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. No attempt to achieve consensus on reform - SNPpublished at 17:10 British Summer Time 8 September 2021

    The SNP's Dr Philippa Whitford says there was no attempt at cross-party contact or to achieve consensus and agree a long-term solution.

    She says this will hit the "key workers we were clapping for 18 months ago" and the younger generation who have been "hit in multiple directions".

    The plan will take money out of local economies, reduce spending power and lead to an increase in poverty, which in turn drives poor health, she argues.

  2. Social care left in the 'too-difficult box' too long - Conservativepublished at 17:10 British Summer Time 8 September 2021

    Conservative Natalie Elphicke says for too long social care has been left in the "too difficult to solve box" but MPs are elected to do the hard things as well as the easier and that is what ministers are doing.

    The reality is that whatever is put forward, Labour will oppose it she says.

    No Conservatives like tax rises, she adds, but says she recognises and accepts that something has to be done.

    We must continue to modernise and make every penny and pound count on the front line, she says.

  3. Frontline NHS and social care workers hit hardest - Lib Demspublished at 17:08 British Summer Time 8 September 2021

    Liberal Democrat Christine Jardine says she came in to the debate "desperate to support a plan that would see investment in a system set up to provide care" for people and their loved ones.

    But she says "this so-called plan" does not do any of that.

    Rather, it is a tax hike for on young people and the lowest paid, in breach of the government's promises she says.

    The frontline NHS and social care workers and public sector workers like the police will be hit hardest by this she adds.

    While many people are struggling to get out of debt after the pandemic, they are being hit with extra costs she says.

  4. Government's proposals have not fixed the social care problems - Smythpublished at 17:07 British Summer Time 8 September 2021

    Labour MP Karin Smyth urges the government not to become complacent in thinking it has "fixed" the crisis in social care in England with its proposals.

    She refers to her comment in the Commons yesterday that Johnson may have "broken the dam", which she says the PM appeared "slightly confused" by.

    "That's because he thinks he's now fixed the problem. The trio of the prime minister, the chancellor, the health secretary looked very comfortable with themselves yesterday. They are very wealthy men, they seemed to have heard something, but this has not fixed it.

    "They need to understand that behind the dam is a torrent of questions, costings and aspirations, none of which the government seems prepared to acknowledge."

    She adds that the government's proposals "do not represent a sustainable plan" but a "shoddy nod, just pushing it through without even lip service to the scrutiny it needs".

    However she concedes that the PM deserves "a sliver of credit" for bringing forward a plan for social care "at some political risk" - but adds that there must be "an honest and thorough debate" in the Commons and across the country about it.

  5. We can't afford the promises made to older people - Tory Steve Bakerpublished at 16:35 British Summer Time 8 September 2021

    Conservative Steve Baker asks what would Labour do if they were in power?

    The reality is one of the big taxes needs to be changed to deal with the scale of the problem, he says.

    Labour put up National Insurance contributions the last time they were in power and would do so again, he argues.

    He says the public finances are in an unsustainable position and sooner or later we will find the state cannot afford the promises it has made to older people.

    This is just the beginning of a generational crisis, he warns, and we are in a "dreadful position".

    We all know we can't let NHS waiting lists climb but we are going to have to do things differently, he says, without continuing to come back for higher taxes.

    He says he won't be voting with ministers tonight because someone has to "stand up for a different path".

  6. Why tax pay packets more instead of property?published at 16:33 British Summer Time 8 September 2021

    Faisal Islam
    BBC Economics Editor

    HMRC documentImage source, Getty Images

    It is difficult not to notice the reflections of the Resolution Foundation, that carers will be paying the hike in National Insurance, but not those they care for. Tenants will pay, but not landlords on their income from tenants.

    Productive work is taxed more. Unproductive wealth is largely left alone. While PAYE makes it relatively easy for HMRC to get hold of taxes on work, it is arguably easier to tax a property, which cannot move abroad, for example.

    Only one in six pensioner households has private earnings that could be hit by the new NI levy. The dividend tax raises about £600m.

    The political incentives have for decades stacked up on one side here. The voters that seem to matter most own homes that they do not want to be taxed, even beyond their lives.

    That is why successive governments reach for taxes on pay packets instead. While the "death tax" remains unthinkable, all that is left is the "jobs tax".

  7. We've not been told how this money is going to be spent - Labourpublished at 16:23 British Summer Time 8 September 2021

    Labour's Lloyd Russell-Moyle says: "We are coming out of a pandemic, everyone has suffered and suddenly putting a tax on small, medium-sized businesses and working people is the very last thing we need to do.

    "There is no plan for social care - we've been asked for a begging bowl but we've not really been told how the money is going to be spent.

    "How are we going to recruit those social care workers that currently are paid miserable wages for 15 minute appointments and no travel time?

    "It doesn't integrate social care into the NHS, which we desperately need," he says.

    He says he will be voting against it not because he thinks we need no action but this action is the "worst of all worlds".

  8. Social care measure a much-needed first step - Conservative MPpublished at 16:22 British Summer Time 8 September 2021

    Conservative Lucy Allan says initially she really struggled with the social care funding plan and thought she could not support it but she has since changed her mind.

    The enormous backlog in the NHS must be tackled, she says, and money needs to be raised.

    But she hopes "when this is all over, we can revert to proper Conservative tax policy".

    She says she has never been one to believe throwing cash at a problem will provide a solution, so we need to make sure "this is no blank cheque".

    Patient care and the experience patients have in hospital has to be the priority.

    The measure being voted on today is a "much needed first step", she adds.

  9. The NHS must not be an 'insatiable beast' - Conservative MPpublished at 16:19 British Summer Time 8 September 2021

    Conservative Julie Marson says she had a family member who had to sell her house to pay for care and another that avoided asking for care support.

    That's not something we want others to face going forward, she says, as we come out of the pandemic.

    She says she is "so pleased" that the government is grappling with long-term, intractable problems.

    Exceptional circumstances require exceptional measures, she says, and while there is no easy answer, ministers are making difficult decisions.

    Making sure the NHS is not "some sort of insatiable beast" that keeps demanding funds "is something we need to keep a grip on" she adds, and the extra investment must be accompanied by innovation.

  10. There's no levelling up in this tax - Labourpublished at 16:13 British Summer Time 8 September 2021

    Labour's Clive Efford says: "This is an unfair way to raise the money needed for our NHS and social care. Those who earn the least and the young are going to pay for those that are already well off. This is the biggest single tax increase in 70 years. This is the highest amount of tax paid in the UK in peace time and there's more to come in terms of council tax increases."

    "People earning as little as £10,000 will pay this increase, those who can afford to pay more, like ourselves here on these benches, should be asked to pay a fair share and not rely on those people to pay increased taxes.

    "People who have to count every penny to survive on a daily basis, to buy food, to pay rent, to pay travel costs, household bills, they have to budget day by day to live and they will have to tighten their belts.

    "But those of us on higher incomes who could pay more, whose lives will not be changed by this increase, will not have to tighten our belts at all."

    He says: "Those areas the Tories talk about levelling up will be the hardest hit."

  11. UK records 191 Covid deathspublished at 16:11 British Summer Time 8 September 2021

    There were a further 191 deaths reported in the UK within 28 days of a positive coronavirus test, according to the latest government figures., external

    There were also 38,975 new cases registered.

  12. Labour - This tax rise won't help elderly people wash, dress and eatpublished at 16:04 British Summer Time 8 September 2021

    Labour MP Steve McCabe says: "[This is] a tax rise to hit young workers, people who will never get the opportunity to buy a house, the self-employed struggling to get back on their feet, many of them ignored by this government during the pandemic. And employers struggling to get their businesses back on track now face a tax on jobs.

    "And the low-paid battling to keep life and limb together will end up subsiding others whose assets they can never hope to match."

    He says this is money to subsidise those who hope to inherit large properties from elderly relatives and for the disastrous cuts to the NHS for the period the Tories have been in office.

    Age UK estimates 1.5m people are in need of help with daily living who don't get it, he says.

    "This tax rise won't help people needing help with washing, dressing, eating and taking their medicine. This is a broken tax promise, a penalty for those who took a chance on voting Tory at the last election," he says.

  13. Devolution not undermined by social care plan - Scottish Conservative MPpublished at 15:56 British Summer Time 8 September 2021

    Scottish Conservative John Lamont praises ministers for tackling the problems in health and social care.

    He says their plan will help deal with "the whole catalogue of issues that Scotland's NHS is dealing with".

    Nothing in the plan undermines devolution he argues and instead provides "much needed extra resources" for the NHS.

    How can anyone not justify the extra funding coming to Scotland he asks and how can the SNP say "No" to people who are languishing on waiting lists.

    We must work as one United Kingdom tackle this collective challenge he adds.

  14. No other system would bring as much money in - Conservative MPpublished at 15:47 British Summer Time 8 September 2021

    Conservative Bim Afolami says he gives his "wholehearted support" to the government's plan and agrees national insurance is the best way to reform the social care system.

    He says there is no other system that would bring as much money in.

    The levy deals with both health and social care, he says, and tackling the backlogs in the NHS helps sort problems in the care system.

    He rejects the idea of pegging the tax to regional disparities in house prices saying it is better to have a broad-based plan that is applied everywhere.

  15. It's about protecting the inheritances of the very wealthy - Labourpublished at 15:42 British Summer Time 8 September 2021

    Labour's Nadia Whittome says: "You would struggle to design a more unfair and economically illiterate social care policy if you tried."

    "Less than one in every £6 of the money raised will go to social care in the first three years of the plan....This is nowhere near enough money. It's not been ring-fenced for social care and low-paid workers are funding it."

    She asks: "Why is it that Amazon is only paying around 7.5% of its income in tax when a graduate on a standard starting salary is expected to give up around 50%?"

    "Let's be clear what this is really about. It's about protecting the inheritances of the very wealthy."

    She says: "The care we receive shouldn't 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 us if and when we need it, from cradle to grave. It's long been time for the social care system to provide the same."

  16. Nothing is perfect but at least it is a plan - Conservative MPpublished at 15:32 British Summer Time 8 September 2021

    Conservative Sir Mike Penning says the issue of social care is raised in his constituency office every week.

    While the government's plan is "not perfect", he says, at least it is trying to do something about the problem rather than kicking the can down the road.

    The public expects MPs to help solve their problems he says.

    At the end of the day, "national insurance is probably the way to do it", he argues but he agrees that the issue of regional disparities in house prices needs to be addressed as raised earlier by colleagues.

  17. It's about protecting the wealthiest - Labourpublished at 15:31 British Summer Time 8 September 2021

    Labour MP Meg Hillier says this is "an announcement without a plan".

    The chairwoman of the public accounts committee says it includes no support for skills for care workers, a stable care market, money for local authorities or domiciliary care.

    She says: "It's about protecting the capital assets of the wealthiest."

    "The inequality really bites - wealthy pensioners on good private pensions will not pay an extra penny," she says.

    "There's a whole generation coming through, generation rent, without an asset, worrying if they can afford to pay into a pension, unable to afford today's rent and this is just hammering that generation at the expense of people like me who move through my 50s towards retirement who have an asset.... This doesn't work - there is no plan," she says.

  18. What's the alternative? asks Conservative MPpublished at 15:30 British Summer Time 8 September 2021

    Conservative Sir Edward Leigh says it is relatively easy to attack the government's plans but harder to provide an alternative.

    Many people will feel aggrieved he says that they will have to go on paying national insurance contributions after retirement age - but again, he says it is hard to come up with another option.

    So what is the alternative he asks? Does Labour have a credible plan?

    Ministers are faced with a crisis now, he says, but becoming a tax-and-spend party won't solve the problems.

    The furlough scheme, for example, is "riddled with corruption" he says.

    Why have minister ruled out private insurance he asks?

    He says he, like others, will support the government tonight "with a heavy heart".

  19. Inheritance tax is a fairer system - Labourpublished at 15:27 British Summer Time 8 September 2021

    Labour MP Clive Betts says local government has been unfairly cut compared with other parts of the public sector and he wants to know how the care plan is going to solve that problem.

    He says: "There is a crisis in social care, we all have our constituents coming to us begging for social care, really concerned about having to sell their home or being able to get into a care home or get the care at home that they need. And the reality is there simply is not a proposal in this so-called plan to give local authorities the money that's needed to both fund the existing gap and to extend social care to the many people who have been denied it with the cuts over the last few years."

    He says social care should not be paid for by the under-40s "who have been really badly hit by the pandemic and we ought to be doing our best to protect them".

    He says people shouldn't have to sell their homes to pay for social care either.

    "What we proposed instead, was a specific additional amount of inheritance tax should be levied. I think that's actually a lot fairer system where people pay according the the value of their home, not that people... where house prices are relatively low end up paying a bigger percentage of their home to fund care than people in areas with higher house prices," he says.