Family leave and pay are changing quickly, and for many employers, it can feel like you’ve only just updated one policy before the next reform lands. The good news is that most of the changes are practical and manageable… but only if you plan ahead.
A number of important updates are already in force, including Neonatal Care Leave and Pay (introduced in April 2025). And from April 2026, some big “day one” rights kick in under the Government’s Plan to Make Work Pay reforms, delivered through the Employment Rights Act 2025 and related regulations.
In this article, I’ll walk you through what’s already changed, what’s changing in 2026 (and when), what’s coming later, and what employers can do now to stay compliant without creating unnecessary work.
What’s already changed
Neonatal Care Leave and Pay (in force since 6 April 2025)
If you haven’t had to deal with neonatal care leave yet, you might not have it on your radar, but it’s one of the most meaningful changes for working families in recent years.
Neonatal Care Leave and Pay applies where a baby is admitted for neonatal care early on, and the care lasts for at least seven consecutive days within the baby’s first 28 days. Parents can take additional leave of up to 12 weeks, on top of their other entitlements such as maternity or paternity leave. The right to the leave itself is available from day one, and statutory neonatal pay is available subject to eligibility rules.
In practice, many parents will attach neonatal leave to the end of existing family leave. From an employer’s point of view, the most helpful thing you can do is make the process clear and compassionate, because when this entitlement is used, families are usually going through a very stressful and emotional time.
“The lack of additional parental leave rights for parents to date has forced many to make the unimaginable choice to return to work in order to pay their bills while their baby is desperately ill in hospital.“
Caroline Lee-Davey, Chief Executive at Bliss
What’s changing in 2026
The Government has published a timetable for measures being introduced in 2026 as part of the Plan to Make Work Pay programme. For family leave, the key date is 6 April 2026.
‘Day one’ paternity leave and unpaid parental leave
From 6 April 2026, paternity leave and unpaid parental leave become ‘day one’ rights. In plain terms, employees will no longer need to build up a qualifying period of service before they can take these forms of leave.
This matters most for newer starters. If someone joins your business and soon after finds out they’re expecting, or they need parental leave for a child, their eligibility will be much more straightforward. For employers, it’s less about a wave of leave requests overnight and more about making sure your policy wording, manager guidance and internal processes match the new position from April.
Bereaved partners’ paternity leave
Also from 6 April 2026, bereaved fathers and partners will be able to take up to 52 weeks of paternity leave if the mother or primary adopter dies within the child’s first year.
This is, thankfully, an entitlement that most employers will rarely see in practice, but when it is needed, it will be one of the most sensitive situations your managers will ever handle. Having a clear policy, a named HR contact, and a compassionate approach can make a huge difference to someone who’s going through the worst kind of life event.
Statutory pay rates increase
Family-related statutory pay rates also rise for the 2026/27 tax year. The main weekly rate for things like paternity pay, adoption pay (after the initial period), shared parental pay, parental bereavement pay and neonatal care pay increases to £194.32 per week (or 90% of average weekly earnings if lower). Statutory maternity pay continues to be 90% of average weekly earnings for the first six weeks, then the standard weekly rate after that.
For most employers, this is a simple payroll update, but it’s still worth checking your payroll software, templates, and any internal calculators you use, particularly if you have enhanced company schemes that reference statutory rates.
A quick note on wider HR changes landing in 2026
Even though this article focuses on family leave and pay, it’s worth knowing that the same Government timetable also includes changes to statutory sick pay from April 2026, and a strengthened duty around preventing sexual harassment later in 2026. Those aren’t “family leave” reforms, but they do affect absence, risk and people management planning in the round.
To find out more, speak to our team about the Employment Rights Act changes.
What’s expected later (2027 and beyond)
The Government has also flagged additional reforms on its roadmap for 2027. Items relevant to family leave include:
- Bereavement leave, including pregnancy loss (planned for 2027)
- Enhanced dismissal protections for pregnant women and new mothers (planned for 2027)
- Flexible working reforms (planned for 2027)
These are not all in force yet, but they’re important for longer-term policy and resourcing planning.
How these changes to family leave and pay may impact your business
Across 2026, employers should expect:
- More “day one” eligibility, meaning a higher proportion of your workforce can request paternity and parental leave earlier in employment.
- Longer absence scenarios in specific cases (for example, neonatal care leave, and bereaved partners’ paternity leave).
- Higher statutory pay costs per employee (rates rise again for 2026/27).
Smaller businesses and sectors with tight staffing (for example, hospitality and care) may feel resourcing pressure most sharply, particularly if multiple overlapping family leave periods occur.
How to prepare for changes to family leave and pay
- Arrange your free ERA Impact Assessment with the team. So you can understand what your organisation needs to do to be ready for the changes. Book your asssessment here.
- Update payroll rates for 2026/27
Ensure statutory family pay rates are updated to £194.32 where applicable. - Review and update family leave policies
- Add/refresh Neonatal Care Leave and Pay processes (if you haven’t already).
- Update policy wording to reflect day one paternity leave and day one unpaid parental leave from 6 April 2026.
- Add a clear section for bereaved partners’ paternity leave where relevant.
- Brief line managers
Managers need to understand the new entitlements, the sensitive nature of neonatal/bereavement situations, and how to handle notice and documentation requirements consistently. - Keep an eye on the 2026–2027 roadmap
If you’re planning restructures or policy rewrites, factor in the staged timetable rather than updating once and redoing it again months later.
How we can help with changes to family leave and pay
Keeping up with new employment laws and changes to family leave and pay can be overwhelming. At Fitzgerald, we’re here to make it easy. Our experts can help with family leave policies, training and advice.
Whether it’s recruiting for temporary cover or answering your questions on absence management, you can book a free consultation or call us on 0330 223 5253 to see how we can help.
Further Reading
If you enjoyed this article on the changes to family leave and pay, we think these will be right up your street:
Employment law changes: past, present and coming up
The complete guide to GDPR for employers
Maternity leave discrimination: key facts and how to avoid it
Employment law changes: what to expect from April 2025
Key takeaways
- Plan your resourcing: With more employees entitled to take longer periods of leave following the changes to family leave and pay, businesses will need to plan ahead. Consider options such as overtime, multiskilling and temporary contracts, to cover absences.
- Communicate: Keep in regular contact with employees while they are on leave to ensure they don’t feel excluded. Communication will be important in maintaining a strong employment relationship.
- Handle requests for family leave sensitively: Businesses must tread carefully when establishing entitlement to family leave. A compassionate and sensitive approach should always be taken.
- Data protection: Don’t forget your obligations under GDPR to handle sensitive data lawfully.
