NHS: Workplace Pensions

(asked on 17th October 2022) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, what assessment has she made of the potential impact of the Government's policy on NHS pension taxation on workforce numbers in NHS England.


Answered by
Will Quince Portrait
Will Quince
This question was answered on 3rd November 2022

Tax policy is a matter for the Chancellor, and the annual and lifetime allowances apply to all industries and occupational pension schemes.

The vast majority of NHS staff are able to build pensions tax-free. However, the generosity of the scheme and well-remunerated careers means that some senior clinicians exceed their allowances for tax-free saving.

The Government has previously delivered a manifesto commitment to solve the taper issue in doctors’ pensions, by increasing the tapered annual allowance thresholds by £90,000 to exclude 98% of GPs and 96% of consultants from the scope of the taper based on NHS earnings. Pension tax should not impact on take home pay and the Scheme Pays facility allows members to meet a tax charge from the value of their pension pot.

We are working with NHS England to ensure that NHS employers are able to offer local solutions to address pension tax issues for their clinicians, including the option of employer pension contribution recycling.

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