Health and Social Care Levy

Dehenna Davison Excerpts

1st reading
Wednesday 8th September 2021 Commons Chamber

[Jake Berry (Rossendale and Darwen) (Con)]

Let me start by congratulating the Government on grappling with what I think is a very difficult issue—actually, it is probably “the” issue for our generation to deal with—of how we ensure that older people have dignity in their old age, and how we deal with an ageing population. However, I do not believe that the way in which we are proposing to do it, through national insurance contributions, is the correct way.

There are three reasons why I think this will be particularly damaging to areas such as the one that I represent. First, ours is an area with low incomes. The lower a person’s income, the more that person pays, as a proportion of that income, in national insurance contributions. The national insurance rate on incomes above £50,000—before these changes—is just 2%. So those on the lowest incomes pay the most proportionately in national insurance contributions.

Secondly, ours is an area with low property values. An £86,000 cap on contributions, or even a £100,000 asset floor, may be right for other parts of the country, but in my constituency, where the average property price is £170,000 or £180,000, by the time people hit that damping floor of £100,000, they would have had to pay the equivalent of 50% of their property value in care home fees.

[Dehenna Davison (Bishop Auckland) (Con)]

I thank my right hon. Friend for raising an important issue, with which I too have been grappling since yesterday’s announcement. Does he agree that it would be wonderful to hear from the Government that they may consider looking at regional disparities in house prices when setting the floor?

[Jake Berry]

What a brilliant suggestion—one that I was about to make myself. I think that the Government should think about both the £86,000 contribution and regional house prices when considering that damping floor.

Thirdly, ours is an area with historically high unemployment. National insurance, as we have all called it during election campaigns, is in fact a jobs tax. It is a disincentive to the creation of new jobs, and those already in work will see, for instance, pay rises suspended as the wage bill goes up for employers just for employing people in their businesses. That is why I think that national insurance is the wrong tax to use for the people in my constituency. They are hit just as hard by this appalling social care issue as people anywhere else, but, for us, I would have much preferred it if the Government had looked at income tax, which, as we heard from the Chair of the Treasury Select Committee himself—my right hon. Friend the Member for Central Devon (Mel Stride)— would be much less regressive.

--- Later in debate ---

[Dehenna Davison (Bishop Auckland) (Con)]

I know there have been partisan words flying across the Chamber today, but one thing that unites everyone across the House is a commitment to try to tackle the issue of social care so that our children are still not having to deal with it in generations to come. I would like to start by thanking all our NHS workers who have been a part of tackling the really difficult challenge over the past 18 months. Their dedication to fighting covid, keeping us safe and keeping the NHS working at this difficult time must be commended by us all. I also want to thank our care workers. I have to mention my cousin Natalie and my great aunt Elaine, who have been fantastic, working throughout the pandemic. I have said it now. They will be watching at home.

I am really proud that, after years of it being kicked down the road, it is the Conservative party that is finally grasping this issue and saying that we are going to tackle social care. To some extent it has been disappointing to hear Labour criticise with no viable alternative. I want to try to be more constructive. One of my concerns is about the speed at which these proposals have been presented to us. We know that urgency is needed to tackle this issue. In a sense, it is fantastic that the Government want to act swiftly, but having seen these proposals only yesterday, we have had limited time to scrutinise them effectively and to consult our constituents and find out what their concerns are about these proposals, and to feed that into Government. I really hope that Government will engage with us as this passes through to the next legislative stages.

The speech that really struck me today was from my right hon. Friend the Member for Rossendale and Darwen (Jake Berry). I kind of wish I could copy and paste his speech and turn it into my own, because it really did address many of the points that I wanted to make. The first one I want to touch on is the relativity of house prices and how the maximum floor for care will have an impact. My hon. Friend the Member for Hitchin and Harpenden (Bim Afolami) made a decent point about needing a simple system, but unfortunately, when looking at that limit and relative house prices in areas such as my Bishop Auckland constituency, where the average house price is about £120,000, seeing constituents potentially lose a huge percentage of their only asset—an asset that they have worked their entire lives for to pass on to their children—is something that I am finding incredibly hard to justify, when people in other areas of the country who have worked equally hard would lose a much smaller percentage of that asset.

It is good, however, to see the floor lifted from £23,000 to £100,000. That is to be commended, but still, there is an issue about the ultra-wealthy who will also have the cost of their care capped, and who can afford to pay more than the £86,000. I hope that that will be addressed. I also have concerns about national insurance being used as the tool for this, like many other colleagues who have spoken today.

My main concern is the fact that we have not had a great deal of time to consider these proposals and to consider alternatives, as my right hon. Friend the Member for Gainsborough (Sir Edward Leigh) said. The article by Peter Lilley proposing a state-backed optional insurance system not only is a free market approach to tackling this, backed up by the state, which is well needed, but goes to the Conservative principle of personal responsibility that I think every Government Member supports.

A quote by Mike DeWine, the former Governor of Ohio and a US Senator, struck me:

“Governing is about making tough decisions, but it’s also about figuring out a better way to do things.”

I am so proud that the Government are making this tough decision. I hope that by working together, we can find that better way of delivering on our social care pledge, but unfortunately, for the reasons I have highlighted today, I will be abstaining on this today. However, I will work alongside colleagues to try to make it the best it can be for all our constituents, for the country and to ensure that our economy can bounce back in the best possible way.

--- Later in debate ---

[Ben Everitt]

No—not cocktails!

We have to recognise that the simple option is not always the right one, and I look forward to the debates that will follow as this policy evolves.

As for the quantum and the period over which the revenue is spent, I must ask whether it is enough to fix the care sector. The hon. Member for Sheffield South East (Mr Betts), the Chairman of the Housing, Communities and Local Government Committee, referred to the previous report of the Health and Social Care Committee, which required an additional £3.6 billion for the sector. Are we going to get that, and is it going to go through at the right time? We need to solve the broken economics of running a care home, which mean that providers must fund the services off the back of private clients to subsidise the clients who are referred by local authorities. I think we need a big conversation about that as well.

Let us turn to how the money is spent. The additional funding must be supported by meaningful reform. We must address the issue of funding allocation, and the allocation of responsibility within the sector. Currently, the system is set up to incentivise referrals. The system is split between local authorities, care providers and the NHS.

[Dehenna Davison]

Does my hon. Friend agree that we need a wide spread of provision to ensure that we have the best possible outcomes for social care patients?

[Ben Everitt]

Absolutely. We need more providers in the market, but the market needs to be functioning for that to take place.

My hon. Friend made a very good point earlier about another aspect of how the money is spent. The £86,000 cap needs to be met and tweaked with a regional house price element to recognise the fact that houses are worth more in some areas than in others.

In conclusion, I will vote for this. Our job in this place is to make good laws, and we need to do that at every stage. This is a tricky problem. The Government are right to grasp the nettle and reform social care. The fundamental problem that we face is that the assumptions that we are basing our entire welfare system on were made in the 1940s when people went into work in their teens, retired when they were 60 and lived until they were about 65. Now, they are living much longer lives and retiring earlier. That is the funding issue that we face.

UK-EU Future Relationship Negotiations and Transition Period

Dehenna Davison Excerpts

Monday 7th December 2020 Commons Chamber

[Penny Mordaunt]

I think that the trust for which the United Kingdom is renowned is deep. I think it is very well understood that the moves the Government have taken with regard to the United Kingdom Internal Market Bill have had to be taken as an insurance policy to preserve the integrity of our country. The Prime Minister and the Minister for the Constitution and Devolution, my hon. Friend the Member for Norwich North (Chloe Smith) have been very clear, as has been the Secretary of State Justice, on why we are taking this particular course of action. I still think that the United Kingdom is held in very high esteem in that respect.

[Dehenna Davison (Bishop Auckland) (Con)]

A large number of colleagues have already mentioned the importance of parliamentary sovereignty, which we recognise as one of the most important cornerstones of our democracy. With people across the country voting overwhelmingly to get Brexit done, will my right hon. Friend assure Bishop Auckland residents and the House that any deal we sign will categorically not undermine our sovereignty and our ability to set our own border policy, or our ability to strike free trade deals with our global friends around the world?

[Penny Mordaunt]

Quite right. We have as a nation been on a rollercoaster over the past few years, and the British people have been absolutely resolved, as demonstrated at the last general election, that we are going to get this done. I think it would be a very difficult discussion to have with our constituents if we had gone through that rollercoaster for no upside. We have to secure these freedoms; we are a sovereign nation, and that is the future we must all look forward to.

Covid-19: Economy Update

Dehenna Davison Excerpts

Thursday 22nd October 2020 Commons Chamber

[Rishi Sunak]

Given that the grants are backdated, if that results in extra Barnett consequentials, of course that extra funding will flow to Northern Ireland, as it will to other devolved nations. With regard to the job support scheme, as I said, there will be no interruption of coverage between one scheme and the other. As the hon. Gentleman points out, the employer contribution will be significantly reduced on 1 November.

[Dehenna Davison (Bishop Auckland) (Con)]

I am incredibly grateful to my right hon. Friend and the whole Treasury team for their work, and I would especially like to thank my hon. Friend the Member for East Surrey (Claire Coutinho) for her engagement on this matter. I am already receiving messages from my constituents to say that they are delighted with these schemes. Bishop Auckland landlords will be helped out by this. I just have one question: how quickly can we expect these grants to hit businesses? I know that County Durham did an exceptional job of getting them out last time, but if he could provide a timeline, I would be grateful.

[Rishi Sunak]

I know that my hon. Friend is a proud champion of all her local pubs, judging by all her Instagram photos—I am very jealous. Having visited many of them with her during the campaign, I am glad that she is providing them with the support that they need at this difficult time. I know that these grants will make a difference. I can reassure her that we will work very quickly to get the guidance out. The funding will be available on a monthly basis; a month after the restrictions start, the funding will be there for those businesses.

Areas with Additional Public Health Restrictions: Economic Support

Dehenna Davison Excerpts

Tuesday 6th October 2020 Commons Chamber

[Steve Barclay]

We keep all packages under review but, to address the very legitimate point that the hon. Lady raises about particular impacts within the economy, we have extended the self-employed income support scheme as one of the vehicles of assisting many of her constituents and those affected particularly in the arts. It is the case that certain sectors have been acutely hit and where we are not able to save every job in a sector, it is extremely important that we are able to get the support, the skills and the training package in place to people from such sectors in the wider economy.

[Dehenna Davison (Bishop Auckland) (Con)]

We can all agree that the Government’s economic support has been a lifeline for millions of hard-working people but in local lockdown areas, such as those across the north-east, hospitality businesses are really struggling with restrictions such as the 10 pm curfew and households not being able to meet for a meal and a pint across Bishop Auckland. May I urge my right hon. Friend to look at how he can offer additional economic and financial support? Some of these businesses have seen their takings drop through no fault of their own.

[Steve Barclay]

I know that the 10 pm curfew is an issue that a number of colleagues across the House have raised. As I said a moment ago, it is about getting the balance right. We have striven to ensure that venues are able to continue to be open most of the evening rather than, as we saw in the initial lockdown, having to close. It is about protecting the majority of the evening and getting the balance right with the later night socialising that the chief medical officer and others are most concerned about in terms of the risk to public health. It is something that we continue to keep under review and learn from other countries around the world. As I have said, other countries are addressing similar issues.

Co-operative and Community Benefit Societies (Environmentally Sustainable Investment) Bill

Dehenna Davison Excerpts

2nd reading & 2nd reading: House of Commons
Friday 11th September 2020 Commons Chamber

[Dehenna Davison (Bishop Auckland) (Con)]

Co-operatives UK produced a report in 2019 which said that the north-east has the highest number of co-operatives per head of population. Does my hon. Friend agree that getting the policy on co-operatives right is even more vital for the north-east and the areas that he and I represent?

[Peter Gibson]

I am grateful to my hon. Friend for her intervention. She is a strong champion for all that is great about the north-east, and I welcome her contribution.

I recognise the phenomenal contribution of co-operatives to our diverse economy. However, I cannot support this Bill. My hon. Friend the Member for Christchurch (Sir Christopher Chope) got to the nub of the issue—this is not a green Bill; it is a Bill to change the laws around co-ops to the detriment of their members.