Has the Chancellor Solved the Doctors' Pensions Crisis?


  • Dawn O'Shea
  • UK Professional News
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Chancellor Rishi Sunak increased income thresholds in the Budget to help solve the doctors' pension crisis – but is it enough?

Mr Sunak told the Commons: "I've listened to concerns from all sides of this house that the pensions tax system is preventing doctors from taking on more hours," and he said he was going to "significantly reduce the number of people that the tapered annual allowance affects".

"I'm increasing both taper threshold by £90,000 pounds, removing anyone with income below £200,000 pounds, based on their vital work for the NHS that will take around 98 per cent of consultants and 96 per cent of GPs, out of the taper altogether at the same time I'm reducing the minimum annual allowance to £4,000 pounds, which will only impact those with incomes above £300,000 pounds.

"This is a £2 billion pound commitment that supports our hard-working doctors."

The British Medical Association (BMA) responded on Twitter saying the "increase in the threshold income to £200,000 (or £240,000 adjusted) demonstrates he has listened to our mounting evidence, and for the vast majority of our members means that they will no longer be ‘paying to go to work'.

"We still believe that the fairest and most effective long-term solution to this crisis would be to remove the annual allowance from defined benefit pension schemes, such as the NHS pension scheme."