Jerome Mayhew

Jerome Mayhew

Conservative — Broadland and Fakenham

Speaking in the House of Commons on 25 March 2025

Debate

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Contribution

I am just flummoxed by the Government’s approach to the Bill. Clause 1 raises employer national insurance from 13.8% to 15%. Almost more damagingly, clause 2 reduces the threshold at which they start paying it from £9,100 to just £5,000. The Government know how damaging this measure is for healthcare. We can see that because they have taken action to exempt the NHS from it. That will cost billions of pounds, because healthcare providers cannot just diversify as other sections of the economy might be able to. They cannot raise prices. A general practitioner’s customer is the state, and prices are fixed by the Treasury. As a result, the Government know exactly what the impact of this proposal will be on hospices. We have already heard that without an exemption, they will face an additional £30 million of costs every year as a result of these changes. When the Bill was first announced, I assumed that there had been an oversight by the Treasury and that it would be addressed as the Bill progressed. But both last week and this week, the Lords have moved to fix what was originally considered to be perhaps an oversight. Today’s decision to seek to reverse Lords amendments 1B and 5B in particular demonstrates beyond doubt that it is not an oversight but a deliberate decision taken by Labour to penalise hospices for the care of the dying, and to do what with that money? We may be in the obscene position in a few weeks’ time of funding for state-assisted dying being raised by taxing palliative care. This is absolute madness. If Members wanted any other reason why they should not support the Government, that is an overwhelming one. I make one last reference to the emptiness of the Government Benches. There are now two Labour Members sitting there who are not required to be—[Interruption.] I take it back, there is only one. That indicates to me that Labour Members do not want to be associated with the Bill. They will scurry through the Lobby later, but they are not brave enough to stand up and defend the decision of their Government.

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