Question to the Department of Health and Social Care:

To ask the Secretary of State for Health and Social Care, whether his Department has made an assessment of the potential impact of the delays in issuing (a) remedial pension savings statements and (b) remedial service statements on patient care.

The delays related to remediable service statements should have no direct impact on patient care. The members facing immediate financial consequences from their remedy benefit choice are retired members of the NHS Pension Scheme.

We understand from regular conversations with staff representatives that the highest-earning NHS Pension Scheme members have expressed concerns about predicting the tax consequences of taking on overtime prior to receiving a remedial pension savings statement (RPSS). Whilst no assessment has been made of the potential impact of RPSS delays specifically on patient care, there is no clear evidence from National Health Service payroll data that the annual allowance pension tax regime, to which RPSS’ relate, constrains the activity of the consultant workforce in aggregate. A range of factors may influence personal decisions around intentions to take on extra work, making it difficult to measure the unique impact of tax measures or statement delays.

From 6 April 2023, the standard annual allowance threshold increased from £40,000 to £60,000, giving individuals scope for greater tax-free pension growth. The tapered annual allowance further restricts the amount of tax-free pension saving available to the very wealthiest in society. The taper applies when taxable earnings reach £200,000.

Where NHS Pension Scheme members do incur annual allowance pension tax charges, these do not have to be met in the current tax year. The NHS Pension Scheme offers a Scheme Pays facility through which individuals can ask the scheme to pay the tax on their behalf in exchange for a fair reduction in the generous pension benefits paid at retirement.

The NHS Business Services Authority is continuing work to deliver outstanding statements as quickly as possible, and a process is in place for members to self-identify for a prioritised statement.