MPs call NHS pensions ‘national scandal’ as doctors forced to leave

In a report published on July 25, the committee said it heard evidence of senior medical staff both reducing their hours and retiring earlier than they would otherwise due to pension concerns.

The MPs referenced a recent survey by the Royal College of Surgeons of England, which found that 69 per cent of respondents had reduced the amount of time they spent working in the NHS as a direct result of changes to pension taxation rules.

In 2019, the Royal College of Physicians found that more than 50 per cent of the 2,800 doctors surveyed had retired earlier than previously planned, with most citing pension concerns as a reason.

The committee said: “It is a national scandal that senior doctors are being forced to reduce their working contribution to the NHS or to leave it entirely because of NHS pension arrangements. 

“We accept the government has made some progress in this direction with changes to the taper rate of the annual allowance.

“But the problem persists, and having rejected calls to establish a tax-unregistered scheme the government must act swiftly to establish an alternative scheme and prevent the early retirement of consultants from the NHS.”

The British Medical Association warned that without decisive action on pensions, more than 10 per cent of the consultant workforce, and a similar proportion of GPs, are likely to retire within the next 18 months.

Wayne Jaffe, consultant plastic and reconstructive surgeon at the University Hospital of North Midlands NHS Trust, described his retirement as happening “almost against his will”, in the context of “a cull of senior doctors” faced with “unfair and punitive additional taxes which I have to pay each year because of my seniority”.

The committee said Jaffe was “paying tens of thousands of pounds additional tax each January due to pension growth”.

It advocated a number of actions the government should take to prevent “haemorrhaging senior staff”. 

The report recommended that the NHS commits that, within 12 months, all regular NHS staff should be able to opt for similar flexibilities to those enjoyed by locum or agency staff. 

This should include making reduced or flexible hours available to everyone, but especially those with caring responsibilities and those nearing retirement, with increased flexibility for homeworking using technology.

It said NHS England should develop a national NHS “retire and return” policy to replace ad hoc local schemes, which should include greater flexibility in the role that more senior members of the workforce can play, including around late-night and on-call working. 

The report said: “Clearly, the government’s changes to tax regulations have not gone far enough to remedy this crisis. 

“With mounting waiting lists and ever-increasing demands, the NHS cannot afford to lose staff who are willing and able to work, and urgent action is needed to reform NHS pensions and prevent the haemorrhage of senior staff.”

It added: “The government must act swiftly to reform the NHS Pension Scheme to prevent senior staff from reducing their hours and retiring early from the NHS.”

A Department of Health and Social Care spokesperson said: “We hugely value and appreciate the dedication and contribution of NHS and social care staff. We are growing the health and social care workforce, with over 4,000 more doctors, and 9,600 more nurses compared with last year, and over 1,400 more doctors in general practice compared with March 2019.

“As we continue to deliver on our commitment to recruit 50,000 more nurses by 2024, we are also running a £95mn recruitment drive for maternity services and providing £500mn to develop our valued social care workforce, including through training opportunities and new career pathways.

“We have commissioned NHS England to develop a long-term workforce plan to recruit and support NHS staff while they deliver high-quality, safe care to patients and help to bust the Covid backlogs.”

This article first appeared on FTAdviser.com