Opposition factions have pressed the Prime Minister to shield hospices and various health service providers from the impending National Insurance hike.
While the NHS and other public sector entities will dodge the April tax augmentation, private hospices, care homes, and pharmacies remain unprotected.
Both Kemi Badenoch, the Conservative leader, and Sir Ed Davey, leader of the Liberal Democrats, have implored the government to endorse an exemption during a forthcoming parliamentary vote.
Conversely, Sir Keir Starmer argued that these organisations have already benefitted from additional funding, and the tax increment is essential for further investment in the NHS.
During the heated debate at Prime Minister’s Questions, Badenoch championed a proposal to relieve hospices, pharmacies, and care providers from the National Insurance surge.
In response, Sir Keir criticised the Conservatives for desiring the fiscal benefits without accounting for their funding.
Adding to the discussion, Sir Keir highlighted the government’s previous investment in hospices, including £100 million for adult and children’s facilities and an extra £26 million through the children’s hospices grant.
Sir Ed queried the Prime Minister about the potential opposition from Labour MPs to a Liberal Democrat motion that seeks to exempt NHS service providers from the tax rise. He expressed concerns shared by GPs, dentists, community pharmacists, and care homes about the financial impact of the increase.
Sir Keir credited the fiscal changes announced in the previous October’s Budget with enabling substantial investments in the NHS, arguing it is counterproductive to oppose these necessary financial measures while also reaping their benefits.
From April, the rate of National Insurance contributions for employers is set to increase from 13.8% to 15%.
Hospices, vital in end-of-life care and predominantly charity-funded, receive merely a third of their budget from government sources.
Despite a December announcement that hospices in England would receive an excess of £100 million, the bulk of this funding is earmarked for infrastructure rather than operational costs.
Care homes have voiced concerns that the additional government funding fails to compensate for the tax rise, potentially leading to closures.
Earlier in the week, the National Pharmacy Association called on its members to reduce service hours in protest of insufficient funding, with the National Insurance hike being a significant strain.
