Boris Johnson defends National Insurance levy in Parliament

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The Lib Dems will vote against plans to raise National Insurance by 1.25 percent to fund health and social care – a day after the Prime Minister announced the manifesto-breaking policy. The proposed health and social care levy will raise an estimated £12billion each year, with the vast majority dedicated to the NHS to manage the backlog following the pandemic. Only £5.4billion of the £36billion raised in the first three years of the programme will be allocated to social care.

The move has drawn criticism across the political spectrum and stirred bitter tensions within the Tory party as the National Insurance increase goes directly against their 2019 manifesto promise not to raise taxes.

However, the Prime Minister said his new proposal would put an end to the “cruel lottery” of who will or will not face financial ruin to meet their care costs.

As part of the sweeping social care reforms, a cap of £86,000 will be put on lifetime care costs from October 2023 which will protect people from the “catastrophic fear of losing everything”, according to Mr Johnson.

But former Conservative leader Sir Iain Duncan Smith branded the plan a “sham” which would not work because it did not reform the social care system itself.

Munira Wilson, Liberal Democrat heath and social care spokesperson, said: “This broken promise from the Conservatives will hit the nation’s working families hard.

“Boris Johnson gave voters a cast iron guarantee that he would not raise National Insurance – now he’s gone back on his word.

“This is a betrayal of the nation’s trust, and especially a betrayal of the nation’s low paid workers, small businesses, and of carers and people who need care.”

The social care plan has come under fire because National Insurance is not paid by the retired and disproportionately affects the poor.

Defending the tax hike, Chancellor Rishi Sunak said: “This is one of the most consequential decisions a government has made on a matter of public policy in my lifetime; a decision that governments of all political colours have said they would make, but ultimately ducked.

“But we can’t spend money we don’t have, and this will come at a cost.

“There will be some who will say that we should borrow, and hope that in the end it will all come good but no responsible government would ever plan on that basis.

“We must make difficult decisions.”

Labour leader Keir Starmer said a National Insurance rise would “hit working people hard, including low earners and young people” and disproportionately impact businesses that had been damaged by the pandemic.

Jake Berry, leader of the Northern Research Group of Tory MPs, also warned against the policy which appears to be aimed at elderly voters in affluent southern seats and puts the Government’s levelling up agenda at risk.

Ms Wilson added: “We want to see this Government fix the staffing crisis, recognise our unpaid carers, fill the local authority funding black hole and address care for working adults.

“Finally we want the Conservatives to find a fair and sustainable way to fund this that doesn’t hit small businesses and low earners hard in the pockets.

“People deserve a Government they can trust, and that’s clearly not a Conservative one which is why voters across the Blue Wall are turning to the Liberal Democrats instead.”

Lib Dem leader Ed Davey, who is a carer himself, described the Government’s new health and social care levy as an “unfair tax” and asked the Prime Minister to change the law to help carers balance employment with their duties at home.

The Lib Dems have challenged the Government to work cross-party to find a solution.

They say that, to fix the broken social care system, any meaningful policy must meet five key tests.

First, fixing the staffing crisis in social care, including better pay, recognition and support for care staff, with a clear roadmap for social care staff to have parity in pay and conditions with NHS equivalent staff.

Second, giving unpaid carers the recognition and practical support they deserve, including higher Carers’ Allowance, guaranteed breaks and a new legal status as part of the reforms.

Third, filling the black hole in local authority social care funding, so councils can properly assess and meet people’s care needs, provide carers’ needs assessments, invest in prevention and improve the quality of care for people.

Fourth, addressing the growing need for care among working-age adults with a disability or long-term illness.

And, finally, raising funding for social care in a fair and sustainable way – not through a National Insurance hike that hits low-earners, the young and small businesses.

Any proposed policy short of these demands is not fit for purpose, according to the Lib Dems.

Despite the criticism, Mr Johnson is expected to successfully pass the policy in the upcoming vote today.

Tom Harwood, political correspondent for GB News, said he had spoken to a host of Conservative MPs who had all expressed their displeasure about being put in this position.

Government whips have told MPs they consider today’s decision a confidence vote in the Prime Minister’s administration and a letter questioning the plans has reportedly only secured 10 signatures so far.

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