The row over NHS pensions escalated last night as doctors warned that a Government plan to solve the crisis was ‘certain to fail’.
Hospital waiting lists have soared in recent months as thousands of consultants and GPs are refusing to work overtime to avoid a punitive tax on their pensions.
Yesterday it emerged that one in three senior doctors are being affected as the Health Secretary unveiled a long-awaited plan aimed at ‘fixing’ the crisis.
The row over NHS pensions escalated last night as doctors warned that a Government plan to solve the crisis was ‘certain to fail’
But doctors immediately criticised Matt Hancock’s offer of a 12-week consultation on a more flexible pension scheme.
The British Medical Association said the only solution is to scrap the tax on pensions altogether.
And health service leaders warned the NHS ‘could not afford’ a lengthy consultation, which risks putting thousands more patients in jeapordy.
New rules mean GPs and consultants can be hit with tax rates of up to 90 per cent if they earn more than £110,000 a year, including any rises in their total pension value.
It means they are cutting back on any overtime or weekend work as they can be taxed thousands for earning a penny over the threshold.
This has caused hospitals to reduce their services, with some cases of cancer missed as a backlog of scans builds up.
Yesterday it emerged that one in three senior doctors are being affected as the Health Secretary Matt Hancock unveiled a long-awaited plan aimed at ‘fixing’ the crisis
Addressing the crisis yesterday, Mr Hancock said: ‘Too many of our most experienced clinicians are reducing their hours, or leaving the NHS early because of frustrations over their pension.
‘I want them to know that I am listening and I want to work with them to fix it for the sake of patients.
‘We want to make it easier for our hardworking senior doctors to balance their workload, their pension pot and their tax bill – with more flexibility, more choice, and less need to pay upfront.’
He launched a three-month consultation on changes to the scheme. It proposes a 50:50 solution – meaning doctors can halve their pension contributions in exchange for halving the rate of pension growth.
‘Around a third of NHS consultants and GP practice partners have earnings from the NHS that could potentially lead to them being affected by the tapering annual allowance,’ the document said.
However, doctors warned thousands more patients may have been put in jeopardy without urgent reform.
Chairman of the BMA consultants committee, consultant anaesthetist Dr Rob Harwood, said: ‘Doctors need to be able to return to doing the additional work they had routinely undertaken in the past.’
He warned that Mr Hancock’s plan was not flexible enough and said the ‘only real solution’ is for the limits on tax-free pension allowance to be scrapped immediately.
NHS figures revealed that staff numbers have risen in GP practices in recent months but the past three years has seen a decline in doctors despite a Government pledge
Dr Harwood said: ‘A 50:50 approach would be a substantial pay cut for GPs and hospital doctors, and – with such an unattractive offer – almost certain to be set to fail.
‘This consultation does little other than add to the intolerable dilemma facing many doctors – a commitment to their patients put in jeopardy by these ridiculous taxes which are forcing doctors to effectively pay to go to work.’
Saffron Cordery, deputy chief executive of NHS Providers, which represents hospital trusts, said: ‘We welcome the government’s efforts to solve the NHS pensions problem, however this consultation will need to come up with a fast response to what is an immediate and major problem for the NHS and the wider public sector.
‘It is already clear that the one proposal at the front and centre of this consultation does not go far enough to address this problem, which is now having an impact on NHS performance and patient care.’
The consultation was launched as doctors were offered a 2.5 per cent pay rise, backdated to April this year.
However, some top doctors complained this payrise will backfire as it will simply push them over the threshold and mean they are hit with hefty tax bills.
The BMA said: ‘Many senior doctors’ income is being significantly impacted by the punitive pension taxation, so this low pay rise merely adds to the overall position of doctors being undervalued and effectively paying to go to work.’