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NHS waiting lists surge due to pensions row | NHS waiting lists surge due to pensions row |
(30 minutes later) | |
Waiting lists for routine surgery have risen by up to 50% in England because senior doctors say they cannot afford to work extra shifts. | Waiting lists for routine surgery have risen by up to 50% in England because senior doctors say they cannot afford to work extra shifts. |
Consultants have begun refusing to work beyond their planned hours after receiving unexpected tax bills, following new pension rules in 2016. | Consultants have begun refusing to work beyond their planned hours after receiving unexpected tax bills, following new pension rules in 2016. |
NHS hospitals said delays are becoming increasingly routine as a result. | NHS hospitals said delays are becoming increasingly routine as a result. |
The Department of Health said it aimed to solve the problem with more flexible pensions. | The Department of Health said it aimed to solve the problem with more flexible pensions. |
Consultants who earn more than £110,000 a year faced new limits on how much they could contribute to their pension from 2016. Complex rules mean the charges can be unpredictable if they go over the allowance. | Consultants who earn more than £110,000 a year faced new limits on how much they could contribute to their pension from 2016. Complex rules mean the charges can be unpredictable if they go over the allowance. |
But those near the threshold have have few options to avoid the impact, other than reducing their hours, quitting the NHS pension scheme or taking early retirement. | But those near the threshold have have few options to avoid the impact, other than reducing their hours, quitting the NHS pension scheme or taking early retirement. |
How does the system work? | |
The government gives tax relief on contributions to pension schemes, and allows up to 25% of the benefits to be taken tax-free at retirement. | |
Since 2006, there have been limits on the amount that can be contributed each year and the total benefit that can be built up over a career. | |
If the growth in a doctor's pension scheme exceeds this annual allowance they face a charge, or a reduction in their pension benefits. | |
The limit on the annual allowance has come down from £255,000 a year in 2010-11, to £40,000 a year for those earning broadly less than £110,000 in 2018-19. | |
In addition, a tapered annual allowance was introduced in 2016 for higher earners. This means that the annual allowance is reduced by £1 for every £2 earned, says the British Medical Association (BMA). | |
It says a major problem for doctors is that all their income is taken into account when calculating their annual allowance, including work that is non-pensionable. In addition, the annual allowance is based not just on their annual income, but also on the growth in their pension pot. | |
Because of the way the allowance is calculated many consultants will face a significant tax bill even if their earnings are only just above £110,000 a year. | |
NHS Providers, which represents hospital trusts, said senior staff were now saying they could not afford to work at weekends to bring waiting lists down. | NHS Providers, which represents hospital trusts, said senior staff were now saying they could not afford to work at weekends to bring waiting lists down. |
A senior anaesthetist at one hospital worked 27 Saturdays last year to reduce waiting times but now cannot afford to, the organisation said. | A senior anaesthetist at one hospital worked 27 Saturdays last year to reduce waiting times but now cannot afford to, the organisation said. |
Another hospital has seen numbers waiting for routine surgery increase by 50% since April, with staffing issues due to the pensions problem partly to blame. | Another hospital has seen numbers waiting for routine surgery increase by 50% since April, with staffing issues due to the pensions problem partly to blame. |
The Guardian reported that the Royal Bournemouth Hospital has 53 sessions of surgery and 150 procedures uncovered between now and 27 July because no consultant anaesthetists are available. | The Guardian reported that the Royal Bournemouth Hospital has 53 sessions of surgery and 150 procedures uncovered between now and 27 July because no consultant anaesthetists are available. |
NHS Providers said a solution is needed urgently and the government is moving too slowly. | NHS Providers said a solution is needed urgently and the government is moving too slowly. |
The Department of Health said it wanted to make pensions more flexible, so senior doctors would be able to reduce their contributions and avoid breaching the allowance. | The Department of Health said it wanted to make pensions more flexible, so senior doctors would be able to reduce their contributions and avoid breaching the allowance. |
Dr Rob Harwood from the BMA said: "No doctor wants to do anything but their best for their patients but if, in doing so, they face bills of tens of thousands of pounds, something has to change." |