Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Ministers act to end NHS pensions row amid waiting list rise

Ministers act to end NHS pensions row amid waiting list rise

The government has come up with new proposals for England and Wales to end the row with doctors over pensions. Doctors had started refusing to do overtime shifts because they were being landed with bills after changes to the amount that can be accrued tax-free.

Just weeks after ruling out reviewing the rules, ministers now say they will.

A consultation launched by Theresa May's government offering to introduce more pension flexibility is also being replaced by more radical solutions.

The previous consultation was only published on 22 July.

But it was reassessed following the appointment as prime minister of Boris Johnson, who had promised to address the issue during the Tory leadership contest.

The pensions row has been linked to a rise in waiting times for routine surgery caused by medics refusing to work beyond their planned hours.


What is being proposed?

The government said it would now be putting forward a plan to allow doctors complete flexibility when it comes to scaling down their pension contributions to avoid breaching the annual tax-free allowance.

The allowance has been reduced from £255,000 a year in 2010-11 to £40,000 - and drops still further for the highest earners.

This tends to affect those earning more than £110,000, around a third of senior doctors and GPs

Previously the government had said it favoured a 50:50 option whereby public sector staff could forsake half the amount paid into their pension.

But now ministers have said they will publish a consultation in the coming weeks which favours giving public sector staff the ability to reduce contributions to zero.

It will also allow doctors to be given the contributions the employer would have made, meaning their pay packets could be boosted by thousands of pounds a year.

Meanwhile, the Treasury has agreed to look at how public sector workers are taxed on their pensions to see if the rules can be relaxed.

Some doctors have reported being landed with huge unexpected tax bills.

What happens next?

The plans will be set out in a consultation published during the summer with a view to introducing them from April.

But to help relieve the problems immediately, the government is also promising to allow doctors to opt out from the pension scheme for this financial year.

Again, guidance will be published in the coming weeks.

The government hopes this will relieve the pressure on hospitals, which have reported waiting lists are lengthening because doctors are refusing extra shifts.

It will be up to Scotland and Northern Ireland to decide whether to make similar changes, although the way pensions work in those parts of the UK is slightly different anyway.

Health Secretary Matt Hancock said: "NHS doctors do extraordinary life-saving work every day - 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."

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."

But Sara Gorton from the union Unison said: "Introducing measures to help only a small proportion of the millions of active NHS scheme members looks alarmingly like the beginning of a 'clinicians-first' approach to pension strategy."

Shadow health secretary Jonathan Ashworth said the pension changes had undermined the ability of the NHS to provide care to patients and ministers still need to do more to address existing staff shortages.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Hungary Ranked Among the World’s Safest Travel Destinations for 2025
G7 Leaders Fail to Reach Consensus on Key Global Issues
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Man Convicted of Fraud After Booking Over 120 Free Flights Posing as Flight Attendant
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Beata Thunberg Rebrands as Beata Ernman Amidst Sister's Activism Controversy
Hungarian Parliament Approves Citizenship Suspension Law
Prime Minister Orbán Criticizes EU's Ukraine Accession Plans
Hungarian Delicacies Introduced to Japanese Market
Hungary's Industrial Output Rises Amid Battery Sector Slump
President Sulyok Celebrates 15 Years of Hungarian Unity Efforts
Hungary's Szeleczki Shines at World Judo Championships
Visegrád Construction Trends Diverge as Hungary Lags
Hungary Hosts National Quantum Technology Workshop
Hungarian Animation Featured at Annecy Festival
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
UK and EU Reach New Economic Agreement
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
UK and EU Reach Agreement on Gibraltar's Schengen Integration
Israeli Finance Minister Imposes Banking Penalties on Palestinians
U.S. Inflation Rises to 2.4% in May Amid Trade Tensions
Trump's Policies Prompt Decline in Chinese Student Enrollment in U.S.
Global Oceans Near Record Temperatures as CO₂ Levels Climb
Trump Announces U.S.-China Trade Deal Covering Rare Earths
Smuggled U.S. Fuel Funds Mexican Cartels Amid Crackdown
Austrian School Shooting Leaves Nine Dead in Graz
Bezos's Lavish Venice Wedding Sparks Local Protests
Europe Prepares for Historic Lunar Rover Landing
Italian Parents Seek Therapy Amid Lengthy School Holidays
British Fishing Vessel Seized by France Fined €30,000
Dutch Government Collapses Amid Migration Policy Dispute
UK Commits to 3.5% GDP Defence Spending Under NATO Pressure
Germany Moves to Expedite Migrant Deportations
US Urges UK to Raise Defence Spending to 5% of GDP
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
Low Turnout Jeopardizes Italy's Citizenship Reform Referendum
Transatlantic Interest Rate Divergence Widens as Trump Pressures Powell
EU Lawmaker Calls for Broader Exemptions in Supply Chain Legislation
France's Defense Spending Plans Threatened by High National Debt
European Small-Cap Stocks Outperform U.S. Rivals Amid Growth Revival
Switzerland Proposes $26 Billion Capital Increase for UBS
×