[Relevant Documents:First Report of the Petitions Committee of Session 2019-21, The impact of Covid-19 on maternity and parental leave, HC 526, and the Government response, HC 770; First Report of the Petitions Committee of Session 2021-22, Impact of Covid-19 on new parents: one year on, HC 479, and the Government response, HC 1132; e-petition 606011, Introduce neonatal leave and pay entitlement immediately.]
Bill, as amended in the Public Bill Committee, considered.
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.
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?
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?
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.
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?
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.
Thank you, Mr Speaker, not only for calling me to speak but for making accommodations to enable me to speak in this debate. It is a pleasure to follow the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald). I congratulate him on getting his important Bill to Third Reading; it was a pleasure to support it on Second Reading and in Committee. On Second Reading, he said:
“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.”—[Official Report, 15 July 2022; Vol. 718, c. 593.]
I hope that the cross-party support for the Bill today will reflect that enthusiasm.
It is estimated that approximately 50,000 babies born in the UK each year need to spend more than one week in neonatal care. This policy change will provide relief and support for the families of those 50,000 babies, meaning that parents can concern themselves with and focus on the wellbeing and care of their children, and not fret about their employment or income. At such a stressful time in parents’ lives, it is right that we should ensure that an extra financial burden is not added to the situation.
I know that the hon. Member worked closely with the charity Bliss, which has supported families across the UK, including in Cheadle and Greater Manchester. May I take the opportunity on behalf of my constituents to thank Bliss and other groups that support people in that position?
For parents whose children may spend some weeks in hospital, the Bill will mean that they do not have to miss out on valuable time with their baby at home. Importantly, the fact that paid leave can be taken within a window of 68 weeks following the child’s birth, as I understand it, will hand parents the power to make their entitlement as useful as possible to them.
It is an honour to follow the hon. Member for Cheadle (Mary Robinson). May I, too, echo the congratulations to the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) on all his hard work on this Bill? It is a genuine honour to speak in the remaining stages on this private Member’s Bill. We all know how rare it is for there to be a time when such a Bill can progress in this place, but the particular importance of this Bill makes this an even greater achievement. I, too, would like to place on record my sincere thanks to Bliss, the charity that does so much work to help parents with babies in a neonatal unit, for all of its hard work to help sick and premature babies every day of the year. I wish to declare my interest, as a proud vice-chair of the all-party group on premature and sick babies, which has been campaigning on this issue for a very long time. I, too, place on my record my sincere thanks to its chair, my friend, the hon. Member for Glasgow East (David Linden), for all his hard work.
Colleagues may recall that in response to last year’s Gracious Speech I stood in this Chamber and condemned the then Minister for claiming to “remain very much committed” to introducing neonatal leave and pay via an employment Bill only for any trace of the Bill to be surreptitiously removed when the moment came. That was just one of 20 times the Government promised us an employment Bill. I have vocally supported the need to legislate to create statutory neonatal leave and pay since I was elected to this place, so of course I am over the moon that the Bill from the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East will soon be sent to the other place and will be one step closer to finally becoming law. This Bill is personal for me: my son Sullivan was born two weeks prematurely, by emergency C-section. Sulley stopped breathing shortly after birth and spent two weeks fighting for his life in a neonatal intensive care unit. I will never forget the anxiety my husband and I experienced in those very long few weeks. In previous debates, I have shared with colleagues how, following Sulley’s birth, I was completely dependent on my husband while recovering. We were fortunate that my husband’s employer had a flexible approach to annual leave and he was able to take paid time off to support us. However, the thousands of new parents with babies who require neonatal care every single day of every year are often not so lucky.
May I pay tribute to the hon. Member for Pontypridd (Alex Davies-Jones) for the emotional and personal tales she just told? It is so important to share those, and telling them in this Chamber must take a lot of courage, so I welcome her doing that, because I am sure that many people at home who are watching this will have gone through similar experiences. May I also pay tribute to the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald)—I hope I said that correctly this time—for introducing this Bill? Private Members’ Bills do not always get through to this stage and it is easy for them to fall much earlier.
I know from hearing testimonies in the previous debates and in the Committee, and from speaking to members of the public, including constituents of mine, people’s personal take on this Bill, which brings to life how having children is one of the most—if not the most—precious thing that those of us who are fortunate to have had children can do. My family were fortunate in not needing to go through neonatal care, but I do remember that, when my daughter was born at Watford General Hospital, emotions ran high; there was a fear for this precious, fragile, wonderful person that we had brought into our lives. There is this fear that something could go wrong, so to have to go through the distress of something actually going wrong must be so challenging and difficult to deal with. That is why the Bill is so important.
According to the Office for National Statistics, as I understand it, there are 624,828 births in England and Wales every year, and 13,500 in Hertfordshire, but every year more than 90,000 babies are cared for in neonatal units in the UK due to premature birth, or sickness among full-term births. That is a huge number. It affects not just those children, but their parents, their families and all those who need wrap-around care. It is difficult to think that a parent could not spend time with their child in those precious few days, in that first couple of weeks, but it is not just for their child; it is for their loved ones—their spouse—as well. People want to make sure that they can put first not work but the thing that they probably go to work for.
I congratulate my hon. Friend—indeed, my very good friend and constituency neighbour—the Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald) on bringing this Bill forward, having won the parliamentary lottery. That is something about this place that ought to be reformed, but I pick my battles, for now.
To be honest, this has been a really difficult week to be an elected Member of this place, but the Bill my hon. Friend has presented has been a light at the end of the tunnel and sets a refreshing change of tone, especially as it has support across the House. It provides a glaring example, however, of the priorities on different sides of the House: the Government set the topic far more often than we do but have opted to spend their time on eroding workers’ rights, whereas the SNP have brought forward a Bill that gives workers more rights.
The Bill seeks to address the inadequacy of existing parental leave and pay when a baby is born premature and sick. It will support and assist families across the UK to make ends meet during an incredibly challenging time and present parents with an opportunity to have more time at home to care for their baby when they eventually make it home to their family. The Bill is of particular importance during this cost of living crisis, where working families are crying out for additional support, particularly where a home may need to be heated all day long to provide an adequate temperature for a premature and sick baby.
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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.
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.
The Bill, which will amend the Employment Rights Act 1996, will create a natural extension to the UK’s already generous parental leave and pay by providing an entitlement for parents of babies who need care in health settings for more than one week before they reach the age of 28 days. The 12 weeks of paid leave will be on top of other statutory leave and pay entitlements. Critically, as the hon. Member set out, it will be a day one right: an employee will be entitled to it from their first day on the job. We know that many employers already handle these situations sensitively and with compassion, but it is right that this care and understanding be extended across all employers. Quite simply, the Bill is about caring for and valuing people.
I am glad that the Government have supported amendments that the hon. Member, as the Bill’s promoter, tabled in Committee. They include an amendment that makes changes to the relevant week to calculate pay and seeks to ensure that parents who are low earners do not miss out on their entitlement to statutory neonatal care and support. It is important that such a policy change is delivered in the most effective and accessible way.
At previous stages, Members across the House shared their own deeply personal experiences, as well as stories of their friends and constituents. We all know someone who would have benefited from this leave entitlement, so it is good to know that in future there will not be the same added burden at a time of worry and distress. I know that the policy has been in the works for many years and the Government are committed to delivering it. Once again, I thank the hon. Member for bringing it forward. I hope that it will have unanimous support across the House.
As colleagues will know, a shocking one in seven newborn babies receive some sort of neonatal care. Paid neonatal leave, as this Bill would provide, ensures that parents can focus fully on being there with their new baby, without having the complicating pressures of worrying about work or finances. Those precious first days with a new baby are sacred, and for any baby in need of neonatal care this should be no different. The inflexibility of our current parental leave legislation serves only to worsen what is for many parents of babies in intensive neonatal care by far the most traumatic period of their lives—it does not have to be this way. So although it is welcome that we will likely finally see neonatal leave and pay enshrined in employment law, I must place on record my frustration that it has taken so long for us to have reached this point; I am afraid to say that there has been an absence of leadership on this issue from the Government. I am sure I do not need to remind the Minister that his Government made a manifesto commitment in 2019 to introduce neonatal leave and pay, and that this important modernisation of employment law for new mothers and fathers alike has had to be introduced by a colleague. It has not been introduced by those on the Government Front Bench, which suggests that this Government have been asleep at the wheel.
None the less, I am, of course, relieved that the Government have supported this Bill. I was not part of this Bill's Committee, but I am pleased that the Government appeared to work constructively with the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East to get this Bill to where it is today. But I cannot help but think of all the parents of babies in need of urgent neonatal care who will not benefit from this Bill, because for them it is already too late. This Bill will be a welcome addition to the statute book, but it is long overdue. I wish it every success in the other place, and, once again, I congratulate and commend the hon. Gentleman for his dedication to this vital work.
I appreciate that colleagues will quite rightly challenge and scrutinise the impact on business and organisations. There are burdens—if we can call them that—that are placed on business, but, actually, the burden of having a member of staff or member of a team who is desperately worried about their newborn child while being at work cannot be very productive and it cannot be helpful for them doing their job. I would say that it is not a burden to enable the Bill to pass and to follow these rules; it is something that will help businesses. It will help to build morale, build a team, and make sure that people are being productive. That is why the Bill is so important. We hope that businesses and society will do the right thing, and often that is the case—the tips Bill that we will discuss later this morning is a good example of that—but they do not always do the right thing. This law will make sure that support is there for the families as well as for the babies. It will also ensure that businesses know that, as family life is at the heart of this country, workers have a right to take time off to look after their family member and their child.
When researching the subject of this debate, I looked up some statistics and found that the number of families and parents impacted is quite high. Two in five parents of hospitalised babies—40%—have anxiety or post-traumatic stress. Levels decline over time, but, a year after birth, one in four is still suffering. That is higher than generally seen in new parents. The truth is that this goes to the heart of mental health as well. Next week—to give a small plug—I shall be introducing a ten-minute rule Bill on mental health first aid in the workplace, and all Members are welcome to join in on that.
People are far more aware today than they have ever been of the importance of mental health and mental wellbeing in the workplace. Two in five parents of hospitalised babies suffer anxiety or post-traumatic stress, which is a huge number. The fact is that that can trigger depression and long-term impacts, so those first couple of weeks—or even first few days—of being able to be there for our loved ones and for our child will reduce the risk of long-term impacts, such as anxiety and depression. That can also have an impact on people’s relationships. Those to whom I have spoken, who have been supportive of the Bill, all say that we are not talking about an isolated two or three weeks and then it is over and suddenly life gets back to normal. It does not. When people have a young child, the worries and anxieties about what that will bring in future are incredibly strong and can linger for years. They can damage relationships and they can harm other children in the family.
One other point to make is that, as I understand it, the average length of stay in neonatal care in England and Wales is seven days, so this Bill will do a huge amount to ensure that in that first week or two, parents can be supported and do not have to worry that they will damage their career opportunities. They will not have to worry about having to go cap in hand to their bosses to ask for what is really a family right in this country.
I will not speak for too long, but I want to say a huge thank you to hon. Members across the House for supporting this Bill. It is an important way to show that this country is one that cares about family and about children, and that builds a better society and a better community. Thank you for indulging me by allowing me to speak today, Mr Speaker; I wholeheartedly support the Bill.