Health and Social Care Levy

Clive Efford Excerpts

1st reading
Wednesday 8th September 2021 Commons Chamber

[Clive Efford (Eltham) (Lab)]

This national insurance increase is a point of no return for the Tories. It is an unfair way to raise the money needed for our NHS and social care, with those who earn the least and the young paying for those who are already well off. It is the biggest single tax increase in 70 years, which will see the highest level of tax paid in the UK in peacetime, and as my hon. Friend the Member for Sheffield South East (Mr Betts) pointed out, the Government’s own document says there is more to come in council tax increases. We have already had increases and precepts imposed on council tax. When the Tories got caught out because they cut 20,000 police officers, they put a levy on council tax to pay for police officers and this year they put on a 3% levy—£600 million—to go into social care. They have had their hands in people’s pockets for several years now and they have not taken them out.

Let us be clear: the claim that the Tories are the party of low taxes and a small state is over. The argument in the future will be about how we invest in public services and how we value the workers who work in them. People earning as little £10,000 will pay the increase. People who can afford to pay more, such as hon. Members on these Benches, should not rely on them to pay increased taxes: they should be asked to pay their fair share. People who have to count every penny to survive on a daily basis—to buy food and to pay rent, travel costs and household bills—have to budget day by day to live and they will have to tighten their belts, but those of us on higher incomes who could pay more and whose lives will not be changed by this increase will not have to tighten our belts at all.

My hon. Friend the Member for Birmingham, Selly Oak (Steve McCabe) pointed out one of the areas that will suffer most. It is those areas where the Tories talk about levelling up that will be the hardest hit by this tax increase. What of their local economies, with the tax the Government are taking out of those economies that will not be there to be spent in local businesses? There is no levelling up in this tax the Tories are imposing, and there will be less money to circulate in those economies. It is not fair that those people we clapped during covid—care workers, delivery workers, shop workers, postmen and postwomen, and many more who kept our economy going during difficult circumstances—will be asked to pay a disproportionate amount through this tax increase.

There is no going back for the Tories from this day forward. Whatever happened to the pledge the Prime Minister made in 2019 that no one would have to sell their home to pay for care and that he would co-operate across the House and discuss the way forward on how to deal with the issue of social care? That is yet another broken promise from this Prime Minister. If a person is property rich and cash poor, how are they going to be able to avoid having to sell their homes? The £86,000 is a Kensington cap. Outside London, in many areas the cap is far too high and will lead to people losing their homes.

There is no plan for social care in what the Government have announced so far. The Tories have behaved here today as if these problems had just been created and had just emerged because of the pandemic, but nothing could be further from the truth. The waiting list was 2 million before the pandemic hit, and they took £8 billion out of social care. Where was all the hand-wringing and all the concern about social care and the NHS back then? They are using the pandemic as cover for 10 years of cutting public services and underfunding our national health service. How are they going to explain to their constituents that they are being forced to pay this increase to pay for 10 years of Tory neglect?

Health and Social Care Levy Bill

Clive Efford Excerpts

2nd reading
Tuesday 14th September 2021 Commons Chamber

[Steve Barclay]

I think one needs to see whether these are roles that are driving efficiency and creating savings elsewhere, or whether they are viewed in isolation. That is why one needs to understand the workforce as a whole, where there are overlaps within the NHS but, above all, how we deliver reform, which is something I know that the Secretary of State for Health and Social Care is passionately committed to doing. That relates to the point that was rightly raised by my hon. Friend the Member for Winchester (Steve Brine) on the delivery of reform in order to maximise the value for money of the spend that the levy will unlock.

Finally, we need to fund our vision for the future of health and social care in this country over the longer term. As the Prime Minister said, with proper funding, we can not only tackle the NHS backlog and expand the social care safety net but afford the nurses’ pay rise, invest in the best equipment and prepare for the next pandemic. We can provide the largest investment ever to upskill social care workers and build the modern, more efficient health service the British public deserve.

[Clive Efford (Eltham) (Lab)]

It seems to me that we are spending this money twice, so can the Minister tell the House specifically how much will go into the NHS from this increase and how much will go into social care? What I am hearing from him is that we are going to deal with the backlog, which will take us back to pre-pandemic levels. That will leave us with a 2 million waiting list, so can he tell us specifically how much is going into the NHS and how much is going into social care?

[Steve Barclay]

Of the £36 billion, £5.4 billion is going to adult social care, with the rest going into the NHS or through Barnett. That is over three years.

--- Later in debate ---

[Jeremy Hunt]

As it happens, we are currently conducting an inquiry into how to deal with the covid backlog, so I commit to my hon. Friend, with whom I so enjoyed working at the Department of Health and Social Care, that we will certainly do that.

[Clive Efford]

rose—

[Jeremy Hunt]

I will give way and then make some progress.

[Clive Efford]

I have heard what the former Secretary of State has said about the record on social care, but can he explain what he did to try to prevent the Conservative Government from taking £8 billion out of social care?

[Jeremy Hunt]

First, we passed the Care Act 2014, which put in place the legislative foundations for the proposals that we are now going to fund. Secondly, I happen to agree with the hon. Gentleman: the social care system has needed more money for some time. That is why it is so extraordinary that his party is to vote against this Bill.

If we are going to take £12 billion a year out of people’s pockets, we need to avoid falling into three traps—and I say this as someone who has fallen into more traps in this policy area than anyone else in this House. The first trap that we need to be careful of is the workforce. If we put an extra £8 billion into the NHS but we do not have £8 billion-worth of additional doctors and nurses to do the extra treatments, the risk is that that money will hit the ground without touching the sides. That is why we need a workforce plan.

The Health Foundation says that the backlog will require 4,000 more doctors and 18,000 more nurses, but we have not had any workforce plan from the DHSC. I suspect that in the short term we will have to relax all the immigration requirements for doctors and nurses. That will not be great for developing countries, but it may well be our only choice. In the medium term, the best suggestion is what my Select Committee and many others have proposed: we should give Health Education England the statutory responsibility to produce independent workforce estimates and create a discipline, a bit like the OBR does for Budgets, to make sure that we are training enough doctors and nurses. That is the first trap.