Oral Answers to Questions

Debate between Jane Ellison and Tania Mathias

Tuesday 28th February 2017 Commons Chamber

[Dr Tania Mathias (Twickenham) (Con)]

3. If he will make an assessment of the potential merits of ring-fencing national insurance revenues for spending on health and social care.

[The Financial Secretary to the Treasury (Jane Ellison)]

As hon. Members will know, although national insurance contributions are primarily used to fund state pensions, a proportion of NICs is already allocated directly to the NHS, but beyond that, the Government do not have any plans to ring-fence national insurance contributions to fund health and social care.

[Dr Mathias]

I thank the Financial Secretary for that answer, but with a view to the long-term sustainable financing of health and social care, will she look into this as a means of depoliticising the debate and ensuring long-term funding for health and social care not just for today, but for decades to come?

[Jane Ellison]

I understand my hon. Friend’s core point. The Government have taken action to ensure that the NHS has the funding it needs by increasing its annual budget by £10 billion above inflation by 2020-21. We are mindful of the long-term challenges. The issues were recently highlighted by the Office for Budget Responsibility, which laid them out quite starkly in its latest fiscal sustainability report. On depoliticising the debate, I would say that backing the NHS’s own plan for its own future in the way we have done is the best way of doing that.