Health and Social Care Levy

Nigel Evans Excerpts

1st reading
Wednesday 8th September 2021 Commons Chamber

[Mr Deputy Speaker (Mr Nigel Evans)]

I inform the House that Mr Speaker has selected amendment (c) in the name of the official Opposition. I remind the House that, under the terms of the business of the House order of today, the amendment will be moved formally at the end of debate.

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[Rachel Reeves]

I will come on to that in a moment, but that sums it up. You went into the election with a set of promises, and now you are breaking them one by one.

[Mr Deputy Speaker (Mr Nigel Evans)]

Order—[Interruption.] Hon. Members should resume their seats. This is an emotionally charged debate—I fully appreciate that—but as Mr Speaker has pointed out, Members must not use the word “you” unless they are referring to the Chair. Please remember that.

[Rachel Reeves]

I will clarify: Conservative Members are breaking their promises one by one by one. The Government will claim that that is all down to the pandemic, but in March this year—a year into the pandemic—the Chancellor promised that national insurance would not go up. He said,

“this Government are not going to raise the rates of income tax, national insurance or VAT…Nobody’s take-home pay will be less than it is now”.—[Official Report, 3 March 2021; Vol. 690, c. 256.]

Another Tory promise up in flames. That was not before the pandemic; it was a year into it, and a matter of months later this bombshell on work to fund social care is a broken promise. It is unfair, and it is a tax on jobs.

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[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. As Members can see from the Annunciator, there is a five-minute limit on all Back-Bench contributions. We will start with Mel Stride.

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[Nadia Whittome (Nottingham East) (Lab)]

Yesterday, the Prime Minister said that universal social care would be too expensive. That is exactly what the Conservatives said about the NHS in 1945 when they voted against it 21 times. They have argued that since and they will do so again if given the chance, as we heard from the right hon. Member for Gainsborough (Sir Edward Leigh) who, just minutes ago, described the NHS as a “socialist construct”.

A universal need demands a universal and freely accessible solution. None of us knows with certainty what will happen in our lives. Through disability, illness and old age, many of us will come to rely on social care if we do not do so already. The care we receive should not be a lottery based on wealth and postcode. We should all have the security of knowing that there will be someone to look after us no matter what. The NHS is there for all of us if and when we need it from the cradle to the grave. It has long been time for the social care system to provide the same.

We need a national care service funded by progressive taxation, including a wealth tax. The Prime Minister’s plans could not be further from that. Even the free market Adam Smith Institute condemned them as “morally bankrupt”, saying that the Government was asking

“poorer workers to bail out millionaire property owners.”

That comes just weeks before the Chancellor will plunge hundreds of thousands of families into poverty with his universal credit cuts.

Mr Deputy Speaker, you would struggle to design a more unfair and economically illiterate social care policy if you tried. Less than £1 in every £6 of the money raised will go to social care in the first three years of the plan. It is a triple whammy that the Government are presenting us with today: nowhere near enough money; not ringfenced for social care; and low-paid workers are funding it.

Why is it that Amazon is paying only 7.5% of its income in tax while a graduate on a standard starting salary is expected to give up around 50%? Let us be clear what this is really about; it is about protecting the inheritances of the very wealthy. What is the Government’s excuse for raising taxes on struggling people and for breaking their manifesto pledge? It is covid-19. We have heard it again and again today. I have seen at first hand, as have my former colleagues in Nottingham, how social care was in crisis well before the pandemic, and this Government cannot use covid-19 as a cover for 11 years of Tory failings, and they cannot use it as an excuse to take money from those who have been on the frontline and not from the billionaires who have profited from the pandemic, increasing their wealth by more than a fifth.

When I use the word “plan”, I am being generous. This is not a plan. It does nothing to fix the system that is broken at its core. A constituent emailed me about her experience. She is a care worker in the community. Her wages have not increased for four years. She does not get any travel expenses, pension contributions or sick pay. She works extremely long hours to make ends meet and often earns less than the minimum wage once she factors in travel and expenses. At the same time, her mum is terminally ill and has been waiting for five weeks to get support. She wants to be with her mum in her final weeks, but she is doubtful that she will be able to afford to get time off. Sadly, disgracefully, her story is not unusual, because our social care system does not work for those who rely on it or for those who are employed in it.

Instead of grappling with these deep-rooted problems, this Government are yet again, as the right hon. Member for Hemel Hempstead (Sir Mike Penning) admitted, kicking the can down the road. Instead of giving our care workers the pay rise that they deserve—[Interruption.] Will Government Members be quiet while we talk about the service that care workers have given during the pandemic? They deserve a pay rise, but instead Members on the Government Benches will be voting tonight to make sure that care workers are paying so that their wealthy donors do not have to.

How much longer must my former colleagues in the care sector wait for change? How many more families will be consigned to poverty because their care worker mum brings home less than the minimum wage? How many more disabled and elderly people will be confined to their homes, unable to live the kind of life they want? Anything less than a national care service, funded by a tax on the wealthy, not low-paid—

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I call Bim Afolami.

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[Several hon. Members rose—]

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. Peter Grant is next, and then the time limit will be reduced to four minutes.

Health and Social Care Levy Bill

Nigel Evans Excerpts

2nd reading
Tuesday 14th September 2021 Commons Chamber

[Duncan Baker]

I am sure the hon. Gentleman will remember the old adage that what goes up must come down, and, obviously, it could happen vice versa as well.

This Government have been incredibly financially prudent over the years. Most constituents around the country would say, “Thank goodness that we have had a Conservative Government looking after this country as they have produced one of the best responses to the pandemic in the entire world.”

What constituents want to see now are the tangible changes on the ground and the benefits. What we see today is probably one of the greatest welfare benefits that we have—the fact that there is a cap on how much a person pays in their later life for their care costs and that they will not have to sell their home will create security for a great number of people.

As the White Paper comes forward, I want to say three things to the Treasury and get these points on the record. First, I am a patron for the Holt Youth Project, which is a marvellous young people’s charity in my constituency. It has looked after some 50 young carers throughout the pandemic. Everybody knows that the life chances of young people are significantly affected as a result of looking after a sick or debilitated parent. I want to ensure that we can channel the funding that we get from this levy; there have been many asks today, including for dementia and other incredibly important causes, but please let us ensure that we fund young carers properly.

Secondly, let us ensure that unpaid carers are properly looked after. For those who take the burden off the state to care for their loved ones, the current allowance is £67 a week, at a cost to the Treasury of £3 billion a year. This must be looked at again.

Finally, let me address the recurring problem that we hear about all the time: the shortage of care workers. These people need to have the same high status and high regard as any NHS worker. We have to tackle and get to grips with the skills required to care for somebody with dementia or to give end of life care, and ensure that those care workers are properly rewarded.

[Mr Deputy Speaker (Mr Nigel Evans)]

To resume her seat no later than 4.45 pm—we will put the timer on—I call Nickie Aiken.

Health and Social Care Levy Bill

Nigel Evans Excerpts

Committee stage & 3rd reading
Tuesday 14th September 2021 Commons Chamber

[Mr Nigel Evans in the Chair]

[The Second Deputy Chairman of Ways and Means (Mr Nigel Evans)]

I should explain that although the Chair of the Committee would normally sit in the Clerk’s chair during a Committee stage, I will remain here in the Speaker’s chair while we still have screens around the table, although I will be carrying out the role not of Deputy Speaker, but as Chairman of the Committee. I should therefore be referred to as the Chair of the Committee rather than as the Deputy Speaker.

Clause 1

Health and social care levy

Question proposed, That the clause stand part of the Bill.

[The Second Deputy Chairman]

With this it will be convenient to discuss the following:

Amendment 8, in clause 2, page 2, line 21, at end insert—

“(1A) HMRC shall publish a forecast of the estimated costs of collecting the health and social care levy for the tax year 2023-24 by 31 March 2022.”

This amendment would require the Government to publish in advance of the levy coming into force its assessment of the extra costs of collecting the levy.

Amendment 7, page 2, line 23, after “cost” insert

“in current or future years”.

Amendment 1, page 2, line 28, leave out from first “as” to end of line 30 and insert

“determined by joint agreement between the Treasury and the devolved administrations of Wales, Scotland and Northern Ireland.”

This amendment would require agreement between the Treasury and the devolved administrations of Wales, Scotland and Northern Ireland as to the shares of the proceeds of the levy that are allocated between health and social care and between England, Wales, Scotland and Northern Ireland.

Amendment 4, page 2, line 29, leave out from “as” to end of line 30 and insert

“determined jointly by the Treasury and the devolved governments of Scotland, Wales and Northern Ireland.”

The amendment would require joint agreement between the Treasury and the governments of Scotland, Wales and Northern Ireland as to how the levy proceeds are to be shared between the four areas and between health care and social care.

Clauses 2 to 7 stand part.

New clause 1—Equality impact analysis—

“(1) The Chancellor of the Exchequer must review the equality impact of this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the impact of the Act on—

(a) households at different levels of income,

(b) households at different levels of wealth,

(c) equality between different ages, and

(d) impact between the nations of the UK and regions of England.

(3) In this section ‘regions of England’ has the same meaning as that used by the Office for National Statistics.”

This new clause seeks an equality impact assessment of the Bill covering households at different levels of income and wealth; equality between different ages; and the impact between the nations of the UK and regions of England.

New clause 2—Review of economic impact of Act—

“(1) The Chancellor of the Exchequer must review the economic impact in parts of the United Kingdom and regions of England of the changes made by this Act and lay a report of that review before the House of Commons within six months of the passing of this Act.

(2) A review under this section must consider the effects of the provisions of the Act on—

(a) business investment,

(b) employment,

(c) productivity,

(d) GDP growth, and

(e) poverty.

(3) In this section ‘parts of the United Kingdom’ means—

(a) England,

(b) Scotland,

(c) Wales, and

(d) Northern Ireland

and ‘regions of England’ has the same meaning as that used by the Office for National Statistics.”

This new clause seeks an economic assessment of the Bill on investment, employment, productivity, growth and poverty in the devolved nations and English regions.

New clause 3—Review of revenue effects of Act—

“(1) The Chancellor of the Exchequer must review the revenue effects of this Act and lay a report before the House of Commons within six months of the passing of this Act and every 12 months thereafter.

(2) Any review under this section must include an assessment of—

(a) the impact of this Act on revenue derived from—

(i) employment, and

(ii) self-employment; and

(b) the impact of the revenues under this Act from employment and self-employment on the revenues derived from taxation on—

(i) dividends,

(ii) rental income, and

(iii) other forms of personal income.”

This new clause would require the Chancellor to report to the House on the impact of the Act on tax revenue derived from different sources of income.

New clause 4—Review of impact of Act on business—

“(1) The Chancellor of the Exchequer must review the impact of this Act on business and lay a report before the House of Commons within six months of the passing of this Act and every 12 months thereafter.

(2) Any review under this section must provide a separate analysis of the impact of the Act on the operating costs and profits of—

(a) small and medium sized enterprises,

(b) large enterprises solely based in the UK, and

(c) large multinational enterprises.”

This new clause would require the Chancellor to report to the House on the impact of the Act on the operating costs and profits of different sizes of business enterprises.

New clause 5—Review of equality impact of Act—

“(1) The Chancellor of the Exchequer must review the equality impact of this Act and lay a report before the House of Commons within six months of the passing of this Act and every 12 months thereafter.

(2) A review under this section must provide a separate analysis of the equality impact of this Act on—

(a) income inequality,

(b) wealth inequality,

(c) geographical inequality,

(d) inequality between people with protected characteristics (within the meaning of the Equality Act 2010), and

(e) socio-economic status.”

This new clause would require the Chancellor to report to the House on the equality impact of the Act.

New clause 6—Report on levy expenditure shares—

“The Chancellor of the Exchequer must report to the House of Commons at the end of each financial year the share of the levy spent on—

(a) health care, and

(b) social care.”

This new clause would require the Chancellor to report annually to the House on the share of the levy spent on health care and on social care.

New clause 7—Report on levy revenue derived from those in the social care sector—

“The Chancellor of the Exchequer must lay a report before the House of Commons within six months of the passing of this Act, and every 12 months thereafter, containing an assessment of the levy revenue derived from those working in the social care sector.”

This new clause would require the Chancellor to report to the House on levy revenue derived from those working in the social care sector.

New clause 10—OTS Assessment of levy and National Insurance increase—

“(1) The Office for Tax Simplification shall publish by 30 September 2022 a report assessing the advantages and disadvantages of introducing the health and social care levy in comparison to the increase in National Insurance.

(2) The report shall include an assessment of the costs of HMRC in collecting the levy and for employers in complying with their obligations in relation to the levy.”

This new clause would require the OTS to publish by September 2022 its assessment of the merits of the levy in comparison with the increase in National Insurance, including costs of compliance with and collection of the levy.

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[Dr Murrison]

rose—

[The Second Deputy Chairman]

Order. Just before Dr Murrison makes a further intervention, can I ask the Minister please to face the microphone? Otherwise, Members will not be able to hear his responses; I have found it difficult to hear him.

[Jesse Norman]

I do apologise, Mr Evans.

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[Mr Deputy Speaker (Mr Nigel Evans)]

I would just like an indication of who will want to make independent speeches by bobbing—thank you.

[James Murray]

As we turn to the Bill’s Committee stage, I will address the new clauses tabled in my name and the name of my hon. Friend the Member for Erith and Thamesmead (Abena Oppong-Asare).

We know that social care desperately needs more funding and the Government claim that their Bill today will help to raise some of that money, but the truth is that there is nothing in this Bill that will guarantee a penny going towards social care. I will return to that point when I address new clause 6, but first I want to look at the core measure that this Bill introduces—the unfair tax rise on working people and their jobs. Our new clause 3 would require the Government to report to the House of Commons on the impact that the Bill will have on tax revenue derived from different sources of income. On the one hand, there is income from employment and self-employment, which the Government have chosen to tax hard. On the other hand, as new clause 3 mentions, there is income from dividends, rental properties and other sources of wealth, which the Government have left untouched. We know that the Government have chosen not to raise taxes for those with large portfolios of stocks and shares, and for landlords renting out multiple properties, but the Bill even lacks any mention of taxes on dividends, despite the Prime Minister saying that they would be taxed more. Perhaps when the Financial Secretary to the Treasury responds, he could explain why the Government have chosen to delay implementing a tax rise in dividends until the next Finance Bill or beyond. Will he give us his word that the increase in tax on dividends will definitely go ahead?