Oral Answers to Questions

Paul Masterton Excerpts

Tuesday 21st May 2019 Commons Chamber

[Mr Speaker]

I am sure that the people of the Isle of Wight were most gratified that the right hon. Lady was among their number, even if only for a relatively short period.

[Paul Masterton (East Renfrewshire) (Con)]

4. What assessment his Department has made of the effect of the annual tapered allowance on members of the NHS pension fund.

[Ruth Jones (Newport West) (Lab)]

5. What assessment the Government have made of the effect of the annual tapered allowance on the (a) recruitment and (b) retention of doctors in (i) hospitals, (ii) primary care and (iii) the armed forces.

--- Later in debate ---

[Paul Masterton]

I am grateful to the Chancellor for that answer, and particularly to the Government for accepting that the taper contributes to capacity gaps and retention issues in the NHS. Given that the costs of increased waiting times, delayed diagnosis and knowledge gaps far outweigh the tax revenue generated, would not the sensible and fiscally responsible thing be just to scrap the taper altogether?

[Mr Hammond]

I understand my hon. Friend’s point. However, the overall reforms to pensions allowances that were made in the previous two Parliaments and include the tapered annual allowance are necessary to deliver a fair system and to protect the public finances. These measures affect only the highest-earning pension savers and are expected to raise £6 billion a year. But, as I said, we are monitoring the response of high earners in the NHS, and I expect that my right hon. Friend the Health Secretary will be able to make an announcement soon.