11 March 2020

The College President comments on the changes to pensions tax announced by the Chancellor of the Exchequer in the Budget.

Professor Jo Martin said:

‘We welcome the proposals set out in today’s Budget that recognise the problems that current pension tax issues have caused for the NHS. The government’s proposals address the position for the majority of doctors and other senior staff which is pleasing.

The current pension arrangements have led to some consultants reducing their hours or taking early retirement. This is affecting patient care and making pressures on pathology services – which are already facing acute workforce shortages – even worse. It is crucial that these experienced clinicians continue working in the health service. 

It will be important to have detailed and transparent guidance that will make clear who will now be excluded from the taper tax and, for the very small proportion of individuals still affected, what this means and what measures they can take to mitigate the financial burden, if required.’