Party manifestos offer 'too little too late' on NHS pension tax crisis

Political parties are offering 'too little too late' in their manifestos over the pension tax crisis that has forced thousands of doctors to cut back their working hours, a senior BMA pensions expert has warned.

Pension tax warning (Photo: Andrew Brookes/Getty Images)
Pension tax warning (Photo: Andrew Brookes/Getty Images)

The BMA has called proposals from the Conservatives, Labour and the Liberal Democrats 'disappointing' - warning that none of the three parties' manifestos contain 'detailed plans for reforming the disastrous pension taxation system that is currently preventing many doctors from working additional hours'.

GPonline has reported that in parts of England, nearly every GP has either reduced their working hours or plans to do so. A dossier compiled by the Academy of Medical Royal Colleges (AoMRC) earlier this year showed that some NHS services had been forced to close because pension tax concerns had left them unable to find enough doctors to keep their doors open.

BMA national clinical adviser on pay and pensions, consultant radiologist Dr Tony Goldstone, said on Twitter this week that there was currently 'no greater threat to the NHS' than the pension tax crisis.

Pension tax review

A comparison by the BMA of the three main parties pledges shows that the Conservatives have promised an 'urgent review' of the problem within 30 days if elected, to be carried out in consultation with the BMA and AoMRC.

Labour has also committed to a review to ensure that the workforce is fairly rewarded and that NHS services are not undermined, while the Liberal Democrats have promised to 'listen and act'.

A BMA statement on the parties promises said: 'A commitment to "review" is not new and not what is needed – we need urgent action from whoever forms the new government to scrap the damaging annual allowance and tapered annual allowance in defined benefit pension schemes to ensure that no doctor is penalised for going above and beyond for their patients.'

Scrap the taper

Dr Goldstone said that 'the time for "reviews" and "listening" passed a long time ago' - emphasising the BMA call for the punitive pension tax measures to be scrapped immediately.

Under a short-term fix unveiled last month, NHS England offered doctors in the NHS pension scheme facing charges due to breaching their annual pension allowance for 2019/20 a 'contractually binding' deal that would allow them to pay off the tax bills through the 'scheme pays' mechanism - on the basis that the NHS would 'pay them a corresponding amount on retirement, ensuring that they are fully compensated in retirement for the effect of the 2019/20 scheme pays deduction'.

The BMA has called for cast-iron guarantees over the offer, and accountants have warned that 'significant uncertainties' remain over how it will work.

Have you registered with us yet?

Register now to enjoy more articles and free email bulletins

Register

Already registered?

Sign in

Follow Us:

Just published

Former Brexit secretary backs vitamin D supplements to beat COVID-19

Former Brexit secretary backs vitamin D supplements to beat COVID-19

The NHS should provide 10 times the current daily recommended amount of vitamin D...

Identifying patients experiencing domestic violence and abuse in general practice

Identifying patients experiencing domestic violence and abuse in general practice

Dr Vasumathy Sivarajasingam describes a pilot project in her practice that used a...

Long COVID could ‘wreak havoc’ on NHS workforce and disrupt vaccine rollout

Long COVID could ‘wreak havoc’ on NHS workforce and disrupt vaccine rollout

High rates of COVID-19 infection and the impact of long COVID could 'wreak havoc'...

GPs can give COVID and flu jabs at same time, says NHS England

GPs can give COVID and flu jabs at same time, says NHS England

GPs can now administer COVID-19 and flu jabs at the same time, according to updated...

Areas hit hardest by COVID-19 fall behind on vaccine campaign

Areas hit hardest by COVID-19 fall behind on vaccine campaign

Regions of England hit hardest by COVID-19 cases have fallen behind the rest of the...

COVID-19 pandemic drives first recorded dip in patients registered with GPs

COVID-19 pandemic drives first recorded dip in patients registered with GPs

A rise in deaths and reduced immigration during the COVID-19 pandemic saw the first-ever...