NHS Pensions: Taxation

Debate between Elizabeth Truss and Philippa Whitford

Monday 8th July 2019 Commons Chamber

[Elizabeth Truss]

My right hon. Friend makes an interesting point. In general, I am in favour of lower taxes and a simpler tax system that always rewards those who go out to work.

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

Tapering lifetime allowances have already driven many senior doctors out of the NHS in their late 50s. The issue now is the tapering annual allowance, which is reduced by £1 for every extra £2 earned. This issue was raised in 2017; it has not just come to light. In May, the Chancellor talked about a threshold of £150,000, yet the problem kicks in at £110,000, and many senior consultants and GPs earn above that. The average extra bill is £18,500, but many have faced tax bills of almost £100,000. The British Medical Association survey shows that three quarters are citing this as a reason to retire. At the moment all income, including non-pensionable income, is included. That does not make sense, so can that be changed? It is not just earnings, but the growth of a pension, yet people might not live long enough for that to be income, so why is it counted? The BMA does not think that the 50:50 approach will solve the issue, so will the Treasury have open consultation and, because this is about interaction with the pension system, look at all the options? Otherwise, we will face a workforce meltdown.

[Elizabeth Truss]

As I said, the consultation will be launched fairly soon—the Health Secretary is looking at that—and people will of course be able to feed their views into it.

Oral Answers to Questions

Debate between Elizabeth Truss and Philippa Whitford

Tuesday 16th January 2018 Commons Chamber

[Dr Philippa Whitford (Central Ayrshire) (SNP)]

T9. Yesterday saw the successful Second Reading of the Space Industry Bill, which could see Prestwick in my constituency become the UK’s first spaceport, but the Ayrshire growth deal is central to ensuring the widest economic impact from that development. The three local authorities and the Scottish Government are backing it, so will the Chancellor now commit to the Ayrshire growth deal?

[Elizabeth Truss]

I can assure the hon. Lady that I am in regular discussions with the Secretary of State for Scotland about the growth deals across Scotland. We have already committed to a number of growth deals and are certainly looking at further ones.