Graham Crossley, a pension specialist at wealth manager Quilter, has expressed concern over a troubling trend of NHS doctors retiring early, despite the tax breaks announced in the recent Budget. This trend could be exacerbated if Labour fulfills its promise to reintroduce the lifetime allowance if they win the next general election, according to Dr Sarah Tennant, chair of the hospital doctors’ union pensions committee.
Dr Tennant stated, “The possibility of the lifetime allowance being reversed might lead to a faster departure of senior doctors before a change in government. While the changes announced in the latest budget are positive, what the pension tax system desperately needs is stability and predictability.”
A spokesperson for the government responded, saying that their NHS pension reforms would encourage more senior staff to continue working for a longer period. They added that the impact of these measures should not be judged based on this small survey alone. According to their estimates, approximately 22,000 senior NHS clinicians may exceed the previous £40,000 annual allowance by 2023-24, and around 31,000 clinicians will have reached at least 75% of the £1.073 million lifetime allowance.
Furthermore, the government spokesperson emphasized that there are currently record numbers of staff working in the NHS, including over 5,400 more doctors compared to March 2022. Additionally, a Long-Term Workforce Plan will be published soon to address recruitment and retention of more staff.
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