Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what recent discussions she has had with the Chancellor of the Exchequer on updating pension taxation rules for working hours for NHS staff pensions and before 24 March 2022.

The pension measures in Section 45 of the Coronavirus Act 2020 allow retired and partially retired staff to return to work or increase their working commitments without the risk of having their pension benefits suspended.

Since March 2020, the 16 hour rule, abatement of ‘Special Class’ members of the 1995 Section - staff with the reserved right to retire at 55 years old without an actuarial reduction - and abatement of draw down members in the 2008 Section and 2015 Scheme have been suspended. Abatement recognises that ‘Special Class’ members have a significant benefit not available to other staff in the National Health Service. Once abatement is resumed, staff will still be able to continue working for the NHS, typically at least half time. Other staff are not subject to abatement after taking their pension.

These measures are set to expire on 24 March 2022, with the NHS Pension Scheme rules returning to business as usual arrangements. However, the Department will keep this under review. While there have been no formal discussions, we continue to have a regular dialogue with HM Treasury officials on a range of matters relating to the NHS Pension Scheme.