Scotland calls for solution to pension tax issue in March budget


  • Dawn O'Shea
  • UK Professional News
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Scotland’s health secretary has written to the UK chancellor Sajid Javid to urge him to take “decisive action” to reach a permanent solution to the pension tax crisis.

In the letter, Ms Jeane Freeman warns that the pension tax regime is having a serious effect on staff and health services, and she calls on the chancellor to use the upcoming budget to address the issue so that the current pension and taxation rules no longer undermine delivery of frontline health services for the people of Scotland and other UK nations.

She said the policy has not only had a negative effect of the ability to deliver and maintain frontline services, but it has also had an impact “on the sense of value of our staff”, Ms Freeman writes.

Last November the Scottish government introduced a temporary measure to allow NHS staff to opt into an employer contribution recycling scheme. However, Ms Freeman said a permanent solution is urgently required and can only be offered by the Lord Chancellor.

“It is incumbent upon you to take the opportunity of the March budget to fully and finally remedy the situation and allow our NHS staff to get on with delivering care without fear of the consequences,” Ms Freeman writes.