In preparation of the introduction of Statutory Parental Bereavement Leave and Pay legislation, due to commence in April 2020, HMRC, Software Development Support Team has released instructions for software developers regarding the requirements for the new pay element.
When the Act comes into force next tax year, parents will be entitled to a day-one right to statutory leave of 2 weeks if they suffer the loss of a child under the age of 18 or suffer a stillbirth from 24 weeks of pregnancy commencing on or 6 April 2020. Employed parents will also be able to claim pay for this period, subject to meeting similar eligibility criteria associated with existing average weekly earnings rules and calculations to those for Statutory Maternity and Adoption Pay, but with a difference in reference to ‘relevant periods’ as follows:
- The ‘relevant week’ is the week (ending with a Saturday) before the week in which the child dies
- The ‘relevant period’ is the period of 8 weeks ending with the relevant week
Some of the key aspects of the provisions
Leave – employees will be entitled to take leave and receive pay (if qualifies) as a single block of two weeks or discontinuously as 2 separate blocks of 1 week each.
The entitlement must be taken within 56 weeks, starting with the date of the child’s death and can start on any day of the week and if the loss of more one child is experienced the entitlement is granted for each child.
The employee must provide evidence of entitlement in writing including a written declaration that the person meets the qualifying conditions for Statutory Parental Bereavement Pay including details of:
- the name of the person claiming SPBP
- the date of the child’s death (or date of birth for a stillborn child) and
- the period or periods in relation to which statutory parental bereavement pay is to be paid.
Payment – Will be calculated at the statutory payment rate in force for the year (currently £148.68 per week or 90% of average weekly earnings if less). Increases will be applied each tax year in line with other statutory parental payments.
This figure will be reported through the Full Payment Submission and the recoverable amounts included as a year to date figure on the Employer Payment Summary.
The principle of entitlement to the maximum amounts of statutory relief is compliant with rules for other statutory payments excluding Statutory Sick Pay.
In addition, the instructions provide for a broader meaning to the conditions as to the employee’s relationship with the child, in consideration of the term ‘parent’ can in certain circumstances include grandparents, if there is evidence that they have been looking after the child in place of the child’s parents; or will have provided day to day care for the child in their own home for a continuous period of at least four weeks ending with the child’s death.
Employers will need to consider how they will address any technical measures surrounding the extended definition of ‘parents’.
A calculator for Statutory Parental Bereavement Pay will be added to HMRC’s Basic PAYE Tools. calculator section and GOV.UK will include guidance on manual calculations.
