Asked by: Lord Lipsey (Labour - Life peer)
Question to the Department of Health and Social Care:
To ask Her Majesty’s Government, further to the remark by Lord Newby on 5 February that for deferred payments, the "lump sum is income in the year taken" (HL Deb col 791), whether they will set out the accurate position with regard to the effect of taking a lump sum in excess of £23,250 instead of an annuity on a person’s eligibility to take a direct payment.
Answered by Earl Howe - Shadow Deputy Leader of the House of Lords
Further to the debate on the Pension Schemes Bill Third Reading (HL Deb col 791), I would like to clarify the point made by my Noble Friend Lord Newby, in response to a question raised by the Noble Lord, Lord Lipsey. In Lord Newby’s response, he set out the position in relation to how lump sums accessed under the new pension reforms would be treated under the tax rules. However, I understand that the Noble Lord, Lord Lipsey was referring to the treatment of such funds under the charging rules for social care.
The new pension reforms will come into force on 6 April and will allow people with defined contribution pensions to access their pensions more flexibly. Where someone chooses to take up this flexibility and withdraw a lump sum, this will be treated as capital. This will then be taken into account in calculating what a person can afford to contribute towards the cost of their care based on the social care charging rules for the product the funds have been moved to. To be treated as income, the resources would need to be in respect of a specified period or form part of a series of payments.
With regard to Deferred Payment Agreements (DPA), the universal scheme introduced under the Care Act will come into force on 1 April 2015 and sets out a national framework for whom a local authority must offer a DPA to. This is based on their level of non-housing assets which is assessed according to the charging framework for social care.
People will therefore need to be aware of how their pension choices may affect what they are asked to contribute towards the cost of their care and their options for meeting that cost.
The Government has committed to support the new pensions freedoms through free and impartial guidance from Pension Wise, to help people make informed and confident decisions about how they use their defined contribution pension savings in retirement. The service will encourage consumers to consider issues such as long term care needs in the context of their decision, signposting consumers to sources of further specialist information as appropriate.
Asked by: Lord Lipsey (Labour - Life peer)
Question to the Department of Health and Social Care:
To ask Her Majesty’s Government what adjustment they intend to make to the £23,250 non-housing capital asset limit for the deferred payment scheme when the capital limit for means-tested care benefits rises from £23,250 to £118,000 in April 2016.
Answered by Earl Howe - Shadow Deputy Leader of the House of Lords
We intend to raise the capital-related eligibility criterion, which currently requires a person to have less than £23,250 in non-housing assets, to £27,000 from April 2016. This mirrors the increased upper capital limit which will apply when a person’s property is disregarded from April 2016.
Local authorities will retain discretionary powers to offer deferred payments to people who do not meet the eligibility criteria but might otherwise benefit.
Asked by: Lord Lipsey (Labour - Life peer)
Question to the Department of Health and Social Care:
To ask Her Majesty’s Government what are the (1) average and (2) median, earnings of a partner general practitioner in England and Wales.
Answered by Earl Howe - Shadow Deputy Leader of the House of Lords
The information in relation to salaried general practitioners (GP) (HL2015) is recorded in the following table:
Salaried GPs – Income before tax in Cash terms – England and Wales 2012-13 | ||||||
| Mean Earnings | Median Earnings | ||||
Gross Income | Expenses | Income before Tax | Gross Income | Expense | Income before Tax | |
England | £64,700 | £8,100 | £56,600 | Data not held
| £53,700 | |
Wales | £65,200 | £11,100 | £54,100 | Data not held
| £53,300 | |
The information relating to partner general practitioners (HL2016) is recorded in the following table:
Contractor GPs – Income before tax in Cash terms – England and Wales 2012-13 | ||||||
| Mean Earnings | Median Earnings | ||||
Gross Income | Expenses | Income before Tax | Gross Income | Expense | Income before Tax | |
England | £289,300 | £184,200 | £105,100 | Data not held | £102,100 | |
Wales | £233,800 | £142,800 | £91,000 | Data not held | £90,700 | |
Copyright © 2014 Health and Social Care Information Centre
Source: GP Earnings and Expenses Enquiries
Notes:
The tables are presented in cash terms of income before tax for contractor GPs (partners) and salaried GPs under a General Medical Services (GMS) or Personal Medical Services (PMS) contract and exclude expenses. This is taxable income before pension contributions are deducted, made up of gross earnings less total expenses, also known as net income. |
The data covers income from both NHS and private sources where a GP has at least some NHS income. Figures are rounded to the nearest £100.
The median earnings gross income and expenses data is not held, only the income before tax. |
Data is for GPs under a GMS or PMS contract only
Asked by: Lord Lipsey (Labour - Life peer)
Question to the Department of Health and Social Care:
To ask Her Majesty’s Government what are the (1) average, and (2) median, earnings of a salaried general practitioner in England and Wales.
Answered by Earl Howe - Shadow Deputy Leader of the House of Lords
The information in relation to salaried general practitioners (GP) (HL2015) is recorded in the following table:
Salaried GPs – Income before tax in Cash terms – England and Wales 2012-13 | ||||||
| Mean Earnings | Median Earnings | ||||
Gross Income | Expenses | Income before Tax | Gross Income | Expense | Income before Tax | |
England | £64,700 | £8,100 | £56,600 | Data not held
| £53,700 | |
Wales | £65,200 | £11,100 | £54,100 | Data not held
| £53,300 | |
The information relating to partner general practitioners (HL2016) is recorded in the following table:
Contractor GPs – Income before tax in Cash terms – England and Wales 2012-13 | ||||||
| Mean Earnings | Median Earnings | ||||
Gross Income | Expenses | Income before Tax | Gross Income | Expense | Income before Tax | |
England | £289,300 | £184,200 | £105,100 | Data not held | £102,100 | |
Wales | £233,800 | £142,800 | £91,000 | Data not held | £90,700 | |
Copyright © 2014 Health and Social Care Information Centre
Source: GP Earnings and Expenses Enquiries
Notes:
The tables are presented in cash terms of income before tax for contractor GPs (partners) and salaried GPs under a General Medical Services (GMS) or Personal Medical Services (PMS) contract and exclude expenses. This is taxable income before pension contributions are deducted, made up of gross earnings less total expenses, also known as net income. |
The data covers income from both NHS and private sources where a GP has at least some NHS income. Figures are rounded to the nearest £100.
The median earnings gross income and expenses data is not held, only the income before tax. |
Data is for GPs under a GMS or PMS contract only