Family-Friendly HR: Integrating New SSP and Parental Leave Rights

Family life and work life don’t exist in separate worlds. When a new baby arrives or a child falls ill, employees need time and support – and businesses must be ready to provide it. That’s why a number of new family-friendly employment rights are being introduced in the UK. And if you're running an SME, these changes matter.

Between statutory sick pay (SSP) updates, the introduction of neonatal care leave, and new entitlements around parental leave, there's a clear shift in how employers are expected to support working families. For business owners and HR leads, the question now is: how do we adapt our policies, contracts and culture in line with these reforms?

Let’s walk through the key changes and how they might affect your business.

Understanding What’s New

From April 2024 through to 2026, several significant updates have been phased in. One of the most important is the introduction of neonatal care leave and pay. This provides up to 12 weeks’ extra leave for parents whose babies require hospital care soon after birth. Crucially, the right to take leave starts from day one of employment – so no service threshold applies. Pay will be available to those meeting the relevant earnings criteria.

Paternity leave is also seeing a notable overhaul. Employees can now split their entitlement into two separate blocks of one week, rather than taking it all at once. The window to use paternity leave has been extended to the baby’s first birthday, giving families more flexibility. This, too, becomes a day-one right.

In addition, unpaid parental leave – which used to require 12 months’ continuous service – is now available from the start of employment. These changes reflect a wider recognition that families need flexibility and support right from the beginning of an employment relationship, not just after a year of service.

Meanwhile, the rates for statutory payments have increased. Statutory Sick Pay (SSP) has risen to £118.75 per week, while statutory family leave pay – which includes maternity, paternity, adoption, shared parental leave and the upcoming neonatal care pay – is now £187.18 per week. To qualify, employees must earn at least £125 per week, in line with the updated Lower Earnings Limit.

What This Means for Your Business

For SMEs, the legal updates are only half the story. The real challenge lies in applying these changes in a way that works for your team – and for your operations.

First and foremost, you’ll need to update your existing HR policies and employment contracts. References to qualifying periods, leave structures and payment rates should be reviewed and revised. If you use a staff handbook, it should now reflect the new day-one rights for paternity and parental leave, along with guidance on neonatal care leave as it comes into force.

But a policy update is just the start. Communicating these changes effectively is just as important. Staff need to know what they’re entitled to and how to request time off, particularly when dealing with stressful or emotional situations. Consider holding a briefing for line managers or creating a short internal guide to walk through the updated leave entitlements in plain English. That simple act can help employees feel more supported and confident in asking for what they need.

Then there’s the operational side. For smaller teams, unplanned or extended leave can create real strain. It’s natural to worry about the impact of someone being away for several weeks – especially when resources are already tight. The key is planning. Training more than one person on critical tasks, encouraging job shadowing, and building in some contingency during key project periods can help soften the blow of sudden absences.

Supporting a colleague during family leave isn’t just about practical cover, either. It’s about culture. Businesses that approach parental leave with empathy – whether it’s welcoming a new child, caring for a premature baby, or needing time off at short notice – are more likely to retain loyal, motivated staff. And that’s something no policy can guarantee on its own.

Looking Ahead: More Change on the Horizon

These latest changes form part of a bigger shift in how the government is approaching work-life balance. A broader review of parental leave and pay is now underway, with the aim of making the system simpler, fairer and more flexible for both employers and employees.

While nothing further is confirmed yet, possible reforms include rethinking how leave is split between parents, aligning different types of pay, and streamlining the system for small businesses. The direction of travel is clear: employers are being encouraged to embed family-friendly practices into the foundations of their workplace culture – not treat them as add-ons.

So now is a good time to review your wider approach. Are your policies up to date? Do your managers feel confident having conversations around leave? Do your staff feel supported when family life throws up the unexpected?

If the answer is “not quite”, the HR Dept can help

We work with SMEs every day to make sense of these updates. Whether you need help rewriting policies, updating contracts, or guiding managers through real-life scenarios, we’ll provide tailored advice that’s easy to implement – and always grounded in the realities of small business life.

If you need help navigating these changes, get in touch with your local HR Dept office today. We’re here to support you with practical, people-first HR advice that fits your business – and your budget.