Practices could receive early guidance on how to put in place changes in pension flexibility in the current financial year, it has emerged.

Guidance is to be issued soon, the Department of Health said last night. The guidance will include details of how to “recycle” employer pension contributions into salary, it promised.

The promise appeared to be a response to criticism that a fresh consultation risked letting shortages of GPs escalate until doctors received certainty. By indicating that changes may take place this financial year the government will be hoping that doctors put on hold plans to reduce hours or take early retirement.

British Medical Association chair Dr Chaand Nagpaul said: “The new proposed flexibilities will provide short-term relief for many doctors, but they themselves do not tackle the core and underlying problem. This lies in tax reform, and as we have said before, it is the overhaul of the annual allowance and tapered annual allowance, that will make a difference to all doctors, including consultants, GPs and medics in the Armed Forces.

“It is positive that the Chancellor has committed to review the punitive tapered annual allowance. This marks an important step-change from the Government – and comes as the direct result of the BMA’s campaigning.

“The BMA will be glad to take up the invitation to work with the Chancellor, but we will continue to argue that wider reform to the annual allowance itself is also needed to guarantee changes that will solve the problem for all doctors.”

He added: “This situation has arisen as a result of tax policy created by Treasury and it is now up to the new Chancellor to be bold in resolving it.”

The health secretary Matt Hancock said: “NHS doctors do extraordinary, life-saving work every day – and they should not have to worry about the tax impacts if they choose to go the extra mile by taking on additional work to help patients.

“These comprehensive proposals will give doctors the pension flexibilities they have called for and need to make sure they are rewarded for extra work. We are taking immediate action and I hope these flexibilities will encourage our top NHS staff to fulfil the dedication of their mission: to care for their fellow citizens in time of need.”