NHS Pensions: Taxation

Debate between Anneliese Dodds and Elizabeth Truss

Monday 8th July 2019 Commons Chamber

[Elizabeth Truss]

The answer to my hon. Friend’s first question is that the Health Secretary is currently in discussions with the British Medical Association and other health representatives about precisely what can be done, and of course the consultation will come out shortly. Some of the issues he mentioned in terms of legislation will clearly be a matter for the new Prime Minister and Administration, but the fact that my hon. Friend has raised this urgent question today will draw to people’s attention the urgency of this issue and one would expect it to be considered very early on by a new Administration. The point I was trying to make earlier is that there is a fundamental distinction between how we deal with the issues in the NHS, on which the Health Secretary is leading, and the broader issue of our pension system, which is there to encourage people to save. That has to be considered in a holistic manner so we cannot just design it around one workforce. It has to be designed to work for everybody in both the public and private sectors. That takes time of course, and we are working through some of the conclusions of the reforms that took place a few years ago.

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

I am grateful to the hon. Member for South West Bedfordshire (Andrew Selous) for asking this urgent question. It follows a Westminster Hall debate two weeks ago on this issue, when Members from across the House raised concerns about the Government’s mismanagement of the interaction between their pensions relief policies and the NHS pension schemes.

The worst-case scenario that we all feared has become a reality. Hospital leaders are raising the alarm that waiting lists for routine surgery have risen by up to 50%. Unless this issue is dealt with, there is a risk that the approach of the end of the financial year will lead to even greater levels of working to rule after the summer.

The changes that have led to these issues relate to the interaction of the taper, which George Osborne introduced in the summer Budget of 2015, with other rules on tax reliefs and the three NHS pension schemes. Despite decisions being taken around these measures some time ago, there appears to have been next to no communication by the Government with representative groups about this issue until the crisis had already begun. That is very different from the “constant review” that the Chief Secretary to the Treasury has just referred to.

It is fair that tax reliefs should be consistent with other core principles of taxation and that the pension allowance should decline progressively for those people who earn high incomes. However, at issue here is the interaction of that system with the NHS pension schemes, on which the representative organisations maintain they were not properly consulted. Many consultants are only now becoming aware of their liabilities. I asked two weeks ago, and I ask again, whether the Government believe that their communication with those affected has been sufficient. Furthermore, does the Chief Secretary to the Treasury believe it is acceptable that many of those affected have not even received pension statements in a timely manner, due to delays by Capita? Surely that is only exacerbating these problems.

The Government have maintained—the Chief Secretary to the Treasury did this again a moment ago—that this issue will be solved by the 50:50 pension option proposed in the NHS people plan released last month. However, a number of representative bodies have already expressed concerns about this option. So my third and last question to the Chief Secretary to the Treasury is: what discussions has her Department had with the Department of Health and with those representative bodies about the 50:50 scheme? It has been painfully clear from the Westminster Hall debate, and again this afternoon, that there has been an abject lack of co-ordination across Departments on this issue.

I am sure that many of us are concerned about the lasting impact of today’s crisis. NHS staff retention is already poor. This issue is one of many affecting dedicated senior staff, with large numbers raising concerns about levels of stress and a general lack of resource. A whole variety of Government failures is driving these retention problems. Today’s crisis is likely to add to this, with confusion over pension relief pushing many to retire earlier than they previously would have done, or encouraging some to opt to take on additional private work. I am concerned not only for those consultants but for their patients. There are currently 100,000 NHS staff vacancies; that is one in 11 of all NHS posts. This latest failure will see yet more delays for people in desperate need of care, unless the whole of this Government, working together, get a grip.

[Elizabeth Truss]

We acknowledge that there is an issue. That is why the Health Secretary is poised to launch the consultation—

Oral Answers to Questions

Debate between Anneliese Dodds and Elizabeth Truss

Tuesday 21st May 2019 Commons Chamber

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

Thank you, Mr Speaker; take two. The Environment Secretary said to Extinction Rebellion that he, at least, had got the message, but of course days later his Government were panned by the Solar Trade Association for new tax changes that will affect solar and storage schemes. That contrasts with Labour’s announcement last week of plans for 1.75 million households to benefit from the solar energy revolution. So will this Government abandon the damaging changes to VAT, match Labour’s solar investment plans and actually start taking renewables seriously?

[Elizabeth Truss]

As I said, we have an exemplary record in terms of our reduction of carbon. We are the top performer in the G7. It would be good to hear Opposition Members acknowledge the massive progress that we have made. The fact is that we are going to make more progress not by supporting a bunch of anti-capitalists that glue themselves to public transport, but by using market mechanisms instead, helping the economy grow. That is the way we improve the environment.

Oral Answers to Questions

Debate between Anneliese Dodds and Elizabeth Truss

Tuesday 11th December 2018 Commons Chamber

[Elizabeth Truss]

I celebrate when the UK economy is doing well and I celebrate when the Scottish economy is doing well. I was recently in Scotland meeting the Scottish Finance Minister and talking about measures to improve growth. What I think will be interesting is to see, in tomorrow’s Scottish budget, whether the Scottish Government match the tax cuts that we have made across the rest of the UK—or will Scottish taxpayers end up paying more?

[Anneliese Dodds (Oxford East) (Lab/Co-op)]

The Resolution Foundation has found that millennials’ weekly earnings are less than those of the previous generation at the same age, which is unprecedented. That is due to more insecure and low-paid jobs, and less job mobility. As well as stronger workers’ rights, halting the decline in business investment would help, but that needs business confidence. Will the Chief Secretary tell me why her Government are listening only to the European Research Group, not to the voice of business when it says that we need a permanent customs union?

[Elizabeth Truss]

The hon. Lady obviously has not seen today’s wages figures, which show that real pay grew by 0.8%, and we are seeing more and more young people getting into work.