Explanatory note

Paragraphs 4 and 5 of the Schedule to the Neonatal Care (Leave and Pay) Act 2023 (c. 20) (“the 2023 Act”) inserted Part 12ZE into the Social Security Contributions and Benefits Act 1992 (c. 4) (“the 1992 Act”). This created an entitlement to statutory neonatal care pay. The 2023 Act does not apply or extend to Northern Ireland.

Paragraph 11 of the Schedule to the 2023 Act amended section 4(1)(a) of the 1992 Act, to provide that sums paid to or for the benefit of a person in connection with an entitlement to statutory neonatal care pay are treated as remuneration from an employed earner’s employment for National Insurance contributions (“NICs”) purposes.

As a result of the changes to the 1992 Act set out above, payments of statutory neonatal care pay now fall within the definition of “earnings” for the purposes of NICs as set out in section 3(1)(a) of the 1992 Act.

These Regulations make consequential amendments to the Social Security (Contributions) Regulations 2001 (S.I. 2001/1004), to insert references to statutory neonatal care pay into various provisions governing the collection and recovery of earnings-related NICs.

A Tax Information and Impact Note has not been prepared for these Regulations as they are part of a package of legislative measures and the relevant impact assessment was published on 23 January 2023. A copy of the document is available at: https://publications.parliament.uk/pa/bills/cbill/58-03/0014/NeonatalCareLeaveandPayIA_Final.pdf.