NHS risks “going into reverse” with National Insurance hike on GPs – Carmichael

Orkney and Shetland MP, Alistair Carmichael, has today warned that the NHS risks “going into reverse” if the National Insurance Contribution increase is not offset for GPs and other care providers. Speaking during an Urgent Question in Parliament, Mr Carmichael cited discussions with GPs in the isles who are reducing recruitment as a reduce of the tax increase. The government has provided the NHS as a whole an increase in funding to cover the increased tax, but this does not apply to GPs, which are considered to be private operators despite working for the public sector.

Speaking in the House, Mr Carmichael said:

“I hear the minister when she says that the government wants to stop the NHS going into reverse, but I have to tell her that’s exactly what risks happening to GP practices in my constituency. I met with one on Friday who told me that as a consequence of having to find extra National Insurance Contributions, they won’t now be able to make a support post permanent, which was on a temporary contract, and they won’t proceed with the recruitment of the extra GP that they were wanting to take on. 

“There is a contradiction at the heart of the rules here. They are treated as private contractors, but if they were private contractors they would be eligible for employment allowance. Because their work is entirely in the public sector they can’t get that. Surely something has got to give?”

Responding for the government, Minister of State for Health Karin Smyth MP said:

“They do have a complicated contractual status that has been long in the process; we absolutely understand the precariousness of primary care, they are crucial to our plans for developing the health service, and we will be discussing with them in the normal process about the allocations for the following year.”

Reacting after the exchange, Mr Carmichael said:

“Process is one thing but GPs and other care providers are making cutbacks now because of the uncertainty they face. That will inevitably have an effect on the health services on which we all rely. 

“The government must give more clarity on their plans as soon as possible – and confirm that they will offset the increased NICs cost for GPs and care homes.”