London Daily

Focus on the big picture.
Friday, Jul 03, 2026

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
Luxury bags take over the World Cup: style, status symbol, or just showing off?
UK Parliamentary Committee Launches Inquiry Into Falling Primary School Rolls and Public Service Impact
UK House of Lords Debates Electoral Commission Powers and Political Finance Reform
UK Parliament Considers Expanding Carbon Rules to International Aviation and Shipping Emissions
UK Traffic Commissioner Revokes Hampshire Haulage Operator Licence Over Regulatory Failures
UK Parliament Examines Risks in Public Contracts Awarded to Technology Firm Palantir
UK Competition Watchdog Moves Toward More Flexible Merger Rules to Support Efficiency and Growth
UK Government Seeks Approval for £1.15 Trillion Public Spending Plan Amid Scrutiny Over Department Budgets
UK Parliament Debates Sweeping National Security and Steel Industry Nationalisation Bills
UK Government Issues Formal Apology for Historic Forced Adoption Practices and Announces £4 Million Support Scheme
UK DEFENCE AND TECHNOLOGY STRATEGY TILTS TOWARD SOVEREIGN CAPABILITY AND INDUSTRIAL INVESTMENT
UK ECONOMIC POLICY OUTLOOK SHAPED BY LEADERSHIP TRANSITION AND FISCAL SIGNALS
STERLING STRENGTHENS AMID SHIFTING MONETARY OUTLOOK AND GLOBAL LABOUR MARKET SIGNALS
UK HPV VACCINATION PROGRAM NEARLY ELIMINATES CERVICAL CANCER DEATH RISK IN YOUNG WOMEN
UK EXPANDS PRISON SAFETY REVIEW AS GOVERNMENT SEEKS WIDER SYSTEM REFORM
UK DRIVES DIGITAL ASSETS STRATEGY WITH NEW STABLECOIN REGULATORY MODEL
UK TO EXPAND AI INFRASTRUCTURE THROUGH NEW EUROPEAN TECHNOLOGY PARTNERSHIP
UK LAUNCHES £15 BILLION DEFENCE TECH SHIFT TOWARD ADVANCED MILITARY SYSTEMS
CIVIL SERVICE FACES SHIFT IN POWER STRUCTURE AS REGIONAL GOVERNANCE PLANS EXPAND
WHITEHALL CONSIDERS MAJOR DECENTRALISATION PLAN WITH SECOND GOVERNMENT HUB IN MANCHESTER
UK TARGETS SERVICES EXPORT GROWTH IN TRADE TALKS WITH CHINA AMID GEOPOLITICAL TENSIONS
POLICE WATCHDOG PROBES OFFICERS OVER HANDCUFFING OF DYING TEENAGER IN HAMPSHIRE CASE
UK REGULATORS UNVEIL DUAL OVERSIGHT FRAMEWORK FOR STABLECOINS AND DIGITAL ASSETS
KEIR STARMER ANNOUNCES £15 BILLION DEFENCE TECHNOLOGY BOOST IN FINAL MAJOR POLICY MOVE
ANDY BURNHAM SIGNALS STRICT FISCAL RULES AS LABOUR LEADERSHIP RACE SHAPES MARKET OUTLOOK
POUND STERLING HITS ONE-YEAR HIGH AS BANK OF ENGLAND SIGNALS NO IMMINENT RATE CUTS
UK Government Confirms Rejected Asylum Seekers to Remain Amid Enforcement Challenges
UK-China Economic Talks Focus on Services Trade and High-Value Sectors
Buckingham Palace Revamp Plans Unveiled to Modernise Royal and Public Facilities
Two Dead After Light Aircraft Crash in Essex Field, Investigation Underway
Princess Diana Marked at 65 With UK Tributes Reflecting on Her Public Legacy
England Teachers Face New Pay Cap Rules for Academy School Leaders Under Education Reform
Dublin Security Alert Escalates After Stabbing and Reports of Transport Disruption
UK Government Faces Scrutiny Over £10,000 Asylum Living Cost Contribution Requirement
England Prepares World Cup Knockout Match Against Democratic Republic of Congo
Northern Rail Project Warned of HS2-Style Cost Risks by UK Parliamentary Committee
UK Tightens Asylum Rules as Most Rejected Applicants Expected to Remain in Country
UK Heat Health Alert Issued as Temperatures Expected to Exceed 30°C Across England
Halifax Brand to Disappear From UK High Streets in Lloyds Banking Group Restructuring
England Teachers Receive 6.6 Percent Pay Rise Over Two Years as Schools Warn of Budget Strain
UK Defence Spending Plan Sparks Budget Clash as Regional Infrastructure Projects Face Pressure
Inquest Continues in Northern Ireland into Death of Noah Donohoe in Belfast
UK Travel Industry Calls for Suspension of New EU Border System During Peak Holiday Season
Telegraph Media Group Acquired by German Media Firm in £575 Million Deal Completion
House of Commons Warns Northern Rail Upgrade Risks Repeating High-Speed 2 Cost Overruns
UK Transport Unions Warn of Summer Strike Action Over Pay Disputes
UK Health Secretary Calls Maternity Care Review a “Watershed Moment” for NHS Reform
Nigel Farage Faces Questions Over £270,000 Payment Linked to Gold Marketing Firm
Labour Government Faces Internal Division Over North Sea Oil and Gas Policy Direction
National Screening Committee Invites New Proposals for UK Health Screening Programmes
×