The government has today announced new proposals to tackle the pension tax issue affecting senior NHS staff, though a joint statement from the Department of Health and Social Care and the Treasury. 

Our briefing highlights the three main approaches being taken or considered by trusts with senior consultants increasingly taking the decision to reduce their working hours, and other NHS staff opting out of the NHS pension scheme or declining promotions, to avoid punitive annual allowance tax bills. It also discusses further action which should be taken nationally to solve this problem for the long term.

The government has today confirmed that guidance will shortly be released on the local flexibility organisations can provide for staff in this financial year, as well as a new consultation proposing further contributions flexibility from April 2020. This consultation replaces the previous document outlining the 50:50 option in July, and a review of the annual allowance taper will follow.