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VAT on private health

257 replies

Simonandrod · 12/06/2024 22:05

Am I right in thinking there isn't VAT on private health care? Is it completely unfeasible that it could be put on and money raised go to NHS? Or is it too complicated as so many people who use it have health insurance? Just interested

OP posts:
TempestTost · 12/06/2024 23:28

Firawla · 12/06/2024 22:12

No that makes no sense since people using private are already helping the NHS by taking the strain off

It's basically the same argument as taxing privately provided education. So we shouldn't be surprised to see that people are now making that argument, this is the stated policy of the party of the people.

Generally taxing health care and education aren't things civilized countries do, but go UK I guess.

newmummycwharf1 · 12/06/2024 23:27

BoatAcrossTheBay · 12/06/2024 23:09

Using private healthcare is in reach of more people than private education. Lots of people have medical insurance through work and even more have paid for one off or a series of appointments for a particular health issue. So therefore they tell themselves it’s different and it’s ok. No it’s not different because it’s ‘lifesaving’, it’s often not.

I think if private schooling was in their reach, many of these people would use that to, and probably not be in favour of paying more for it. But whilst it remains out of their reach, this policy will remain a vote winner for Starmer because of people’s spite.

My kids were/are at state school, but I don’t agree with the VAT on private schools because I don’t think it’ll benefit anyone and has the strong potential to make things worse.

Well private schools need to think about that. The fees have risen far far above inflation pushing it out of the reach of so many and then you have a small sliver of the population in the support. They have themselves to blame. It wasn't always so

north51 · 12/06/2024 23:26

BoatAcrossTheBay · 12/06/2024 23:09

Using private healthcare is in reach of more people than private education. Lots of people have medical insurance through work and even more have paid for one off or a series of appointments for a particular health issue. So therefore they tell themselves it’s different and it’s ok. No it’s not different because it’s ‘lifesaving’, it’s often not.

I think if private schooling was in their reach, many of these people would use that to, and probably not be in favour of paying more for it. But whilst it remains out of their reach, this policy will remain a vote winner for Starmer because of people’s spite.

My kids were/are at state school, but I don’t agree with the VAT on private schools because I don’t think it’ll benefit anyone and has the strong potential to make things worse.

You make some interesting points. VAT on school fees is popular because most people won’t be paying it. VAT on private medicine seems less popular (at least on this thread) because more people would have to pay it. If Labour were proposing to add VAT on all private education ie schools, tutoring, holiday courses, universities - all of which people pay for for their own children, to benefit/advance their own children, but are not affordable to everyone - I very much doubt it would be so popular. It seems people are in favour of extra taxes on other people. And if someone can afford something that I can’t, it’s because they’re “rich” and therefore it’s only fair that they should pay more tax etc etc (I think it was Dan Neidle, tax expert, who shared some research on taxes which showed a majority said they were prepared to pay more tax, but when asked how much more, most people said £25 or less per year!!!)

The harsh fact is that we all need to pay a lot more tax because all the public services - NHS, schools, roads, you name it - need more money. But none of our politicians are addressing this. Whoever is in power after the election is going to have to massively put up taxes.

newmummycwharf1 · 12/06/2024 23:25

north51 · 12/06/2024 23:04

I believe it’s actually part of the complex negotiations that were made with the medical profession when the NHS was founded. Consultants were “allowed” to still do lucrative private work alongside their work in the NHS. If the govt of the day hadn’t allowed this, the NHS wouldn’t have had enough staff. The Drs union (BMA?) is very very powerful and vocal. I doubt very much that the govt could force NHS consultants to work exclusively for the NHS. (I don’t think you can force anyone to work in a particular place - if all private schools closed tomorrow, many of the teachers would not move across into the state sector, that’s a fantasy. If they wanted to work in the state sector they would do already. Similarly with consultants.)

You just have to look at how Keir Starmer has backed off reimposing the cap on pension funds - Jeremy Hunt lifted this for all workers, but it was specifically to address the problem that NHS consultants were retiring early/refusing extra shifts, because otherwise they got a heavy pension penalty. Labour would have faced exactly the same problem if they reimposed the cap and Drs had been quite vocal about this. Starmer thgt he cld carve out a special tax deal just for higher paid NHS staff and public sector workers but has clearly discovered that that’s not workable.

I’ve gone down a bit of a side issue, but my main point is that I don’t think VAT on private health care as a 1st step to abolishing private health care will find any support in the medical profession and it would be a brave politician who took that on. Yes, the arguments you can make are the same as for VAT on private school fees - so if you are for/against one you should, logically, be for/against the other - but a lot of powerful people in the NHS also want a thriving private sector.

This - in a nutshell

BoatAcrossTheBay · 12/06/2024 23:09

Using private healthcare is in reach of more people than private education. Lots of people have medical insurance through work and even more have paid for one off or a series of appointments for a particular health issue. So therefore they tell themselves it’s different and it’s ok. No it’s not different because it’s ‘lifesaving’, it’s often not.

I think if private schooling was in their reach, many of these people would use that to, and probably not be in favour of paying more for it. But whilst it remains out of their reach, this policy will remain a vote winner for Starmer because of people’s spite.

My kids were/are at state school, but I don’t agree with the VAT on private schools because I don’t think it’ll benefit anyone and has the strong potential to make things worse.

north51 · 12/06/2024 23:04

I believe it’s actually part of the complex negotiations that were made with the medical profession when the NHS was founded. Consultants were “allowed” to still do lucrative private work alongside their work in the NHS. If the govt of the day hadn’t allowed this, the NHS wouldn’t have had enough staff. The Drs union (BMA?) is very very powerful and vocal. I doubt very much that the govt could force NHS consultants to work exclusively for the NHS. (I don’t think you can force anyone to work in a particular place - if all private schools closed tomorrow, many of the teachers would not move across into the state sector, that’s a fantasy. If they wanted to work in the state sector they would do already. Similarly with consultants.)

You just have to look at how Keir Starmer has backed off reimposing the cap on pension funds - Jeremy Hunt lifted this for all workers, but it was specifically to address the problem that NHS consultants were retiring early/refusing extra shifts, because otherwise they got a heavy pension penalty. Labour would have faced exactly the same problem if they reimposed the cap and Drs had been quite vocal about this. Starmer thgt he cld carve out a special tax deal just for higher paid NHS staff and public sector workers but has clearly discovered that that’s not workable.

I’ve gone down a bit of a side issue, but my main point is that I don’t think VAT on private health care as a 1st step to abolishing private health care will find any support in the medical profession and it would be a brave politician who took that on. Yes, the arguments you can make are the same as for VAT on private school fees - so if you are for/against one you should, logically, be for/against the other - but a lot of powerful people in the NHS also want a thriving private sector.

newmummycwharf1 · 12/06/2024 22:58

Simonandrod · 12/06/2024 22:49

I'm so sorry your daughter was ill and I'm very pleased for you that you could take action.
But say another parent's daughter was ill and didn't have the ability to remortgage.
I think there are parallels
Both are only for the privileged and bestow a huge advantage.
I just don't understand why Starmer hasn't slapped VAT on both or neither

The current waitlist is so huge, I am not convinced those using private healthcare decanting to the NHS would make that much of a difference. They should have at it. The system needs deep reform and the current solutions being put forward is more of the same. No new ideas

I suspect it is because - even with more money everyone knows more people need to pay more individually to use the NHS to manage demand. It needs to happen - it is just a matter of when and how.
VAT on private healthcare may actually be a good way to start the conversation of paying towards healthcare like in the Australian model

minipie · 12/06/2024 22:56

stressedespresso · 12/06/2024 22:39

This. As someone who has utilised both private healthcare and private schooling for her DD only one of these was a choice. We were literally forced into remortgaging our home to pay for £45k of private surgery.

What about the family whose child needs the same operation but don’t have a property to remortgage? They might think your private healthcare is a luxury and ought to be taxed? So that the money can go to the NHS?

Simonandrod · 12/06/2024 22:49

stressedespresso · 12/06/2024 22:39

This. As someone who has utilised both private healthcare and private schooling for her DD only one of these was a choice. We were literally forced into remortgaging our home to pay for £45k of private surgery.

I'm so sorry your daughter was ill and I'm very pleased for you that you could take action.
But say another parent's daughter was ill and didn't have the ability to remortgage.
I think there are parallels
Both are only for the privileged and bestow a huge advantage.
I just don't understand why Starmer hasn't slapped VAT on both or neither

OP posts:
GreenPeasandMint · 12/06/2024 22:47

I can see private healthcare being next in the firing line for VAT.

So many people need to use means it would bring in a good amount and could mean they could use the money to pay for the longest waiting lists for the poorest people to be cleared using the same system. Quite neat and equitable really.

FTPM1980 · 12/06/2024 22:41

Simonandrod · 12/06/2024 22:20

Plenty of people would like to be able to rely on state education.
I simply don't see the difference

I don't think it's the same at all.
Moat people in private education could get a place at a state school. They have a choice and they perceive private school to be higher quality but they would not be missing education otherwise
.
Completely different to someone being told there is a 2yr waiting list for this operation by Mr consultant X....or you can pay and still have your operation by Mr consultant X, but in 2 weeks.

Neither is right in my opinion but they are differentin terms of reliance and desperation. And I would be fine with VAT on private health care...but would prefer a level playing field for all with no private provision.
I would guess VAT would hit insurance providers and most insurance is provided by employers.

stressedespresso · 12/06/2024 22:39

Leah5678 · 12/06/2024 22:21

It's quite literally the difference between life and death. Can't really compare health care to schooling. I think this is just another thread looking for a reason to moan about vat on private school tbh

This. As someone who has utilised both private healthcare and private schooling for her DD only one of these was a choice. We were literally forced into remortgaging our home to pay for £45k of private surgery.

ll09sm · 12/06/2024 22:38

Starmer saying that he would never use private healthcare just shows what a disingenuous fraud he is.

A much more credible thing to say would have, yes I would use it to help me and my family because no one should ever put their family through unnecessary suffering if you can afford it. But I would do X, Y, Z for those who don’t have a choice.

This guy is going to be a disaster for chi’s country. If indeed it is possible to be worse than the incumbents.

minipie · 12/06/2024 22:38

stressedespresso · 12/06/2024 22:25

You don’t see a difference in my child being forced to wait in pain with 0 quality of life on the NHS for 2 years and people paying for their children to go to a posher school?

There is a big difference

It is FAR more unfair that some people can pay to end their child’s pain quicker, and some can’t

than that some people can pay to send their child to private school, and some can’t

if you want to attack inequality, surely you’d go after private healthcare first

newmummycwharf1 · 12/06/2024 22:36

crumblingschools · 12/06/2024 22:33

Aren’t Labour planning to use private healthcare to sort out waiting lists?

Already happening and they plan to turbo charge this. This will only undermine local hospitals as is already happening in some areas but good for us private medics as there is more money to be made. It is totally the wrong policy and both parties don't get it

HollyFern1110 · 12/06/2024 22:36

I work in the NHS & have done for years. I really hope that private healthcare doesn't become more expensive than it already is. It's not really comparable with schooling, there are lots of low income people paying for private healthcare now as the 2 year waiting lists for certain NHS appointments is just too much. The wait for an URGENT Cardiology appointment at my local hospital is 12 months plus.

Plenty of people might not like the state school offered but they will at least be offered a place. With health it is more pay for an appointment or have no appointment.

Another76543 · 12/06/2024 22:36

crumblingschools · 12/06/2024 22:33

Aren’t Labour planning to use private healthcare to sort out waiting lists?

Yes, Starmer disagrees with private healthcare and wouldn’t use it, but he’s relying on it to clear the NHS backlog……

newmummycwharf1 · 12/06/2024 22:35

Leah5678 · 12/06/2024 22:21

It's quite literally the difference between life and death. Can't really compare health care to schooling. I think this is just another thread looking for a reason to moan about vat on private school tbh

For many who use private healthcare - it is not life and death. The most frequently used private services are cataract surgery, orthopaedic procedures, hernias and surveillance procedures like colonoscopies. Life and death stuff is still mostly NHS (and I would say remains best there).

People should get a tax break for going private and frankly people should pay a fee for missing appointments without solid reason. The NHS needs to get its act together and needs more funding but the public also need to be far more responsible with their health and NHS use

crumblingschools · 12/06/2024 22:33

Aren’t Labour planning to use private healthcare to sort out waiting lists?

Simonandrod · 12/06/2024 22:33

Leah5678 · 12/06/2024 22:27

Exactly this 💯
Honestly the comparison is ridiculous

It's the principle.
People get sp riled about private education and the advantages you get.
I just don't understand why they don't get as angry about the privilege of being able to pay to jump health care queues
I'm v pleased that you can afford it for your child and I'm so sorry they're ill with no quality of life.

OP posts:
newmummycwharf1 · 12/06/2024 22:30

Pin0cchio · 12/06/2024 22:19

I wouldn't have an issue with this.

I have private health. We need more money for the NHS, this seems like a reasonable place to go for it.

One of the biggest staffing issues in the nhs is people training in it (at huge taxpayer expense) then swapping to working quite limited hours as nhs consultants and higher hours on private sector work. I'd love to see something that targeted this. Like a training cost recovery fee that applies if you substantially reduce your nhs hours (with exemptions for maternity leave or ill health etc).

Then you would have an even worse staffing retention issue in the NHS

Leah5678 · 12/06/2024 22:27

stressedespresso · 12/06/2024 22:25

You don’t see a difference in my child being forced to wait in pain with 0 quality of life on the NHS for 2 years and people paying for their children to go to a posher school?

Exactly this 💯
Honestly the comparison is ridiculous

Leah5678 · 12/06/2024 22:26

Simonandrod · 12/06/2024 22:23

Not remotely the same. People use private health care for many mamy reasons. Not just saving their lives

People use healthcare to get out of chronic pain, get better, save their children's lives etc.
However you wont die if your child goes to a normal school like 93% of the population.
I think it's ridiculous to compare schools with healthcare

DistinguishedSocialCommentator · 12/06/2024 22:26

AlpineMuesli · 12/06/2024 22:09

There’s no VAT on private operations. Which is weird when you think how rich people can queue jump and ordinary people have to wait and subsidise the process through tax…

LOL -really, "rich people" use private HC??

I've met many clients that were living in rented places, worked in retail ie low wages use private HC as they were desprate

Iff you have a decent job, at times private HC is part of your works papackage

HowdieSailor · 12/06/2024 22:25

Pin0cchio · 12/06/2024 22:23

*I pay for private medical insurance for specific things as part of my job. It is ludicrously expensive - about £350 a month. If they added 20%, that would be an extra £70 a month, which I cannot afford so I would cancel it, and revert to the NHS instead.

No extra money for the govt but an extra person queuing for a GP appt.*

It would help because if it happened at large scale, there'd be a huge drop in demand for private services.

The doctors providing private services would likely return to a higher proportion of NHS work, helping with the staffing shortages. They typically see more patients in less time for NHS than private so the same number of doctors goes further in the NHS than doing private work.

Or they'd move abroad?

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