London Daily

Focus on the big picture.
Monday, Jun 29, 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
Welsh Government Unveils New Agricultural Support Plan Focused on Sustainability and Rural Growth
UK Teacher Recruitment Shortfalls Continue in Science and STEM Subjects
Police Scotland Expands Cybercrime Investigations Amid Rising Digital Fraud
UK Universities Warn of Risk to International Student Numbers Amid Visa Changes
UK Defence Ministry Pivots Toward Greater Domestic Military Procurement
UK Launches National Rail Review After Repeated Service Disruptions
Northern Ireland Assembly Debates Long-Term Funding Settlement for Public Services
UK Accelerates Approval of North Sea Offshore Wind Projects to Expand Energy Capacity
UK Retail Sales Fall as Households Cut Discretionary Spending in June
UK Expands Border Intelligence Cooperation with France and Belgium to Target Smuggling Networks
Scottish Government Faces Pressure Over Delays in Major Infrastructure and Transport Projects
UK Launches Multi-Billion-Pound Artificial Intelligence Infrastructure Investment Fund
National Health Service Warns of Continued Emergency Department Strain Across England
Bank of England Signals Interest Rate Hold as Wage Growth Keeps Inflation Elevated
UK Sets Emergency Fiscal Strategy as Inflation Pressures and Weak Manufacturing Growth Persist
UK Launches New Measures to Improve Safety Standards in Night-Time Venues
UK Tightens Import Rules for Low-Value Parcels to Support Domestic Retailers
UK Launches £85 Million Obesity Care Programme Targeting Early Intervention Projects
UK Commits Up to $26 Million to Ebola Response in Democratic Republic of Congo
Security Industry Authority Flags Safety Failures in Night-Time Economy Inspections
Cambridge South Railway Station Opens After £250 Million Investment
UK Moves to Close Import Duty Loophole for Small Parcels by 2028
UK Invests £85 Million in Projects to Transform Obesity Care
Berkeley Group Warns London Housebuilding Falling Far Short of Demand
UK Council Tax Arrears Rise to £9.3 Billion Amid Ongoing Household Financial Strain
Markets Watch Political Transition as Andy Burnham Emerges as Labour Leadership Frontrunner
Extreme Heat Raises Long-Term Risks for UK Inflation and Productivity, Analysts Warn
UK Health Alerts Extended as Record June Heatwave Grips England
UK Parliament Faces High-Stakes Week of Spending, Security and Industrial Legislation
UK Repeals Vagrancy Act Ending Criminalisation of Rough Sleeping in England and Wales
GB News Pundit Charged With Fraud Over Alleged Conduct as Former Labour Adviser
Reform UK Gains Parliamentary Visibility in First Senedd Opposition Appearance
Metropolitan Police Arrest Man on Suspicion of Attempted Murder After London Car Incident
Ocado Chief Executive Tim Steiner Faces Scrutiny Over £100 Million Remuneration Package
British Chambers of Commerce Downgrades UK Growth Outlook to 0.9 Percent for 2026
Nottingham University Hospitals Maternity Failings Trigger Renewed Calls for Public Inquiry
Severe Heatwave Disrupts UK Transport Networks and Strains Public Services Across England
Labour Leadership Transition Raises Prospect of Andy Burnham Becoming UK Prime Minister
UK Government Confirms Further Medicine Price Concessions for Community Pharmacies in June
British Chambers of Commerce Calls for Public Procurement Reform to Boost Regional Growth
Thousands Mark Armed Forces Day Across the United Kingdom With National Parades and Flypasts
Man Arrested in Ealing on Suspicion of Attempted Murder After Vehicle Ramming Incident Injures Five
Cambridge South Station Opens With £250 Million Investment to Strengthen Life Sciences Corridor
UK Heat-Health Alerts Extended Across England as High Temperatures Persist
Thames Water and Energy Operators Warn of Peak Demand Risks During UK Heatwave
Government Conference Highlights Push for Evidence-Led Policy Across UK Public Sector
Insolvency Service Reports Improved Confidence in UK Insolvency System
Security Industry Authority Finds Widespread Safety Failures in UK Night-Time Economy
Nigel Farage Expands Anti-WHO Campaign Into United States With New Lobbying Structure
Home Secretary Seema Mahmood Unveils New Safe Routes Plan for Asylum Seekers
×