GPs facing national insurance hikes have been told to “hold tight for funding allocations” by Health Secretary Wes Streeting.
Calls have been made for GPs, dentists, hospices, care homes and pharmacies to be exempt from the increase to employers’ national insurance contributions (NIC), which was announced in the Chancellor’s Budget last month.
In the Commons, shadow minister Dr Luke Evans said that GPs view the rise as a “Schrodinger” tax, because they are considered private employees but are exempt from small business relief due to being categorised as public.
Mr Streeting said the Government is considering all pressures that are facing GPs and funding allocations will be announced “long before April next year”.
I would say to GPs who are thinking about staffing for the next financial year, hold and wait for funding allocations shortly, so that they can make informed decisions about staffing and care for patients
Speaking from the frontbench on Tuesday, Dr Evans said: “The Royal College of GPs has said the national insurance tax increase is expected to cost 2.2 million appointments.
“We know from written questions submitted that GPs, hospices, care homes, are not exempt and won’t find out until April, i.e. six months’ time, what – if any – mitigation will be put in place and cutbacks are being planned now.
“So, could the Secretary of State explain how his choice to tax GPs will increase GP access?”
Mr Streeting said: “Firstly, can I just reassure health and care providers that we will be setting out allocations long before April next year.
“I recognise that people need to plan ahead of the new financial year and of course when deciding allocations, we take into account the range of pressures on different parts of the system and people have heard what I’ve said already about the need to shift out of hospital into primary and community services.
“What I would say to the party opposite: he talks about choices, they seem to welcome the £26 billion investment but oppose the means of raising it. I’m afraid they can’t do both.”
Dr Evans, a former GP, then said: “One GP described it to me as Schrodinger’s primary care, i.e. GPs are seen as private contractors so not exempt from the NI, but they are exempt from the small business relief because they are deemed as public.
“Isn’t the simple fact here, the health team knowingly went along with the Treasury team’s plan to tax primary care without mitigations, leading to cuts?
“Or the health team didn’t understand or spot the complexity of what’s going on, and therefore having to put mitigations in. Now, which is it?”
Mr Streeting replied: “They seem to welcome the investment, the £26 billion, they’re happy to tell us how it should be spent, but they oppose the means of raising it.
“They can’t do both. They need to be honest with the country, either they’re supporting the investment in the NHS or they’re saying they would cut the investment. Which is it?”
During health questions, Conservative MP Lincoln Jopp (Spelthorne) said: “I recently met a GP who was in the market to hire a new seven to eight session GP, to meet demand.
“Following the Budget and the increase in the national insurance contribution for employers, he can now only afford a three to four session GP, what advice does the Secretary of State have for my friend the GP?”
Mr Streeting replied: “I would say to GPs who are thinking about staffing for the next financial year, hold and wait for funding allocations shortly, so that they can make informed decisions about staffing and care for patients.”
Liberal Democrat MP Sarah Olney said Fairhill Medical Practice in her constituency of Richmond Park is facing an extra £50,000 bill as a result of the increase.
She added: “Can the Secretary of State tell me whether GPs can expect to see across the board a cut in NICs paid for by GPs, to help them manage to continue to deliver services for families in the area?”
Mr Streeting said: “We’ve not yet announced allocations for general practice for the year ahead, of course we’re taking into account all of the pressures that general practice is under.”
