Health and Care Bill

Alison McGovern Excerpts

Report stage
Monday 22nd November 2021 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

My hon. Friend and neighbour is making an excellent speech. We should be talking about a plan for social care, but we are actually talking about a tax on the people who have lost out over the past decade and more from the excessive house price growth in the south compared with other parts of the country. This is a tax that doubles down on inequality, rather than addressing it.

[Justin Madders]

I thank my hon. Friend and neighbour—I am getting all my neighbours in tonight. She makes a brilliant point: the proposal exacerbates regional inequalities through an unfair tax and is certainly not a plan to fix social care. Hon. Members should look at what my hon. Friend the Member for Leicester West has said about what needs to be done to tackle the social care crisis in this country; it is an awful lot more than putting in place a cap that benefits only some people in certain parts of the country.

Not only will the proposal not stop people having to sell their home to pay for their costs, but it will bake in unfairness for a generation. It does nothing for working adults with long-term care needs, who seem to have been completely missed out, as my hon. Friend the Member for Worsley and Eccles South (Barbara Keeley) said. It is not what was promised, but hon. Members do not have to take my word for it. Let us listen to the experts. Age UK says:

“The change the Government has announced makes the overall scheme a lot less helpful to older people with modest assets than anyone had expected. It waters down Sir Andrew Dilnot’s original proposal to save the Government some money, but at the cost of protecting the finances of older home owners…This feels like completely the wrong policy choice and we are extremely disappointed that the Government has made it”.

The King’s Fund says of people with more modest assets that,

“the Prime Minister’s promise that no one need sell their house to pay for care…doesn’t seem to apply to them.”

Instead, it will only “benefit wealthier people”.

--- Later in debate ---

[Mel Stride]

I rise to speak to new clause 49. In doing so, and whatever its merits or otherwise, it is worth reflecting on the comments made by the Minister that we are at least here this evening looking at a part of a process that will lead to some progress in meeting social care costs going forward and removing the catastrophic risk that has hung above the heads of all our constituents up and down the country: that their healthcare costs may end up costing them all of their assets. We are also here having taken the tough decisions around having raised taxes to fund those arrangements.

I have problems with new clause 49. It seems to me that to make good law in this place, first, we need time to consider the matters put before us and secondly, we need the appropriate information upon which to take those decisions. On both those points, I have real concerns about how new clause 49 has been brought forward. The first we heard of it was not in Committee or in September when the general measures were put forward, including the taxation measures on which we all divided and voted, but on Wednesday evening, when the amendment was tabled.

It was fortuitous that the Treasury Committee happened to have Sir Andrew Dilnot before us the very next day. We were able to discuss many of the issues inherent in new clause 49. A number of issues were raised, to which only the Government have the answers. One of them has been put forward powerfully by speaker after speaker tonight, which is: what are the impact assessments associated with these measures? I wrote to the Chancellor immediately after that session and asked him for some impact assessments, including geographical impact assessments, of which we have had none.

It seems that the only information we have had was released by the Department of Health and Social Care on Friday night, in a document called “Adult social care charging reform: analysis”. I am very short of time, which is a shame, but there is, for example, a chart of a 10-year care journey that looks at individuals with different asset levels. While it is true, as my hon. Friend the Minister said, that these arrangements, even with new clause 49, are better for almost every level of wealth than under the status quo, it is not the case that everybody is better off compared with the measures brought forward in September.

[Alison McGovern]

The right hon. Gentleman gets to the heart of the matter, which is what people will get, compared with what they were promised. Is that not the heart of this matter?

[Mel Stride]

I think the heart of the matter is that we have to be clear and wide-eyed about what this change will do. Yes, it is true that it will leave us in a better position than the status quo, but it is not the case that it will leave those who are less well-off in a better position than if new clause 49 were not passed by the House. For those with assets of about £106,000, by my read of this graph, about 59% of their assets would be lost on average under the original proposals. Under the amended proposals, that figure would rise to 70%. When it comes to those who would be better off as a consequence of new clause 49, many are the better off, because they benefit from the changes being made to daily living costs, to which my hon. Friend the Minister referred.

I am out of time, but I believe that these measures should have been better ventilated in this House—certainly in Committee, if not earlier. We would then have had better information and more time in which to make these important judgments.