Wednesday 15 September 2021

Newspaper column 15 September 2021 - Health and Care Levy

 

Last week was the first week Parliament sat following the summer recess. It is always a busy week returning after six weeks of recess, but this year it was busier than usual.

We saw a number of important debates on current issues such as the situation in Afghanistan and the ongoing pandemic. I was pleased to be able to make a number of contributions in the Commons.

The biggest debate in Parliament last week was the announcement and then vote on the government’s plans to raise addition funding for the NHS and Social Care. After careful consideration this was something I decided to support.

We are all aware of the incredible pressure our health and care system is facing. It is predicted that the waiting list for those waiting for treatment, scans and operations could reach as high as 13 million people in the next couple of years, unless action was taken.

Additionally, we know that the social care system is facing greater pressure than ever before and there is a need to not only provide greater funding but reform the way the system works.

I am pleased that alongside the additional money raised through the Health and Care Levy, we will also be putting in place cap of £86,000 on the amount anyone will have to pay towards their own social care costs. Once that limit is reached no one will have to pay for their own care costs. This will mean that people will not be forced to sell their homes to pay for their care costs.  Those with assets below £100,000 will not have to pay the full cost of their care.

The government will also be coming forward with proposals to reform the way social care functions and ensure it works much more closely with the NHS to avoid the backlog in people being discharged from hospital as is currently the case.

With our own hospital under incredible pressure, it is vital we ensure the NHS has the resources it need to deal with the list of those waiting for treatments. Raising taxes is never something a Conservative government does lightly. But this government has shown time and again that it will not shy away from the tough decisions.

We could have sat by and stuck to the line that our manifesto stated we would not raise taxes, but I do not believe it would have been right to not act and allow the NHS waiting list to rise as predicted. We could of course have added the funding to the £400billion we have already borrowed, but that would have simply pushed the challenge down the road for our grandchildren to pay back.

The decisions to add 1.25% to employee and employer National Insurance, from next April, by way of a Health and Care Levy is, in my view, the least worse possible option to address the challenges we face. It means those with the broadest shoulders, on the highest salaries, will pay the most. We have also extended the levy to all those in work above state pension age, as well as putting a levy on dividend earnings so those who get their income from investments will also contribute.

This will raise more than an additional £12billion a year. Most of which in the first two years will go to the NHS to catch up with the backlog of those needing treatment. We will also initially put £1.8billion extra into social care which will increase as the NHS backlog is reduced.

I appreciate some will not agree with this decision but having considered all of the possible options I do not believe there was a better alternative. We could not sit and do nothing, and raising the funds in this way means that all those in work earning over £9600 per year will make a contribution, while the highest 14% of earners will pay more than 50% of the costs.

Whilst we continue to do everything needed to bring an end to this pandemic, we must also look to the coming years and take the decisions needed to ensure we can recover and return to normal as soon as possible. Ensuring the NHS has the funding it needs to deal with the backlog in treatments and social care is reformed are part of ensuring we can do this. So I am pleased to support the government in these very challenging decisions.