Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what recent assessment he has made of the effect of changes to the NHS Pension Scheme and tax arrangements have had on senior consultants in the NHS.

The Department has sought to make available to NHS Pension Scheme members all possible flexibility under Her Majesty’s Revenue and Customs legislation and the current fiscal framework for public sector pension schemes.

The Department has therefore recently made changes to the NHS Pension Scheme to extend the scope of the ‘Scheme Pays’ facility. The ‘Scheme Pays’ facility allows scheme members to manage tax liabilities by paying annual allowance charges from the value of their pension benefits rather than upfront. This facility has been extended to cover payment of tax charges of any amount, and those arising from the tapered annual allowance.

The Department recognises that the tax implications of the annual allowance, particularly the effects of the taper, may contribute to decisions from consultants to retire early or limit their National Health Service commitments. We are also listening carefully to senior doctors and NHS employers about those concerns. The Government keeps the impact of public sector pay and pensions policies under constant review.