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In the news

‘Pension Tax Windfall For Top Earners’

Reports The Times Newspaper today

This is linked to the government’s attempts to implement a measure to reduce the impact pension tax rules are having on NHS clinicians and their willingness to take on additional work. Despite the announcement of an ‘exceptional measure’ on 26 November to allow the NHS to intervene to offset pension taxation for doctors working on the ‘front-line’ of healthcare for the 2019/20 winter, “few doctors have taken up the offer in recent weeks……trust, is the number one problem, people just don’t buy that they’re going to see this money.” This has caused the government to consider other options, such as raising the threshold from £110K to £150K at which pension contributions are counted as earnings, which would be applicable for all, not just the NHS.  It is our understanding that no decision has been reached yet and this article is speculative; the Budget on 11 March remains the likely date of any announcement.

The FPS remains committed to campaigning to seek a fair, long-term solution to pension taxation for Defined Benefit public sector schemes and we are actively engaged in this space..The central tenet to our engagements will remain that pension tax is having significant impact upon an increasing number of Armed Forces personnel, many of whom are on far more modest salaries than the ones being quoted today, and any long term solution for the NHS or other public services should be equally applicable to members of the Armed Forces.

You can read the article in The Times here - you may need to subscribe to read the full article.

You can also see us highlight this campaign in the January edition of The House Magazine

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