Scotland seeks solution to pensions crisis

Scottish Health Secretary Jeane Freeman has again urged the UK government to find a permanent solution to the pension taxation issue impacting vital NHS services.

In a letter written to Chancellor Sajid Javid, Freeman urged for decisive action to ensure pension and taxation rules no longer undermine delivery of frontline health services for the people of Scotland and other UK nations.

As a result of UK Government pension taxation rules, highly experienced staff can face unexpected additional tax liabilities, contributing to some staff having to reduce their hours or retire earlier than expected. 

In response, the Scottish Government introduced a temporary opt-in policy for all affected NHS staff in November 2019 to ensure crucial services are maintained as demand on the health service continues to increase. The ban gives eligible NHS staff the option to get their employer pension contributions paid to them as part of their basic pay, providing staff with an alternative option to restricting their hours in order to reduce financial penalties.

However, this interim measure is due to come to an end on 31 March 2020 with the end of the current financial year, and Freeman stresses that a permanent solution must be found by the UK government.