Pension tax bills add to fear of doctor shortage

Survey has raised concerns over early retirement

Almost a quarter of doctors are considering taking early retirement as a result of the “punitive” tax bills they are facing, research has suggested.

A survey by the British Medical Association in Scotland found 64.7% of those questioned – mainly consultants and GPs – had either received a large pension tax bill or were expecting one.

As a result, 40% of the consultants and 39.8% of the GPs are now thinking about cutting back their work for the NHS. Meanwhile, 22.3% said they could take early retirement as a result of these bills, which have previously been estimated to cost doctors an average of £18,500.

The BMA released the findings of its survey as paediatric consultant Graeme Eunson took over as chairman of the organisation’s Scottish consultants committee.

It comes a week after official figures showed the NHS in Scotland is short of more than 500 consultants, with vacancy rates at their highest since 2007.

Dr Eunson said the number of doctors who could quit the NHS because of large pension tax bills was “extremely concerning”.

The BMA carried out the survey after warning annual and lifetime allowances for pensions were acting in a “complex and punishing combination” for doctors, leaving some medics worse off if they worked additional hours.

Dr Eunson said while Scottish Health Secretary Jeane Freeman had “acknowledged” doctors’ concerns, ministers north of the border must follow the example of England and give more flexibility for pension schemes.

A Scottish Government spokeswoman said: “It is very disappointing that the UK Government imposed these changes on hard-working health staff without consultation or thought on the impact on doctors or patients.

“The health secretary has written to the chancellor urging a quick resolution to avoid loss of expertise and called for an urgent review.

“We welcome the BMA findings and we continue to work in partnership with the BMA and other partners to improve the working lives of doctors, including further improving flexibilities around the pension scheme.

“We will continue to work with stakeholders, including the BMA and employers, on the impact on doctors’ working hours and out of hours services.”