Ministers overhaul NHS pensions rules as waiting lists rise

Ministers have announced plans to overhaul a pension “tax trap” blamed for deterring senior doctors and nurses from taking on additional shifts for fear of being hit with significant tax bills.

Medics had refused to do overtime shifts because they were being landed with bills after changes to the amount that can be accumulated tax free.

The BBC says the row has been “linked to a rise in waiting times for routine surgery caused by medics refusing to work beyond their planned hours”.

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One hospital trust told Sky News its waiting list for operations increased by 50% in a matter of weeks, “entirely due to staff like anaesthetists who had been working every other weekend saying it was costing them money to come to work”.

The Guardian adds that: “some hospital doctors warned that the NHS was already facing ‘a full-blown winter meltdown’ as a result of the crisis”.

Boris Johnson had promised to address the issue after it was revealed that about three quarters of GPs and consultants had cut or planned to cut their hours. Under what is described by ministers as an “immediate solution,” doctors will be able to reduce the level of the pension contributions they make to ensure that they are not hit with large tax bills.

“NHS doctors do extraordinary, life-saving work every day, and they should not have to worry about the tax impacts if they choose to go the extra mile by taking on additional work to help patients,” said Health Secretary Matt Hancock.

Chancellor Sajid Javid has also announced a broader review that will explore whether to increase the £150,000 salary threshold at which all workers have to limit the amount paid into their pensions before they are taxed.

Chaand Nagpaul, chairman of the council of the British Medical Association, said: “After a year’s tireless lobbying by the BMA on the damaging and perverse effect that this legislation is having on our NHS, its doctors and patients, it is good to see the government finally sitting up and taking notice and proposing action.”

However, The Times says “many” doctors say the overhaul does not go far enough.

Labour's shadow health secretary Jonathan Ashworth says the staffing crisis in the NHS is the result of cuts and ministerial incompetence, which have caused growing waiting lists and cancelled operations.