Family Friendly Employment Law Updates in 2025 and Actions You Can Take Now

Laura Duggal
Sep 23
4 min read

2025 has brought several shifts in UK employment law, many of them designed to strengthen support for new parents. If you’re thinking about how your organisation can respond in ways that feel both compliant and human, this blog is for you.

This is a collaboration between Laura Duggal, Parental Return to Work Coach, and Philippa Roberts, HR Consultant at HR People Support Ltd. Together, we’re walking through the most relevant legal updates for family-friendly policies and highlighting what they mean for organisations in practice.

You can also download our Family Leave & Pay Updates: Key Changes 2025 Guide for quick reference and to share with line managers.

We’ll cover:

Neonatal Care Leave and Pay
Family-friendly changes through the Employment Rights Bill
The Government’s review of parental pay and leave
The statutory pay uplift

And we’ll end with some practical actions you can prioritise now.

1. Neonatal Care Pay & Leave

What’s new?

From 6 April 2025, eligible parents will have the right to up to 12 weeks of neonatal care leave from day one of employment if their baby requires specialist care within the first 28 days of life. This provides one weeks leave for every 7 full continuous days baby is in neonatal care.

It must be taken at the end of maternity or adoption leave, so if little one is sick and has to stay in neonatal care for 21 days then instead of losing these 3 weeks of leave it is added to the end of maternity or adoption leave.

Employees with 26 weeks’ service are entitled to Statutory Neonatal Care Pay which is either £187.18 per week or 90% of average earnings (whichever is lower). (Gov.uk overview)

Why it matters

This closes a long-standing gap in statutory provision. Parents facing the emotional strain of neonatal care will now have time to bond, recover, and adjust whilst not worrying about the impact of losing this precious time with their new little one/s.

Things to consider

Do your policies explicitly reference neonatal care leave?
How will you support employees in such a difficult time?
How will managers be supported to have sensitive conversations with employees in these circumstances?
Do you have letter templates to correspond with employees on leave?

2. The Employment Rights Bill

What’s new?

The Employment Rights Bill brings a suite of reforms to better support working families. While implementation will roll out in phases, key changes include:

Day-one rights: Paternity leave and unpaid parental leave will both be available from the first day of employment (removing the current 26-week and 1-year qualifying periods).
More flexibility: Paternity leave can now be taken after shared parental leave, giving families greater choice in how they coordinate leave.
Stronger protections: Proposals to expand protection from dismissal for pregnant women and new mothers, including after their return to work, and extend these to adoption and shared parental leave.
Bereavement leave for miscarriage: Parents experiencing pregnancy loss before 24 weeks will have the right to at least one week of leave.

Why it matters

These reforms signal a cultural as well as legal shift, towards equity, security, and flexibility. They also support retention and attraction of talent in a competitive market and demonstrate the value that working parents bring to the workplace and give them support in challenging personal times

Things to consider

Are your policies ready to adapt to these reforms before they become law?
Do managers have the confidence and training to support employees fairly and compassionately?

3. Review of Parental Leave & Pay

What’s new?

On 1 July 2025, the Government launched an 18-month review of parental leave and pay, spanning maternity, paternity, adoption and shared parental policies. Proposals being explored include:

Extending paternity leave to six weeks (with part potentially paid at 90%).
Increasing statutory rates of pay for working parents
Simplifying shared parental leave.
Considering provisions for self-employed parents.

Why it matters

The review acknowledges that current systems can be complex and, at times, unequal. It’s a chance for employers to shape the future by sharing feedback, and to prepare for changes that may make leave more accessible and equitable. The UK has one of the most gender unequal statutory parental leave systems in the developed world*

Things to consider

Will your organisation contribute to the call for evidence (open until 25 August 2025)?
How can you strengthen your culture around parental leave now, so you’re ready to embrace reforms later?

4. Statutory Pay Uplift

What’s new?

From 6 April 2025, all family-related statutory payments (including maternity, paternity, adoption, shared parental, and parental bereavement pay) rose from £184.03 to £187.18 per week.

Why it matters

While small, uplifts like this can make a real difference for families weighing up financial choices about leave. It’s also a timely moment to remind employees that your policies are aligned with statutory updates.

Things to consider

Has your payroll been updated to reflect the new rates?
Could you use this as an opportunity to spotlight the wider support you offer to new parents?

Practical Actions for Autumn 2025

Here’s a framework to help HR and leadership teams prioritise next steps:

Immediate compliance

Update policies to include neonatal care leave and ensure other family friendly policies are in line with current legislation.
Confirm payroll reflects statutory uplifts.

Policy readiness

Review your handbook for upcoming day-one rights and have discussions at a senior level around where you would like to position yourself as a company regarding family friendly policies.
Consider drafting a miscarriage bereavement leave policy in advance.

Culture and leadership

Proactively ask: What questions do new parents need answered before they need leave?
Encourage leaders to model shared care, not default to maternal-only assumptions.
Consider contributing to the Government consultation to help shape parental policy.
Ask your staff what changes they would like to see, give them a voice and encourage them to be part of the change
Look at training to support managers so they are better prepared to not only support employees in some of the most challenging times of their lives, but also understand operational and privacy implications.