill. I hope he will allow me to probe a little, as I was not on the Bill Committee. He is talking about the benefits to employees and to families. Obviously, there is a burden on companies that will have to pay for those benefits. Could he advise the House of whether there was a discussion in Committee about those burdens? What is his understanding of what the additional burdens on companies may be?

[Stuart C. McDonald]

I am grateful for the hon. Gentleman’s support. He asks a perfectly fair question that I will come to in a little more detail later on. In essence, the provisions for businesses will be the same as for other existing rights. There will be reimbursement of 103% for small businesses, and up to 93% percent for larger businesses. For those businesses who already follow good practice, there will be a benefit because they will be reimbursed for what they are already doing. At the same time, feedback from employers shows that they benefit because they have a better relationship with employees, and the return to work is much smoother and more successful. I thank the hon. Gentleman for his question.

I will continue to describe the main provisions of the Bill. For parents who meet continuity of service and minimum earnings tests, the expectation is that neonatal pay will be paid during the leave at the statutory rate, which is just shy of £160, or 90% of the employee’s average wages—whichever is lower. Hopefully, that will be uprated in line with increases to statutory payments—something that we will monitor closely. That mirrors existing family leave and pay provisions such as paternity, shared parental and adoption and maternity after the first six weeks. The process for reimbursing employers will also mirror existing schemes.

There will be flexibility about when the leave is taken. The likelihood is that many fathers who have only two weeks of paternity leave will want to take their neonatal leave immediately thereafter, while their child is still in neonatal care. The situation for mothers is a little different, because once maternity leave commences, a mother cannot stop that maternity leave to take neonatal care leave, otherwise she will lose her remaining maternity leave. Neonatal care leave is therefore to be flexible in order that mothers can add it to the end of their maternity leave and any other forms of parental leave they might be entitled to. With that in mind, the Bill provides for the window of time within which neonatal care leave can be taken to be set out in regulations. However, the window will be six to eight weeks following the child’s birth, which ensures that mothers and fathers have sufficient time to take their neonatal care leave alongside other leave rights that they might be entitled to, rather than losing out on any other such entitlements.

Finally, I want to explain the amendments that were made in Committee. First, clause 2 was amended to remove the power to amend primary legislation via secondary legislation—a so-called Henry VIII power. That was originally included to ensure that the Bill, on becoming law, worked effectively alongside other legislation that is going through Parliament. Upon further assessment and examination, it seems that this power is not required, and the clause now only empowers amendments to secondary legislation. Given that I spend an awful lot of my time as an Opposition MP shouting about excessive and inappropriate use of Henry VIII powers, it is pleasing to have been able to take at least one of them out of this Bill.

Secondly, and perhaps more significantly, part 2 of the schedule to the Bill was amended by changing the definition of “relevant week” in proposed new section 171ZZ16 of the Social Security Contributions and Benefits Act 1992. The definition of “relevant week” is important because it fixes a point at which it is assessed whether a person is entitled to neonatal care pay. The Bill, on introduction, defined the relevant week as the one immediately prior to the week in which neonatal care started, which is similar to the drafting of equivalent provisions for parental bereavement pay. However, if a parent was already receiving statutory pay—for example, maternity pay—in the relevant week before their child enters neonatal care, their income could end up being lower than usual, negatively impacting their ability to qualify for neonatal care pay.

For those employees who are eligible for other parental pay entitlements such as maternity, paternity or adoption pay, the amendment made in Committee changes the definition of “relevant week” for neonatal care pay, to align it with the definition of “relevant week” in these existing entitlements. Amending the Bill in this way ensures that parents who are already low earners and perhaps only just above the earnings threshold do not miss out on the entitlement to statutory neonatal care pay simply because they are already receiving another type of family-related pay when their minimum earnings for neonatal care pay are assessed. Where an employee would not qualify for any of the other statutory parental pay, the relevant week will continue to be defined as the week immediately before the week in which neonatal care starts.

[Richard Fuller]

I was not in Committee, so I want to ask a particular question, and I am going to sound very smart. In subsection (2)(a) of proposed new section 171ZZ16, “Entitlement”, of part 12ZE of the 1992 Act, there is reference to

“a child who is receiving, or has received, neonatal care”.

The hon. Gentleman has been very clear on the Henry VIII powers and how the entitlement to this pay is aligned with other funding that is provided, but what is the definition of “neonatal care” in practice? It will be defined in regulations, but in practice, is it limited to parents of children who have been in neonatal intensive care units and other hospital facilities, or is there a broader definition?

[Stuart C. McDonald]

The definition in the Bill encompasses neonatal care up to the 28th day of the new baby’s life. Further thought has to be given to whether we limit that to care on a neonatal ward or whether we go further than that, and I hope that we do, because there will, for example, be families who have babies at home but are regularly required to be at hospital appointments or have regular interventions and people visiting to provide care and treatment. We have to think about how we define it in a way that makes it clear but does not exclude people simply because they are not physically in a hospital 24 hours a day. That is a fair point, and further work needs to be done before we come to a final conclusion on exactly how this should look.

In concluding, I want to reiterate that what we are debating here is the traumatic and stressful experiences faced by families with wee ones in neonatal care, and at the heart of this proposed legislation are vulnerable babies who need us to do more to help their parents at a crucial time. We need to ensure as far as we can that those parents have the time and resources to focus on their babies, without the additional burden of worries about money and time off work. There are tens of thousands of families each year counting on us to get this done and get it right, and I ask Members across the House to give this Bill their support.

--- Later in debate ---

[Stuart C. McDonald]

With the leave of the House, may I first thank the Minister and the shadow Minister for confirming their ongoing support for the Bill? It really is appreciated. I too say a massive thank you to BEIS officials for their fantastic help throughout the process; while the broad principles of the Bill are quite clear and powerful, there is a lot of technical stuff involved as well and I am very grateful to them for their help.

More than anything, I am grateful to so many hon. Members from right across the House who have contributed in such a positive and powerful fashion. The personal is often the most powerful, and there were good examples of that today from the hon. Members for Pontypridd (Alex Davies-Jones), for Ynys Môn (Virginia Crosbie), and for Wantage (David Johnston). My hon. Friend the Member for East Dunbartonshire (Amy Callaghan) talked about Kirsty’s experiences. The hon. Member for Sedgefield (Paul Howell) said he was waffling, but I thought he spoke powerfully about Leo’s charity, so I thank him for that. I am struck by the number of hon. Members who have repeatedly been here to speak about this Bill, including the hon. Members for Cheadle (Mary Robinson) and for Watford (Dean Russell), so I thank them for doing so.

Some hon. Members raised additional points that I had neglected: the hon. Member for Clwyd South (Simon Baynes) spoke about neonatal staff, whom I also want to thank, having had the pleasure of visiting the neonatal unit in Wishaw, where the staff and the parents there at the time all spoke supportively about what this Bill would mean for them. He also made the point about the relatively limited expenditure this would entail for the Exchequer, something that the hon. Member—my hon. Friend—for North East Bedfordshire (Richard Fuller), also spoke about. He was very kind to me and scrutinised exactly what the Bill means, including the role of HMRC. If and when the Bill finally reaches the statute book, it will be all about pressing HMRC to get it up and running as fast as possible. The hon. Member for North Devon (Selaine Saxby) rightly drew our attention to some of the specific challenges for those living in rural areas, as well as to the problems encountered by fathers in particular, who often have to resort to using sick pay, which is in nobody’s interest—theirs or the employer’s.

Importantly, the hon. Member for Wantage (David Johnston) takes me on to thanking all the charities that have made the case over many years that has got us to this place, including Bliss, which has been mentioned several times and was a key driver in introducing me to the issue, and the Smallest Things, whose representatives are here today, which has also done fantastic work. I also thank Pregnant Then Screwed, Tommy’s, Working Families, GRACE, the British Association of Perinatal Medicine, Sands, the Rainbow Trust Children’s Charity, the all-party parliamentary group, which has been mentioned, the Chartered Institute of Personnel and Development, the TUC, Unison, NHS Lanarkshire, University Hospital Wishaw, Dr Michelle Weldon-Johns at Abertay University, and constituents and others from across the country who have been in touch with their own stories. They have made the powerful case that, hopefully, will get the Bill through the House of Commons today. I am also grateful to Baroness Wyld for agreeing to take it forward in the other place as it continues its journey, which I hope will get it on to the statute book in early course.

Question put and agreed to.

Bill accordingly read the Third time and passed.