New proposals to end row with doctors over pensions

With increasing numbers of doctors refusing to work overtime because they were being landed with bills, the government has said it wants to change pension rules for top doctors, surgeons and other high-earning clinicians.

The Department of Health and Social Care will shortly open a new consultation asking people what they think about the set of proposals, which includes giving senior clinicians full flexibility over the amount they put into their pension pots, meaning doctors can take on extra shifts and treat more patients without losing out financially.

This replaces the 50:50 proposal put forward for consultation in July, which has been dubbed a ’tax trap’. The fiasco, caused by rule changes in 2016, has been blamed for a recent increase in patient waiting times and led to cancer scans going unread for as long as six weeks.

Starting from next financial year, the new rules would allow senior clinicians to set the exact level of pension accrual at the start of each year. For example 30 per cent contributions for a 30 per cent accrual rate, or any other percentage in 10 per cent increments depending on their financial situation.

Sajid Javid, Chancellor of the Exchequer, said: “This government is committed to ensuring that British people see a real difference in public services, including getting quicker GP appointments and a reduction in waiting times. Critical to that is introducing flexibility into the system so that our hospitals have the staff they need to deliver high-quality patient care, which is why we’ve listened to concerns and will be reviewing the operation of the tapered annual allowance. This will help to support the delivery of our vital public services.”

Health and Social Care Secretary, Matt Hancock, added: “NHS doctors do extraordinary, life-saving work every day, and they should not have to worry about the tax impacts if they choose to go the extra mile by taking on additional work to help patients. These comprehensive proposals will give doctors the pension flexibilities they have called for and need to make sure they are rewarded for extra work. We are taking immediate action and I hope these flexibilities will encourage our top NHS staff to fulfil the dedication of their mission: to care for their fellow citizens in time of need.”

Dr Chaand Nagpaul, of the British Medical Association, said: "We acknowledge this step forward by the government. After tireless lobbying on the damaging effect that perverse and ill-thought out tax legislation is having on our NHS, its doctors and patients, it is good to see the government finally sitting up and taking notice and proposing action."