Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

Personnel Today

Register
Log in
Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+

NHSTaxLatest NewsPublic sectorOvertime

Consultation into NHS pensions flexibility launched

by Ashleigh Webber 12 Sep 2019
by Ashleigh Webber 12 Sep 2019 Peter Byrne/PA Wire/PA Images
Peter Byrne/PA Wire/PA Images

A new consultation into NHS pension changes designed to enable senior clinicians to work additional shifts without facing prohibitive tax bills has been launched.

A third of consultants and GPs are thought to have earnings that would potentially result in them breaching the tapered annual allowance limit if they take on additional shifts, according to the Department of Health & Social Care.

Public sector pensions

Legal challenge in pipeline over teachers and doctors’ pensions

Landmark public sector pension ruling confirmed

The new proposals, which replace the 50:50 option set out in July, include giving senior clinicians the ability to choose the level at which their pension will grow at the start of each tax year and pay correspondingly lower contributions.

They will also have the option to top-up their pension pot to the maximum amount towards the end of the tax year when their total earnings are clearer.

NHS employers have reported that increasing numbers of consultants are no longer willing to work additional sessions to reduce waiting lists, fill rota gaps or take on additional supervisory responsibilities because of the current pension tax rules.

According to a BMA Scotland survey of 600 doctors, 64.7% had been hit with a tax bill or were expecting one. As a result, more than half said they had reduced their hours or were planning to do so.

The consultation says the new proposals “offer very significant opportunities for senior clinicians to continue to provide additional care for the NHS by tailoring their pension accrual to the level they wish to achieve, taking into account desired pension growth and the tax implications”.

To succeed we need to see NHS employers doing their part and recycling all of the employer contributions. If they don’t it’s still an effective pay cut for doctors for doing extra shifts,” – Dr Phil De Warren-Penny, BMA.

Those who receive large pay rises will also be protected from sudden tax charges on their pension. If a clinician has a large increase in pensionable pay, the amount by which the new pay level contributes towards their pension will be phased over a number of years.

Danny Mortimer, chief executive of NHS Employers, said giving staff greater flexibility over their own pension would have a positive impact on NHS service capacity.

“These new proposals helpfully acknowledge that more scheme flexibilities are needed, over and above the previously proposed 50:50 section, to help senior clinicians to manage their pension growth within the pension tax allowances.”

However, BMA consultants committee deputy co-chair Dr Phil De Warren-Penny said the proposals would not completely resolve the issue.

“To succeed we need to see NHS employers doing their part and recycling all of the employer contributions. If they don’t it’s still an effective pay cut for doctors for doing extra shifts,” he said.

“The real heart of the problem is the tapered annual allowance which must be removed along with the annual allowance and lifetime allowance. Only when these are removed can doctors return to working extra shifts to help remove waiting list backlogs and support colleagues where there are rota gaps, without fear of receiving huge tax bills.”

The Treasury is reviewing how the tapered annual allowance affects the delivery of public services, the consultation suggests.

It says: “The Department recognises that, even with the important further flexibilities set out in this consultation, dealing with the complexities of the interaction between tax, pay, pensions and additional work for the NHS can be burdensome for hard working staff.”

The changes, if taken forward, are expected to be introduced in time for the next tax year. The government will work with employers and staff representatives to develop a tool that will help clinicians maximise their clinical work without facing large tax bills.

Ashleigh Webber
Ashleigh Webber

Ashleigh is editor of OHW+ and HR and wellbeing editor at Personnel Today. Ashleigh's areas of interest include employee health and wellbeing, equality and inclusion and skills development. She has hosted many webinars for Personnel Today, on topics including employee retention, financial wellbeing and menopause support. Prior to joining Personnel Today in 2018, she covered the road transport sector for Commercial Motor and Motor Transport magazines, touching on some of the employment and wellbeing issues experienced by those in road haulage.

previous post
Suicidal NHS worker threatened with legal action awarded £92k
next post
Shorter working week would be ‘unrealistic’, report finds

Leave a Comment Cancel Reply

Save my name, email, and website in this browser for the next time I comment.

You may also like

Gender pensions gap is more a ‘gaping chasm’

6 Jun 2023

Dozens of employers affected by Capita data breach

31 May 2023

Ministers put off decision to increase pension age...

30 Mar 2023

‘Living Pension Employer’ scheme launched

21 Mar 2023

University staff consider new offer but strikes continue

15 Mar 2023

Budget 2023: childcare reforms and ‘returnerships’ announced

15 Mar 2023

Labour market figures March 2023: vacancies continue to...

14 Mar 2023

Government backs plans to lower pensions auto-enrolment age

6 Mar 2023

Three-quarters of ethnic minorities don’t have a workplace...

6 Feb 2023

DC pensions’ value for money to be made...

31 Jan 2023

  • The HR Bundle: Your one-stop guide to building a successful global HR Department PROMOTED | Get your hands on Deel’s free HR bundle...Read more
  • The Benefits of an Employee Assistance Programme PROMOTED | EAPs support employees in a range of ways...Read more
  • Intergenerational working and how to manage up and down the generations PROMOTED | The benefits and challenges of intergenerational workplaces...Read more
  • Bereavement in the workplace: How training can help HR get it right PROMOTED | HR professionals play an essential role...Read more
  • UK workforce mental wellbeing needs PROMOTED | The mental wellbeing support employers are providing misses the mark...Read more

Personnel Today Jobs
 

Search Jobs

PERSONNEL TODAY

About us
Contact us
Browse all HR topics
Email newsletters
Content feeds
Cookies policy
Privacy policy
Terms and conditions

JOBS

Personnel Today Jobs
Post a job
Why advertise with us?

EVENTS & PRODUCTS

The Personnel Today Awards
The RAD Awards
Employee Benefits
Forum for Expatriate Management
OHW+
Whatmedia

ADVERTISING & PR

Advertising opportunities
Features list 2023

  • Facebook
  • Twitter
  • Instagram
  • Linkedin


© 2011 - 2023 DVV Media International Ltd

Personnel Today
  • Home
    • All PT content
    • Advertise
  • Email sign-up
  • Topics
    • HR Practice
    • Employee relations
    • Equality, diversity and inclusion
    • Learning & training
    • Pay & benefits
    • Wellbeing
    • Recruitment & retention
    • HR strategy
    • HR Tech
    • The HR profession
    • Global
    • All HR topics
  • Legal
    • Case law
    • Commentary
    • Flexible working
    • Legal timetable
    • Maternity & paternity
    • Shared parental leave
    • Redundancy
    • TUPE
    • Disciplinary and grievances
    • Employer’s guides
  • AWARDS
    • Personnel Today Awards
    • The RAD Awards
  • Jobs
    • Find a job
    • Jobs by email
    • Careers advice
    • Post a job
  • XpertHR
    • Learn more
    • Products
    • Pricing
    • Free trial
    • Subscribe
    • XpertHR USA
  • Webinars
  • OHW+