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NEWS: Pensions pledge – but is it new?

Doctors leaders have given a mixed reaction to the Prime Minister’s latest promise to resolve the pension trap that has led many GPs to plan to cut working hours.

Boris Johnson said that plans were under way to introduce more flexibility into doctors’ pensions to allow them to avoid the tax trap.

It was not clear whether he was referring to the current consultation on the so-called 50-50 pension proposal, which would allow doctors to opt out of part of their pension payments at the cost of a reduced pension. Health secretary Matt Hancock said at the launch of the consultation – before Mr Johnson became Prime Minister – that he was open to other ideas to tackle the problem.

The Royal College of GPs called for rapid implementation of any changes. Chair Professor Helen Stokes-Lampard said: “General practice is currently facing intense workforce pressures and current pensions arrangements are exacerbating these, so it is good to see the Government taking this issue seriously.

“If implemented correctly, the changes announced today are welcome – but many experienced GPs are already, and quite understandably, reducing the number of patient-facing sessions they work and are unable to take on additional teaching duties because of how this will adversely affect their pensions and taxation situation, so it is vital that changes are applied swiftly.

“At a time when GPs and our teams are really struggling with escalating workload, and with inadequate numbers of staff to safely undertake it – and our patients are waiting longer for an appointment as a result – we need to be doing everything we can to keep hard working, experienced GPs in the profession, and hopefully today’s announcement is a step towards that.”

British Medical Association chair Dr Chaand Nagpaul said: “While it is good that the Prime Minister appears to be beginning to recognise the scale of the problem, flexibility alone is not the solution – especially without employers’ full pension contributions being recycled back into doctors’ salaries.

“While flexibilities may help in the short-term, what is needed is a drastic overhaul of pension tax regulations, including the damaging annual allowance and tapered annual allowance, to stop this absurd situation and avert this grave threat to our NHS workforce and patients – and we will continue to push the Government for this crucial change.”

Mr Johnson said, writing in The Sunday Times: “It cannot be right, for instance, that people are waiting so long to see their GP; and it cannot be right that so many GPs and consultants are leaving the service, or cutting their hours, for fear of whopping tax bills. It is clear that something has gone badly wrong in the taxation of doctors’ pensions.

“So this government is listening. We are fixing it. We are changing the rules so that doctors no longer face a perverse incentive to reduce hours.”

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