Red Wall MPs accused Sajid Javid’s of imposition an ‘inheritancetax on the North’ via social care reforms in a game that erupted at Whitehall.
A Conservative MP accused Health Secretary of “playing Chancellor” by proposing an amendment which will make lower-earning people worse off.
Red Wall MPs are ‘on a warpath’ after Ministers announced the change to the new £86,000 cap on costs, which Boris Johnson unveiled in September.
It means state-funded care costs will not go towards the £86,000 cap, and only private contributions will be counted.
It has been called unfair, as it makes lower-earning people harder to work for. This burden is expected to be greatest in the North.
Red Wall MPs accuse Sajid Javid, a Whitehall blame-gamer, of imposing an “inheritance Tax on the North” through social care reforms.
Last week, Sir Andrew Dilnot, the architect of the original cap, said the amendment means pensioners with assets of £106,000 or less would lose out, while it will not make a difference to those with assets of more than £186,000.
He explained that this means those living in North areas or near lower property prices will be the most affected.
Red Wall MP: “It’s an inherit tax on the North.”
Treasury sources have privately told MPs that Mr Javid is responsible for the amendment, which is expected to save his budget £900 million a year.
The Treasury claimed it provided the requested information to the Health Secretary’s Department.
A Conservative MP stated that Mr. Javid wanted the savings for health care. “He is playing Chancellor,” the MP explained. He wants the money to be used for another purpose.
But sources close to Health Secretary said that these claims were not true and the Treasury is responsible.
Social care reforms will get funded through a National Insurance increase, which then becomes a separate Health and Social Care Levy.
One Red Wall MP said: ‘That’s the reason the Northern MPs are getting so upset – they largely swallowed the tax rise, but if it’s not going to benefit their constituents, which is the implication, then they will be pretty p***ed off.’
The Department of Health and Social Care, (DHSC), attempted to soothe Tory backbenchers on Friday by issuing an analysis paper’ giving additional details about the controversial policy shift.
Gillian Keegan, Care Minister and DHSC officers held a Zoom Call for concerned MPs
It revealed that the proposed change is expected to save about £900 million a year.
Gillian Keegan (Care Minister) and DHSC officers held a Zoom Call for concerned MPs. The Mail on Sunday learns that one Conservative leader slammed the absence of technical data to back up the plans.
Sources claimed that the MP said it wasn’t good enough to vote tomorrow in the Commons on this basis.
Separately, Red Wall Tory MPs privately stated to this newspaper that the policy shift was ‘perverse’. Another said, in reference to the National Insurance tax increase: “You expect us to pay it, and we are not going to get any benefit.”
Treasury sources also hit back at any suggestions that Mr Javid’s department had been forced by Rishi Sunak to make the £900 million saving.
One person said, “At what point does Treasury cease to be responsible for such a thing?”