24 June 2020
An Interim Parental Payment Scheme (IPPS) will launch next Monday 29 June 2020. The scheme will provide subsidy payments to employers whose staff take paid parental leave under the amended Employment Law. IPPS will also support sole traders and other business owners who take parental leave.
The amendment to the Employment Law – which was approved by the States Assembly in October 2019 - entitles all new parents to 52 weeks of parental leave, with 6 weeks to be paid by the employer. These new rights will come into force on 28 June, following a States Assembly decision two weeks ago.
This change in the Employment Law was planned to be accompanied by changes to the benefit system to provide financial support for both parents. However, the outbreak of COVID-19 has led to a delay in extending the benefit system to introduce a parental leave benefit for both parents.
As an interim step, the IPPS will support employers with some of the additional costs of paid parental leave for the second parent by providing a one-off lump sum payment of up to £1335.
IPPS will run until the work on the parental benefit has been completed, scrutinised and approved by the Assembly. This is due to be completed by the end of 2020.
Minister for Social Security, Deputy Judy Martin, commented: “I am delighted that the final stage of family friendly rights will be in place next week, bringing in improved rights for parents including breastfeeding rights for the first time.
“Last year I promised businesses that I would provide some extra support to them alongside the extension of family friendly rights. The new IPPS will make it easy for employers to claim this support.”