On the go: The Department for Health and Social Care is under fire for reportedly deciding to pursue its ‘50:50’ reform for NHS Pensions before it had received a report commissioned from its advisory board.
According to the Financial Times, the NHS pension scheme’s advisory board had been considering a wide range of reforms to medical staff’s retirement provision, but Matt Hancock’s department pre-empted this advice in pushing for a 50:50 solution.
Under the health department’s proposal, doctors would be allowed to halve their contributions, potentially avoiding accidentally triggering punitive tax charges, in exchange for half as much accrued pension entitlement. Currently, NHS workers have been found to be retiring early to avoid charges, leaving the health service short of experienced staff.
The 50:50 arrangement under consultation by the government has failed to garner the support of medical trade unions. Last month, the Hospital Consultants and Specialists Association called it a “half-hearted” change that “will do little to tackle the problems facing hospital doctors”.
“The so-called 50:50 option will leave many facing a stark choice between slashing their retirement contributions in half, and eroding their pension, or gambling that they will not fall foul of the annual allowance and taper thresholds,” said HCSA pensions committee chair Dr John West.
Meanwhile on Monday, the British Medical Association told The Telegraph that doctors were continuing to retire early as a result of the existing pension arrangements. Deputy chair Dr David Wrigley called for reform to pensions taxation to avoid further losses.
