VAT slapped in personal health care

Monday 04 August 2025 9:53
| Updated:

Monday 04 August 2025 9:54

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Lord Lord Kinnock has asked the government to start collecting VAT in private health insurance to raise funds for NHS.

Speaking to Paper I, the former worker leader had urged Rachel Reeves to be included in the changes in VAT which was similar to the autumn budget for the private medical market as applied to private schools.

Kinnock suggested that removing the release of VAT in private health care would provide “vital funds” for public services and “widely supported” by the public.

This paper quotes the analysis which shows that if the tax structure is changed, it will collect more than £ 2 billion for the Ministry of Finance.

‘Not equivalent to treatment’

“After 14 years of lack of investment, many people switch to private health care do not come out of the choice, but because they are unable to wait. This increasingly causes uneven access to treatment,” said Lord Kinnock.

The surge in requests for private health insurance policies has been well documented, with the latest numbers from Phin revealed that in Q3 in 2024, the reception of private hospitals reached the highest level in the third quarter of any year.

This came because the waiting list for hospital treatment planned at NHS had deposits, in May, which were in more than seven million cases.

To reduce the waiting time, Wes Streeting Health Secretary has been vocal about utilizing the private health sector to reduce pressure on the NHS waiting list.

Back in January, Reeves announced in his review of the £ 29 billion funding package to increase NHS, which included up to £ 10 billion for digital technology and transformation, as well as GP training.

However, last week, the NHS and the government wrestled with a doctor’s strike.

Lord Kinnock’s nickname came behind the exception of VAT that was revoked by Reeves in a private school in his first autumn budget, a step that produced legal action and many school closure.