National Insurance Contributions (Secondary Class 1 Contributions) Bill

Sorcha Eastwood Excerpts

Committee of the whole House & 3rd reading
Tuesday 17th December 2024 Commons Chamber

[Chris Curtis]

Thank you, Ms Nokes. I am happy to count the number of times I have mentioned national insurance in my speech, but I can guarantee Conservative Members that it has been quite frequent. I will mention it again in the following sentence.

The Budget, including the NICs changes, makes hard decisions to fix the foundations of our economy. We will work tirelessly to bring about the economic growth that the previous Government failed to achieve, so that we do not have to make such hard decisions in the future. It is only by doing so and not engaging in the fantasy economics of the Conservative party that we can break free from the cycle of failure, support businesses of all sizes and create a brighter future for our country.

[Sorcha Eastwood (Lagan Valley) (Alliance)]

I am proud to have tabled several amendments to the Bill to support people in Northern Ireland and, indeed, the organisations that lobbied me to do so. Amendments 10, 11 and 12 seek to protect Northern Ireland’s healthcare, social care, childcare, hospices, and community and voluntary sectors from the impacts of the proposed rise in employer’s national insurance contributions. Those sectors provide vital services in Lagan Valley and right across Northern Ireland, yet they are being asked to bear a disproportionate burden without the ability to mitigate the costs.

Let me begin by recognising the importance of sustainable funding for public services. My party welcomed many aspects of the Chancellor’s inaugural Budget, including changes to fiscal rules, NHS investment, and the unpausing of city and growth deals. However, we are deeply concerned about the consequences of the national insurance increase for critical sectors in Northern Ireland that are already operating under immense financial strain.

During the last five years, community and voluntary groups have played a critical role, from supporting our communities during the covid-19 pandemic to responding to the ongoing cost of living crisis. However, despite their vital contributions, they are once again treated as peripheral when it comes to matters of funding and taxation. In Northern Ireland, our higher public sector dependency and chronic underfunding mean that such groups in our region are uniquely vulnerable to the rise in NI. Indeed, the recent Executive monitoring round in October made it clear that the Barnett consequential remains inadequate to cover departmental overcommitments.

Community and voluntary organisations are not an optional extra. They are currently a cornerstone of public service delivery, often co-designing and implementing essential programmes in partnership with Government. However, when financial pressures mount, they are frequently left to shoulder an unfair burden. The national insurance hike risks further entrenching that inequity. Such organisations should not be regarded as expendable. They must be exempt from the increase, which is precisely what my amendments seek to achieve.

Northern Ireland’s hospices are overwhelmingly reliant on private donations, and Members from across the House have referred to the Westminster Hall debate that we had only a few weeks ago. Regardless of their opinion on the subject, everyone recognised the importance of hospices, yet the proposed NI rise will see some of their doors close. That is the reality of what we are facing today. As for trying to get a GP appointment, good luck—not just in Lagan Valley and Northern Ireland, but right across the UK—as general practice is struggling to meet the many demands that are put on it.

Today I want to highlight the unique circumstances that we in Northern Ireland face. The challenges are not abstract; they are real, tangible and deeply felt by my constituents. It should come as no surprise to Members present that Northern Ireland’s health waiting lists are some of the longest in Europe, and far exceed those in the rest of the UK. Despite being the bedrock of our healthcare system and being under immense financial strain in Northern Ireland, providers such as GPs, dentists and pharmacists are currently not exempt from the rise in NI, even though they are already struggling under immense cost pressures. Capacity reductions in primary care are simply not an option for Northern Ireland. Dental practices, particularly those providing NHS services, which are in high demand, have seen operating costs surge by 30% to 40% since 2019.

With Department of Health funding failing to keep pace, many practices are unable to provide affordable care to patients. Indeed, anecdotal and evidential data shows that, in some areas of deprivation, young children are presenting with extreme tooth issues and have nowhere to go. In a joint statement earlier this month, Community Pharmacy NI, the British Medical Association NI, the British Dental Association NI and Optometry NI said:

“Medical, pharmacy, dental and optometry providers are the front door to the health service for families across Northern Ireland and vital for the transformation of care here. Yet these services are under extreme financial pressure, resulting in the closure of general practices.”

Indeed, the hon. Member for South Antrim (Robin Swann) mentioned that many GPs are being forced to hand back contracts. The statement continues:

“Without adequate protection from these UK Government policy changes, the precarious position of Family Practitioner Services in Northern Ireland will deteriorate further. It is now an urgent imperative for the UK Government to protect primary care or risk the collapse of these vital services in communities across Northern Ireland.”

I turn to the voluntary and community sectors. The voluntary sector employs over 55,000 staff in Northern Ireland and delivers essential services, often on behalf of Government. New research from the Northern Ireland Council for Voluntary Action has revealed the devastating impact this NIC increase will have on the sector. A recent NICVA survey of 68 organisations found that 76% expect major financial impacts, with additional costs of between £5,000 and £200,000 annually. One social care provider anticipates annual increases of up to £500,000. Many organisations predict inevitable redundancies, particularly in core administrative roles.