Patients will be hit by doctor pension crisis
We’ll wait longer for operations and get worse care
PATIENTS will wait longer for operations and care will get worse in the face of a looming pensions crisis for doctors, the British Medical Association has warned.
The doctors’ union claims new pension rules are forcing consultants to substantially reduce their hours or take early retirement.
The BMA has written to Chancellor Philip Hammond warning the regulations are creating a ‘perfect storm’ for the NHS with ‘serious consequences’ for patients.
Doctors say they are being hit with huge tax bills on their pensions as a result of new rules that came into force in 2016. Some have told of being stung with five-figure tax bills after working overtime to help reduce waiting lists.
Dr Rob Harwood, chairman of the BMA’s consultant committee, said doctors’ ‘ only option’ was to cut back on their hours, to the detriment of their patients.
He added: ‘It cannot be right that doctors working extra hours to reduce waiting lists or cover rota gaps are then hit with additional tax bills greater than the value of the extra hours worked.
‘Unless action is taken, our only option is to reduce the amount of time we work for the NHS, which will be detrimental to our patients and to the country’s health service.’
Under the rules, if a doctor earns more than £110,000 and uses the full £40,000 pension allowance, a taper kicks in that gradually slashes their tax-free allowance down to £10,000.
This means they can be taxed thousands for earning a penny over the threshold.
Certain doctors have been hit with unexpected bills of over £80,000 and some have had to remortgage their homes to pay up. A BMA survey of 4,000 consultants found 30 per cent planned to cut back hours and 60 per cent intended to retire early because of the issue.
John Kell, of the Patients Association, said: ‘There’s no doubt patient care will suffer if vastly experienced doctors turn down extra shifts.
‘ The impact of this on patients is significant: from longer waiting hours for people in pain and discomfort to delays in cancer diagnosis, people who require care and treatment from doctors will be the ones affected.’
One NHS cancer treatment specialist said she had not taken on any extra shifts for two years, adding: ‘If nothing changes trusts are going to see spiralling waiting lists. It is just biting now and it is going to get worse.’
The Department of Health said: ‘We recognise the tax implications of the annual allowance and its impact on high earners in the NHS. We keep public sector pay and pensions policy under continuous review and are talking to the Treasury about this issue.’
The Treasury said: ‘Doctors benefit from one of the best defined benefit occupational pension schemes. But we have to get the balance right between encouraging saving and managing Government finances, which is why we restrict the tax relief available for the highest earners.’