Paternity Pay and Leave Update
The 2026/27 tax year brings a welcome update to paternity leave rules.
What’s changed?
This also aligns with Statutory Shared Parental Pay. It’s a modest increase, but one that payroll teams should ensure is reflected in their systems.
More significantly, there’s now greater flexibility in how paternity leave can be taken. Previously, employees generally had to take paternity leave before moving on to Shared Parental Leave. Now, they can take these in any order. This gives families more choice in how they structure their time off.
Day one leave, but week 26 pay
Paternity Leave is now a “day one right”, meaning employees no longer need a minimum length of service to request time off.
However, it’s important to note that Statutory Paternity Pay rules have not changed. Employees still need to meet the 26-week service requirement (along with earnings criteria) to qualify for pay.
What does this mean in practice?
The changes introduced in April 2026 mean:
- Employees have more flexibility in how they take leave.
- New starters can request paternity leave immediately.
- But not all employees will qualify for statutory pay.
For example, an employee can now take Shared Parental Leave first and still take paternity leave later.
What should employers do now?
This is a good time to review your internal processes. Make sure:
- Payroll systems are updated with the new rates.
- Policies reflect the new flexibility in leave order.
- Managers understand the difference between leave entitlement and pay eligibility timeframes.
‘These changes are a step towards a more flexible and modern approach to family leave,’ says Trina Heggarty of Hargreaves Owen Chartered Certified Accountants in Halls Green, Herts. ‘While the updates are relatively straightforward, it’s important to get the details right. This ensures you are compliant and also protects your reputation as an employer.’
Hargraves Owen Chartered Certified Accountants is conveniently located near Baldock, Hitchin and Letchworth. Arrange a free initial discussion without obligation.