About the Interim Parental Payment Scheme (IPPS)
The Interim Parental Payment Scheme (IPPS) has been implemented by the Social Security Minister. The scheme will provide subsidy payments to employers when their staff decide to take paid parental leave under the amended Employment Law.
IPPS is a non-statutory, interim scheme that accompanies the Employment Law changes to be introduced from 28 June 2020.
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. These changes give parents an entitlement to take up to 52 weeks of parental leave, including 6 weeks of paid parental leave for both parents.
This is done by supporting businesses with a one-off lump sum payment to cover the equivalent of 6 weeks of proposed parental benefit (up to £1349.88) for a second parent when they take paid parental leave under the amended law.
The parents covered by this interim scheme can choose when to take their 6 weeks of paid leave. Some or all of this leave can be taken after the interim scheme has closed and the new parental benefit regulations are in force. Likewise, this scheme will be in place until the full parental benefit regulations can be approved and implemented.
The aim of this scheme is to support both families and businesses in the fairest way possible during the temporary period when the Employment Law changes have been made, but the parental benefit regulations are not yet in force.
Duration of the IPPS
The scheme will run from 28 June 2020 and will expire on 31 December 2020.
Whilst the scheme is operational, regulations to introduce full parental benefits will be developed and States approval sought.
This scheme will be withdrawn when the parental benefits are in force. If the new benefits are not available on 1 Jan 2021, the Social Security Minister will take a decision as to whether to extend this interim scheme.
Assistance provided by the IPPS
This scheme is for use by any employer when their staff who are adoptive / surrogate / second parents (the partner of the birth mother) decide to take paid parental leave under the employment law.
A payment will be made subject to the employee having an appropriate contribution record. The employer will receive a one-off lump sum payment to cover the equivalent of 6 weeks’ worth of the proposed parental benefit, this will help with payments towards any paid parental leave their employee may take in the future.
During the paid leave period provided under the employment law, the employee will receive their full wages, paid by their employer.
The standard weekly value of the parental benefit will be the same as the maternity allowance ie up to £224.53 per week. Not all parents will be eligible for the full amount.
This scheme is designed for employers to claim a subsidy in respect of their employees. It is available to the employer of any parent who is entitled to take statutory paid parental leave (this includes workers on zero-hour contacts) and has provided the employer with the dates on which the (up to) 6 weeks of paid leave will be taken.
IPPS is not available to a birth mother. The existing maternity allowance will continue as it currently does.
How to apply
The scheme can be applied for by the employer, not the parent / employee.
Employers will only be able to claim for parents who have babies that are due, or adoptions that are approved, during the scheme’s time period (28 June to 31 December 2020) and book or take parental leave.
The application process can be done online:
Interim Parental Leave Payment Scheme application form
The application process is administered by Customer and Local Services. Each application should relate to one employee that has requested parental leave.
Full IPPS guidelines
For any enquiries, email the Customer and Local Services Health Zone Team or call +44 (0) 1534 444444.
For any queries relating to the new Employment Law, or your rights as an employee, contact the
Jersey Advisory Conciliation Service (JACS).
Parental Leave 2020 Guidance on the JACS website