National Insurance Contributions (Secondary Class 1 Contributions) Bill

Gideon Amos Excerpts

Consideration of Lords amendments
Wednesday 19th March 2025 Commons Chamber

[James MacCleary]

I absolutely agree. The care provider in my constituency faces a 9.4% increase in employer’s costs, which it simply cannot absorb. These are the very people keeping elderly and disabled residents safe in their homes, preventing hospital admissions and easing NHS pressures, yet the Government have chosen to burden them rather than support them. The Lords amendments I mentioned would ensure that care providers can continue to deliver essential services without being driven into financial crisis.

[Gideon Amos (Taunton and Wellington) (LD)]

The £615 cost per person reported to me by care providers in my constituency will mean that one constituent, who is paying £1,500 a week for care for her 94-year-old mother, will no longer have the money to pay for the care of her disabled brother as well, after the fees go up as a result of this jobs tax. Does my hon. Friend agree that that is a shockingly unacceptable result of these changes, and that the Lords amendments introduced by the Liberal Democrats should be accepted?

[James MacCleary]

I thank my hon. Friend for providing such a concrete example of the real suffering these changes will cause. This is not an abstract thing; it is about real people’s lives, and there are people who will suffer as a result, as in the example given by my hon. Friend.

I will move on to nurseries and early years providers, an issue very close to my heart. In my constituency, they are facing the same impossible squeeze. The rise in national insurance contributions, combined with the increased statutory wage costs, is pushing many to the very brink. The National Day Nurseries Association has warned that the average nursery will see an additional £47,000 in costs, which the Government’s funding increase does not come even close to covering. If nurseries are forced to close, it will leave working parents, who are already struggling with the cost of living, without the childcare they need. If schools are exempt from this tax hike, as they should be, the nurseries that provide the very foundation of a child’s education should be, too.

What makes this even worse is that the Government are not just undermining essential services, but forcing more people towards them by stripping away other forms of support. At the same time as these tax hikes, Ministers are cutting vital benefits such as personal independence payment, leaving thousands of vulnerable people struggling to afford the basics, meaning that more people will have no choice but to turn to the very care providers and community health services that are now being hit financially by these national insurance changes. The Government cannot claim to support essential services while actively driving them towards collapse. They are giving with one hand, while taking much more with the other.

I find that a gauge of the level of enthusiasm and pride that a Government have in a policy they have put forward is often the number of their representatives who turn up to support it and be associated with it. Notwithstanding the heroic contribution of the hon. Member for Loughborough (Dr Sandher), the emptiness of the Government Benches speaks volumes.

The Liberal Democrat Lords amendments before us today would help to prevent irreparable damage to GP practices, care providers and the wider healthcare system. I urge the Minister to back them, because failing to do so will cost not just money, but lives.