We are pleased that the Government has recognised the problems that current pension tax arrangements have caused for the NHS with clinicians retiring early or cutting back on sessions because of unacceptable tax bills. This has had a significant impact on medical workforce capacity and hence the ability to provide NHS services.
The Government’s proposals set out in the budget will address the position for the vast majority of doctors in both secondary and primary care and are therefore welcome.
It will be important to have detailed and transparent guidance that will make clear who will now be excluded from the taper tax and for the very small proportion of doctors still impacted, what this means and what measures they can take to mitigate the financial burden, if required.
We hope that doctors will now feel that the uncertainty of whether they will be financially punished or not for doing additional work has been removed and they will feel able to take on additional sessions if they so wish.
With the current Covid-19 crisis the need for all possible medical capacity is even more essential.
© 2021 Academy of Medical Royal Colleges.