Opposition parties are putting pressure on the prime minister to exclude hospices and other healthcare providers from the National Insurance contribution increase. While the NHS and the wider public sector are set to be protected from the tax hike starting in April, private hospices, care homes, and pharmacies are not covered by this exemption.
Both Conservative leader Kemi Badenoch and Liberal Democrat leader Sir Ed Davey have called on the government to support an exemption for these organizations in a vote in the House of Commons. However, Labour MPs voted against the proposal, arguing that hospices and other entities have already received additional financial support and that the tax increase is necessary to bolster investment in the NHS.
During Prime Minister’s Questions, Badenoch stated that her party would back a move to spare hospices, pharmacies, and care providers from the National Insurance hike. In response, Sir Keir mentioned that the Conservatives want the benefits of the tax rise without outlining how they plan to cover the costs. He highlighted the government’s previous investments in hospices, including £100m for adult and children’s hospices, and an additional £26m in funding through the children’s hospice grant.
In a vote that took place after PMQs, MPs rejected a proposal to exempt GPs, hospices, care homes, pharmacies, and dentists from the National Insurance increase by a margin of 307 to 182. The rise in national insurance contributions for employers is set to go up from 13.8% to 15% in April, with hospices relying on charity contributions for two-thirds of their funding. Hospices in England were recently granted over £100m in additional funding, although most of this is designated for capital projects rather than day-to-day operations. Care homes have expressed concerns that the extra funding provided by the government will not be enough to cover the tax increase, potentially leading to closures. Additionally, the National Pharmacy Association has advised its members to reduce operating hours and services in protest against funding issues, with the National Insurance hike being one of the challenges faced by the sector
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