Taxation: Healthcare Insurance

Debate between Baroness Whitaker and Lord Sassoon

Thursday 9th June 2011 Lords Chamber

[Lord Sassoon]

My Lords, they may to some extent at the margin remove a burden off the National Health Service, but, equally, under the previous arrangements where partial tax relief was given, there was considerable additional cost to the taxpayer. It is estimated that putting in place some new allowance would immediately cost the Exchequer at least £700 million—probably considerably more—because of the dead-weight effect of offering that relief to people who already have medical insurance.

[Baroness Whitaker]

My Lords, does it remove the burden on the National Health Service if it is the same surgeon who performs the treatment, whether private or public, because then the privately insured person jumps the National Health Service queue?

[Lord Sassoon]

My Lords, that was not the point that I was arguing at all. I stress again that there is no intention to change the existing relationship. We are not studying any plans to bring in a new benefit in kind in this area. These are all interesting points, and some are important, but I hope that the position is clear.