London Daily

Focus on the big picture.
Saturday, Feb 22, 2025

Social care tax rise: Boris Johnson wins Commons vote

Social care tax rise: Boris Johnson wins Commons vote

MPs have voted 319 to 248 for a 1.25 percentage point rise in National Insurance for workers and employers to help fund health and social care.

Boris Johnson hopes the tax increase, which breaks a Conservative manifesto pledge, will raise £12bn a year.

The prime minister said his plan would deal with "catastrophic costs" faced by those who need care.

But Labour raised concerns that people could still have to sell their home in order to pay for the help they need.

During a House of Commons debate, some Conservative MPs also raised objections to the proposals.

Former minister Steve Baker called on his party to "rediscover what it stands for" rather than "every time there is a squeeze on the public finances, coming back for higher taxes".

Opposition MPs voted against the rise but the government, which has a majority of more than 80, comfortably won the vote.

Five Conservatives - Sir Christopher Chope, Philip Davies, Neil Hudson, Esther McVey and John Redwood - voted against the changes.

Thirty-seven Conservative MPs abstained. However, while some abstained due to concerns about the tax rise, others may simply been given permission to miss the vote.

Health and care proposals


Politicians have long agreed on the need to reform England's social care system, which helps older and working-age people with high care needs to carry out tasks such as washing, dressing, eating and taking medication.

The key proposals of the new plan are:

*  People will no longer pay more than £86,000 in care costs - not including food and accommodation - over their lifetime, from October 2023
*  Once people have reached this cap, ongoing costs for personal care will be paid for by local authorities
*  Those with between £20,000 and £100,000 in assets will get means-tested help towards costs from their local council
*  Those with less than £20,000 will not have to pay towards care costs from their assets at all, but might have to contribute from their income
*  The tax will be raised through a 1.25 percentage point rise in National Insurance - which working people and their employers pay - from next April
*  Income from share dividends - earned by those who own shares in companies - will also see a 1.25% tax rate increase
*  The NI rise will cost £255 a year for someone earning £30,000, and £505 a year for someone on £50,000, the government says

Currently workers pay 12% National Insurance on earnings between £9,564 and £50,268. However, anything earned above this amount attracts a rate of just 2%.

Mr Johnson has said the majority of the £36bn fund raised by the tax rise will go towards catching up on the backlog in the NHS created by Covid.

A smaller portion of the money - £5.4bn over the next three years - will also go towards changes to the social care system, with more promised after that.

The UK-wide tax will be focused on funding health and social care in England, but Scotland, Wales and Northern Ireland will also receive an additional £2.2bn to spend on their services.

From 2023, the increase in National Insurance will become a separate levy, while the National Insurance rates will return to their previous level.


Shadow chancellor Rachel Reeves said that under Mr Johnson's plan "someone with a house worth £186,000 would still have to pay £86,000 even with this cap - and that's before living costs of going into a care home."

"How does the chancellor suggest they pay those fees without selling their home?" she asked.

Along with Labour, the SNP also voted against the government's proposals, with its Westminster leader Ian Blackford accusing the Conservatives of "taxing Scottish workers twice" and "forcing them to pay the bill for social care in England as well as at home in Scotland".

And Liberal Democrat leader Sir Ed Davey said the prime minister had failed to come up with a plan to tackle care staff vacancies or help unpaid family carers.

Conservative MP Jake Berry was among the critical voices from the government's own backbench, warning ministers that "throwing other people's money down a bottomless pit doesn't become a good idea if you put the NHS logo next to it".

Mr Johnson sought to reassure his own MPs ahead of the vote, telling a meeting of backbenchers: "We should never forget we are the party of low taxation."

Newsletter

Related Articles

0:00
0:00
Close
Good News: Senate Confirms Kash Patel as FBI Director
Officials from the U.S. and Hungary Engage in Talks on Economic Collaboration and Sanctions Strategy
James Bond Franchise Transitions to Amazon MGM Studios
Technology Giants Ramp Up Lobbying Initiatives Against Strict EU Regulations
Alibaba Exceeds Quarterly Projections Fueled by Growth in Cloud and AI
Tequila Sector Faces Surplus Crisis as Agave Prices Dive Sharply
Residents of Flintshire Mobile Home Park Grapple with Maintenance Issues and Uncertain Future
Ronan Keating Criticizes Irish Justice System Following Fatal Crash Involving His Brother
Gordon Ramsay's Lucky Cat Restaurant Faces Unprecedented Theft
Israeli Family Mourns Loss of Peace Advocate Oded Lifschitz as Body Returned from Gaza
Former UK Defense Chief Calls for Enhanced European Support for Ukraine
Pope Francis Admitted to Hospital in Rome Amid Rising Succession Speculation
Senate Republican Leader Mitch McConnell, at the age of 83, Declares His Retirement.
Whistleblower Reveals Whitehall’s Focus on Kabul Animal Airlift Amid Crisis
Politicians Who Deliberately Lie Could Face Removal from Office in Wales
Scottish Labour Faces Challenges Ahead of 2026 Holyrood Elections
Leftwing Activists Less Likely to Work with Political Rivals, Study Finds
Boris Johnson to Host 'An Evening with Boris Johnson' at Edinburgh's Usher Hall
Planned Change in British Citizenship Rules Faces First Legal Challenge
Northumberland Postal Worker Sentenced for Sexual Assaults During Deliveries
British Journalist Missing in Brazil for 11 Days
Tesco Fixes Website Glitch That Disrupted Online Grocery Orders
Amnesty International Critiques UK's Predictive Policing Practices
Burglar Jailed After Falling into Home-Made Trap in Blyth
Sellafield Nuclear Site Exits Special Measures for Physical Security Amid Ongoing Cybersecurity Concerns
Avian Influenza Impact on Seals in Norfolk: Four Deaths Confirmed
First Arrest Under Scotland's Abortion Clinic Buffer Zone Law Amidst International Controversy
Meghan Markle Rebrands Lifestyle Venture as 'As Ever' Ahead of Netflix Series Launch
Inter-Island Ferry Services Between Guernsey and Jersey Set to Expand
Significant Proportion of Cancer Patients in England and Wales Not Receiving Recommended Treatments
Final Consultation Launched for Vyrnwy Frankton Power Line Project
Drug Misuse Deaths in Scotland Rise by 12% in 2023
Failed £100 Million Cocaine Smuggling Operation in the Scottish Highlands
Central Cee Equals MOBO Awards Record; Bashy and Ayra Starr Among Top Honorees
EastEnders: Four Decades of Challenging Social Norms
Jonathan Bailey Channels 'Succession' in Bold Richard II Performance
Northern Ireland's First Astronaut Engages in Rigorous Spacewalk Training
Former Postman Sentenced for Series of Sexual Offences in Northumberland
Record Surge in Anti-Muslim Hate Crimes Across the UK in 2024
Omagh Bombing Inquiry Concludes Commemorative Hearings with Survivor Testimonies
UK Government Introduces 'Ronan's Law' to Combat Online Knife Sales to Minors
Metal Detectorists Unearth 15th-Century Coin Hoard in Scottish Borders
Woman Charged in 1978 Death of Five-Year-Old Girl in South London
Expanding Sinkhole in Godstone, Surrey, Forces Evacuations and Road Closures
Bangor University Announces Plans to Cut 200 Jobs Amid £15 Million Savings Target
British Journalist Charlotte Peet Reported Missing in Brazil
UK Inflation Rises to 3% in January Amid Higher Food Prices and School Fees
Starmer Defends Zelensky Amidst Trump's 'Dictator' Allegation
Zelensky Calls on World Leaders to Back Peace Efforts in Light of Strains with Trump
UK Prime minister, Mr. Keir Starmer, has stated that any peace agreement aimed at ending the conflict in Ukraine "MUST" include a US security guarantee to deter Russian aggression
×