Summary

  • MPs vote by 319 to 248 to raise taxes to fund the NHS and social care

  • There will be a new 1.25% tax on workers and employers to fund health and social care

  • This breaks a Tory manifesto commitment not to increase taxes

  • National Insurance will increase from April 2022, with a separate tax introduced in 2023

  • It has been criticised by some Conservative backbenchers and opposition parties

  • The amount individuals have to spend on their care will be capped at £86,000 - not including accommodation costs

  • Labour says the change "hammers" working people, leave people still facing losing their homes to pay for care, and it may not clear NHS backlogs

  1. Thank you and good nightpublished at 19:53 British Summer Time 8 September 2021

    We've reached the end of the debating, and the subsequent passing of the health and social care levy in the House of Commons, so our live coverage will stop here.

    Thanks for joining us on what's been a busy day with news of the tax rise and an overhaul of the coronavirus foreign travel traffic light system.

    Your updates were written by George Bowden, Jennifer Meierhans, Mary O'Connor, Justin Parkinson, Kate Whannel and Sinead Wilson.

    The page was edited by Martha Buckley and Rob Corp.

    Have a good evening and we will be back with more live updates tomorrow.

  2. Watch: We must make investment now to clear NHS backlogs - PMpublished at 19:48 British Summer Time 8 September 2021

    Media caption,

    Boris Johnson on need to address NHS wait times

    In an interview with the BBC, Prime Minister Boris Johnson has insisted the government must make "the investment now" with the health and social care levy if NHS treatment backlogs are to be cleared.

    He tells the BBC's Health Editor Hugh Pym, that around 9 million NHS treatments could be funded by proposed government investment, but did not give details of targets.

  3. New health and social care tax: The fors and againstspublished at 19:38 British Summer Time 8 September 2021

    The new 1.25% tax to pay for the NHS and a social care reform is through.

    The Tories say it will bring an investment of £36bn in the health and care system over the next three years.

    This, according to chief secretary to the Treasury Steve Barclay, will pay for the social care system to be reformed "ending unpredictable and catastrophic care costs faced by thousands and making the system fairer for all".

    The new tax means people will no longer pay more than £86,000 in care costs - not including food and accommodation - over their lifetime, from October 2023.

    Labour were against the plan with leader Sir Keir Starmer saying it was unfair on working people.

    He says: "Under his plan, a landlord renting out dozens of properties won't pay a penny more, while their tenants in work will face tax rises of hundreds of pounds a year."

    The SNP also opposed the move, with its Westminster leader Ian Blackford calling it a "regressive tax" on millions of Scottish workers without consultation.

    And Liberal Democrat leader Sir Ed Davey - who is also a carer for his disabled son - said the plan "forgot family carers" who just want "a fair deal".

    We've got the key changes here and you can work out how it will affect you here.

  4. What’s the new Health and Social Care tax and how will it affect me?published at 19:31 British Summer Time 8 September 2021

    MPs have voted for an extra tax to fund social care in England - and help the NHS recover after the pandemic.

    There had been criticism - including from within the Conservative Party - that it will be unfair on younger people and the lower paid.

    Under the proposals, employees, employers and the self-employed will all pay 1.25p more in the pound for National Insurance from April 2022.

    From April 2023, National Insurance will return to its current rate, and the extra tax will be collected as a new Health and Social Care Levy.

    This levy - unlike National Insurance - will also be paid by state pensioners who are still working.

    National Insurance is a UK-wide tax - and while Boris Johnson's announcement focuses on funding health and social care in England - Scotland, Wales and Northern Ireland will also receive an additional £2.2bn to spend on their services.

    You can read more here.

    How much more will employees pay?
  5. Government wins health and social care levy votepublished at 19:29 British Summer Time 8 September 2021
    Breaking

    MPs back the government's plan to raise taxes to fund spending on the NHS and social care.

    It gets through by 319 votes to 248 - that's a margin of 71.

  6. MPs voting on government NHS and social care tax planpublished at 19:16 British Summer Time 8 September 2021

    MPs have voted against a Labour amendment calling for an assessment of the plan to bring in a new 1.25% tax for the NHS and social care.

    They will now go to a vote on the substantive measure.

    If it goes through National Insurance will increase from April 2022, with a separate tax introduced in 2023

    We will bring you the result as soon as we have it.

    While we wait why not read up on what it could mean:What’s the new Health and Social Care tax and how will it affect me?

  7. MPs vote on Labour amendment over new 1.25% taxpublished at 19:09 British Summer Time 8 September 2021

    The debate is over after nearly five hours and MPs have gone to vote on a Labour amendment to the government's plan to bring in a new 1.25% tax to pay for the NHS and social care.

    Labour want the government to carry out an assessment on what the impact of the tax will be on jobs.

    We will bring you the result as soon as we have it.

  8. Plan 'will end unpredictable and catastrophic care costs'published at 19:01 British Summer Time 8 September 2021

    Steve Barclay, chief secretary to the Treasury, has been summing up the government's case for introducing a new 1.25% tax to pay for the NHS and to reform social care.

    "The pandemic has put unprecedented pressure on the NHS with the number of people waiting for surgery or treatment in England is now at a record high of 5.5 million and if left unchecked this could rise to 13 million," he says.

    He says at the same time the country is facing a long-standing challenge to the social care system.

    "Typically around one in seven must pay over £100,000 for care, with bills falling indiscriminately on some of the sickest and most vulnerable in society," he says.

    The government's plan would mean an investment of £36bn in the health and care system over the next three years, he says.

    "The social care system will finally be reformed ending unpredictable and catastrophic care costs faced by thousands and making the system fairer for all," he says.

  9. Government's social care plan a 'broken promise' to working householdspublished at 18:58 British Summer Time 8 September 2021

    Labour's shadow chief secretary to the Treasury Bridget Phillipson is summing up now.

    She says while it's been a good debate, what's been most striking is how "inadequate a basis it has been for a change of this magnitude to the tax system of our country".

    There have been a number of "sharp and insightful" contributions from Labour MPs, including the point that the measures would not improve the lot of care workers, who were now facing a tax rise, she says.

    Phillipson cites the views of other MPs that the proposals do not represent a proper plan for the NHS or for social care.

    "It is instead a broken promise, two-and-a-half million working households hit by the Tory double whammy of cuts to Universal Credit and an increase in National Insurance," she adds.

    Phillipson reiterates the point that it is "ludicrous" that landlords will not have to "pay a penny" more under the new tax, but that tenants, many who might be working in the NHS, "are about to be clobbered by a tax rise" - adding that about 95% of the revenue will come from taxing workers' wages.

    She criticises the lack of notice given to MPs to approve the government's plans, saying it lacks the scrutiny needed for plans that have such "universal" impact.

    Phillipson says as well as a "strong and skilled social care workforce", Labour would deliver a "new deal" for care workers to create a "well motivated and properly rewarded workforce" that would give support to unpaid carers.

  10. 'This is probably the least worst option' - Tory MPpublished at 18:50 British Summer Time 8 September 2021

    Tory MP Jack Brereton says he has been contacted by hundreds of constituents about the need for more investment in social care and the challenges they face of accessing healthcare and medical treatment.

    "No decision to invest more to the scale required is going to be easy - and money must come from somewhere.

    "I think what we've arrived at is probably the least worst option.

    "The approach taken will ensure this burden is spread as broadly as possible, so all those with earned income streams must contribute and protections are in place to protect those on lowest incomes."

  11. Social care should not be mixed up with NHS - Bonepublished at 18:42 British Summer Time 8 September 2021

    Veteran Conservative MP Peter Bone says the government was "creating a new tax...without having the detail."

    He says: "Whilst I support the idea of more money for the NHS - and I have no objection to it being done through National Insurance - I absolutely object to saying that this has got anything to do with the care bill because that hasn't been introduced.

    "Social care should be paid for separately. There should have been a social care bill, we should have had the bill, we should have been able to debate the principle of that and then immediately afterwards voted on the ways and means but we've got this mixed up."

  12. Conservative MP voices concerns over new taxpublished at 18:39 British Summer Time 8 September 2021

    Conservative MP Huw Merriman reiterates the need to "act now" to reform health and social care in England and welcomes the "decisive action" being taken by the government.

    However he says he has concerns around the new tax - with the first being the political difficulty of getting the money initially being funnelled into the NHS into social care.

    He tells the Commons: "We know how difficult it is to convince people that a temporary lift to Universal Credit was just temporary, how on earth are we going to challenge the equivalence of Marcus Rashford when it comes to the NHS in persuading people that this wasn't a cut but just a plan for a period of time and then we move the money to social care?"

    He also cites the "inter-generational unfairness" of expecting young people without a home of their own to fund social care through a hike in National Insurance, rather than the older people with nest eggs or their own homes who would be using the service sooner.

    Thirdly, he says the Tories will have to look to "rein in" public spending and allocate money for the NHS with "strict criteria" on how it is going to be spent.

    Merriman indicates he will support the government in the vote but wants them to look at some of the alternative measures he's suggested.

  13. Analysis

    The points of the compass are on the movepublished at 18:32 British Summer Time 8 September 2021

    Laura Kuenssberg
    Political editor

    The emergency of the pandemic, which demanded spending and borrowing that busted all norms, has faded.

    But the prime minister's fondness for splurging billions when he sees fit has not.

    The last 24 hours have sealed Boris Johnson's existing reputation: a Conservative who says he'd love low taxes, but when there's spending that he perceives is popular, that affection swiftly disappears.

    Read Laura's blog in full

  14. I'm going to look on the bright side' - Tory MPpublished at 18:25 British Summer Time 8 September 2021

    Tory MP Ben Everitt says he's going to try to be optimistic and pull out the good things in the hard choices the government faces.

    He says there are never any good options for raising taxes but "raising taxes on having a job is possibly the thing that should be at the bottom of the list when we look at new areas of income".

    He says: "The £86,000 cap needs to be met and tweaked with a regional house price element to recognise that houses are worth more in one area of the country than others."

    "I will vote for this. Our job in this place is to make good laws and we need to do that at every stage and this is a tricky problem."

  15. How's the debate going?published at 18:12 British Summer Time 8 September 2021

    MPs have been debating a new 1.25% tax - initially through National Insurance - to pay for health and social care for about three and a half hours. Here are some of the main points that have been made:

    • Jesse Norman, financial secretary to the Treasury, says the move will support health and social care in the aftermath of the pandemic and lay the long-term basis for social care for generations to come.
    • Conservative MP Paul Bristow says if we are going to face up to the "enormous challenge" in the NHS then it needs to be paid for
    • And Tory Bim Afolami says National Insurance is the best way to raise the money to deal with both health and social care and tackling the backlogs in the NHS.
    • Labour confirms it will tell its MPs to vote against the proposals because "they don't fix social care, they won't clear the backlog and it's an unfair tax rise", a spokesman says
    • Shadow chancellor Rachel Reeves says the party will put forward an amendment calling for an assessment on jobs
    • Alison Thewliss, SNP Treasury spokesperson, says Scottish people were being asked to pay for England-only policies which impacted those the government "should be thanking - not taxing"
    • Tory backbencher Jake Berry says he won't vote for the tax rise later because low earners will be disproportionately impacted
    • And fellow backbencher Steve Baker says he will not vote for the measure because someone has to "stand up for a different path"

    MPs are expected to vote around 19:00 BST and we will bring you the result as soon as we have it.

  16. There is no 'clear plan' from Johnson's government - Reevespublished at 18:00 British Summer Time 8 September 2021

    Shadow chancellor Rachel Reeves says the government's plan for social care fails Labour's two tests - that it will fix the problems in the sector and is being funded in a fair way.

    Speaking to BBC Radio 4's PM programme, she says Labour would ask those with the "broadest shoulders" to contribute more "and not just go to those who go out to work and earn a wage".

    Asked what taxes Labour would raise in their plan to fix social care, she said the party would set out those details in "due course" but that the party would seek to tax "all forms of income", not just those who work.

    Challenged on why ex-Labour PM Gordon Brown used National Insurance to increase NHS funding back in 2002, she insists there were "very different economic circumstances" back then.

    She adds that while Brown had "come forward with a plan" to cut waiting times and get health spending up to the European average - today's Tory government lacked any "clear plan" in its proposals.

    "The government can't even say when the backlog of operations will be clear, they can't even say when the money will go into our social care system, and they can't even meet the test that no one will have to sell their home to pay for social care," she says.

  17. Can Northern Ireland's funding be ring-fenced?published at 17:43 British Summer Time 8 September 2021

    Jim Shannon of the Democratic Unionist Party asks for guarantees that the money Northern Ireland will receive from the tax will be used only to help reform health and social care and not for anything else.

    Reading from a document, he says Northern Ireland is due to get around £420m a year from the new tax, but "there is no indication that the Northern Ireland executive will be required to spend it on the purpose for which it was raised, since the government, it appears, cannot ring-fence the money".

    He asks if Northern Ireland's share can be ring-fenced for health and social care and whether this will apply to all future monies sent there.

    "What guarantees do we have that every single employed person, every single pensioner, every single business owner, that their sacrifice will bring about necessary change, and not be lost in the ether of politics at Stormont?"

  18. Extra funds must improve outcomes for patients - Tory MPpublished at 17:29 British Summer Time 8 September 2021

    Conservative Dr Andrew Murrison says this could be a historic moment in which we sort out the problems in health and social care and he will be voting "enthusiastically" with the government later.

    And using National Insurance to raise the extra funds is progressive, he adds.

    But the challenge for ministers is to turn the money going to providers in to better outcomes for patients, he adds.

    Improving productivity in the NHS has to be a priority and sickness levels need to be driven down, he argues.

  19. 'Mum's house was sold to pay for her care - but the money is running out'published at 17:16 British Summer Time 8 September 2021

    Anna George's 91-year-old mother has been in a British Legion Care Home since October 2019, where she lives in a dementia unit.

    She says her mother's home was sold to pay the £4778.43 cost of her care over a 31-day month.

    But the family are worried as there is only enough money left to fund 10 more months of care.

    Anna, 68, who lives in Northamptonshire, says: “When we get down to the final £23,000 we inform social services and we then pay a percentage to contribute to the continued care. I don’t know how much.

    “It’s pretty scary for us because it’s not that far away now for us now."

    She welcomes the new tax, but argues it has come "too late" for her family.

    “My parents worked hard to own their home and to have something to give their children but their hopes are dashed now.

    “I know people think this tax is unfair on younger, working people but we’re losing our inheritance.

    Hopefully, with this new system that won’t happen for the younger generation when they reach the stage in life of needing social care."

  20. Is the PM keeping pledge on people forced to sell homes for care?published at 17:13 British Summer Time 8 September 2021

    Reality Check

    Woman in a care homeImage source, Getty Images

    At prime minister’s questions, Boris Johnson was asked by the Labour leader, Sir Keir Starmer, whether his previous guarantee that “no one who needs care has to sell their home to pay for it” still stood.

    Mr Johnson did not confirm whether it did. The pledge was in the Conservatives’ 2019 manifesto.

    When the Health Secretary, Sajid Javid, was asked about on the BBC’s Today programme he said: "We will also make sure that everyone is able to access what's called the deferred payment agreement... which means no one will ever have to sell their house in their life time."

    We’ve looked at the pledge, how the language has changed and whether it can be met under the new plans.

    You can read what we found here.