Freeman calling for action on tax charges

Health Secretary Jeane Freeman has written to the Chancellor urging him to act over an NHS pension issue which she says is undermining the delivery of frontline services.

Some senior staff are opting to reduce their hours or retire early as a result of UK Government pension rules which see them face extra tax liabilities for working longer.

The Scottish Government introduced a temporary policy from December whereby NHS staff have the option to get their employer pension contributions paid to them as part of their basic pay to avoid what the British Medical Association (BMA) describes as “punitive pension bills”.

The measure is due to end on March 31, and Ms Freeman has called on Sajid Javid to find a permanent solution.

In her letter to the chancellor, welcomed by the BMA, she said: “I am writing to strongly urge you to take the decisive action necessary to ensure pensions taxation rules no longer undermine delivery of frontline health services for the people of Scotland and other UK nations.

“The rules around Annual Allowances (AA) and Lifetime Allowances (LTA), together with the taper, continue to have a serious impact on NHS service delivery and staff, with clinicians across the NHS having to make unanticipated changes to their working commitments to avoid large and unexpected tax charges related to pension savings.

“These impact on the ability to deliver and maintain frontline services, and on the sense of value of our staff.

“The Scottish Government will continue to act to mitigate the harmful impact of pensions taxation rules on NHS staff and on frontline service delivery from April 2020 should this prove necessary.

“It is however clear that a permanent solution is urgently required, and can only be offered by your department.”

Jeane Freeman.