Articles on pensions can often seem inaccessible and for all the complexity this timely paper from HFMA is worth a detailed read.
In a simplistic summary, changes to pension tax allowances are impacting doctors with a range of unintended consequences. Much has been written on shortage of GPs and doctors. Anecdotally, we are hearing that the impact of the pension allowances includes GPs retiring early to avoid the lifetime allowance issue or doctors who work additional sessions to clear waiting list backlogs being caught by the annual allowance. For a health sector trying to manage a range of challenges, revisiting pension tax allowances seems a pragmatic next step.
Recently there have been a number of articles in the press about the NHS pensions crisis and clinics being cut as a result of doctors leaving the NHS. The British Medical Association (BMA) is lobbying the government for changes to the NHS pension scheme or the current tax rules, arguing that the impact on NHS services is an unintended consequence of the recent changes to the tax legislation.