Introduction of a new statutory allowance from April 2025
From 6 April 2025 HMRC will begin to administer a new statutory allowance – Statutory Neonatal Care Leave and Pay (SNCL&P) on behalf of the Department for Business and Trade. Â
This new statutory allowance currently excludes those employees who are resident in Northern Ireland.
There will be circumstances where a baby is born sick or prematurely and may require neonatal care. In some cases, this care may need to last for a prolonged period. SNCL&P therefore looks to reduce some of the burden on new parents who might otherwise have to return to their workplace at a time when their baby is still receiving neonatal care. 
This new statutory allowance:
- is claimable in the first 28 days following the birth of that child after they have spent 7 consecutive days in neonatal care.Â
- can be paid for a maximum period of 12 weeks but will allow some flexibility dependent upon individual parental circumstances and other statutory payments to which they may be entitled.
SNCL&PÂ will give such parents the option:
- to take up to 12 weeks of paid leave.
- to take Statutory Neonatal Care Pay (SNCP) in addition to other leave entitlements currently in place for example, statutory maternity or paternity leave.
- to afford them the opportunity to find, and spend, more time with their baby in neonatal care at what is most probably a time of great stress.
Notification to HMRC of payment of SNCP will be through your third-party payroll software or Basic PAYE Tool in line with other statutory payments.
If you are unsure of what these changes will mean, please contact us on 01384 403500
SRC Accountancy Ltd.
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