Oral Answers to Questions

Ruth Jones Excerpts

Tuesday 21st May 2019 Commons Chamber

[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.

[David Linden (Glasgow East) (SNP)]

6. What recent discussions he has had with Cabinet colleagues on the NHS pension scheme tapered annual allowance.

--- Later in debate ---

[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.

[Ruth Jones]

A number of hospital consultants who live in my constituency have written to me to express their concern at the implications of the tapered annual allowance. With GP numbers continuing to fall, ongoing shortages across consultant specialties and armed forces doctors currently experiencing a 23% workforce shortfall, how is the Chancellor going to help doctors and patients by resolving the unintended consequences caused by the annual tapered allowance and lifetime annual allowance that are leading to doctors who would otherwise be happily continuing to work having to leave the profession to avoid disproportionate and unfair tax bills?

[Mr Hammond]

I think I have answered that question, but it is good to hear Labour MPs focusing on the disincentive effect of high taxation, particularly on professionals in our public services. Someone has to be earning £150,000 a year before the tapered annual allowance affects them. I would suggest that perhaps Labour Members who do understand the detrimental effect of very high marginal tax rates on professionals in our public services make those representations to their right hon. Friend the shadow Chancellor, who is intending to raise tax for everybody earning more than £80,000 a year.