London Daily

Focus on the big picture.
Monday, Jul 13, 2026

Ministers act to end NHS pensions row amid waiting list rise

Ministers act to end NHS pensions row amid waiting list rise

The government has come up with new proposals for England and Wales to end the row with doctors over pensions. Doctors had started refusing to do overtime shifts because they were being landed with bills after changes to the amount that can be accrued tax-free.

Just weeks after ruling out reviewing the rules, ministers now say they will.

A consultation launched by Theresa May's government offering to introduce more pension flexibility is also being replaced by more radical solutions.

The previous consultation was only published on 22 July.

But it was reassessed following the appointment as prime minister of Boris Johnson, who had promised to address the issue during the Tory leadership contest.

The pensions row has been linked to a rise in waiting times for routine surgery caused by medics refusing to work beyond their planned hours.


What is being proposed?

The government said it would now be putting forward a plan to allow doctors complete flexibility when it comes to scaling down their pension contributions to avoid breaching the annual tax-free allowance.

The allowance has been reduced from £255,000 a year in 2010-11 to £40,000 - and drops still further for the highest earners.

This tends to affect those earning more than £110,000, around a third of senior doctors and GPs

Previously the government had said it favoured a 50:50 option whereby public sector staff could forsake half the amount paid into their pension.

But now ministers have said they will publish a consultation in the coming weeks which favours giving public sector staff the ability to reduce contributions to zero.

It will also allow doctors to be given the contributions the employer would have made, meaning their pay packets could be boosted by thousands of pounds a year.

Meanwhile, the Treasury has agreed to look at how public sector workers are taxed on their pensions to see if the rules can be relaxed.

Some doctors have reported being landed with huge unexpected tax bills.

What happens next?

The plans will be set out in a consultation published during the summer with a view to introducing them from April.

But to help relieve the problems immediately, the government is also promising to allow doctors to opt out from the pension scheme for this financial year.

Again, guidance will be published in the coming weeks.

The government hopes this will relieve the pressure on hospitals, which have reported waiting lists are lengthening because doctors are refusing extra shifts.

It will be up to Scotland and Northern Ireland to decide whether to make similar changes, although the way pensions work in those parts of the UK is slightly different anyway.

Health Secretary Matt Hancock said: "NHS doctors do extraordinary life-saving work every day - they should not have to worry about the tax impacts if they choose to go the extra mile by taking on additional work to help patients."

Dr Chaand Nagpaul, of the British Medical Association, said: "We acknowledge this step forward by the government."

"After tireless lobbying on the damaging effect that perverse and ill-thought out tax legislation is having on our NHS, its doctors and patients, it is good to see the government finally sitting up and taking notice and proposing action."

But Sara Gorton from the union Unison said: "Introducing measures to help only a small proportion of the millions of active NHS scheme members looks alarmingly like the beginning of a 'clinicians-first' approach to pension strategy."

Shadow health secretary Jonathan Ashworth said the pension changes had undermined the ability of the NHS to provide care to patients and ministers still need to do more to address existing staff shortages.

Newsletter

Related Articles

0:00
0:00
Close
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
Innovation-led growth strategy
Public service reform pressure
Defence and industrial security
Labour leadership transition and economic reset
Northern England Pushes for Greater Influence in Britain’s Future Economic Model
UK Technology Strategy Focuses on Life Sciences, Digital Innovation and Research Investment
Britain and United States Maintain Focus on Pharmaceuticals Cooperation and Industrial Growth
UK Public Services Face Continued Pressure as Government Promises Visible Improvements
Regional Economic Power Becomes Key Theme in Britain’s Next Political Phase
Britain Expands Support for Small Businesses as Firms Seek Better Access to Finance
UK Economy Remains Central Political Challenge as Cost of Living and Growth Concerns Persist
National Health Service Introduces New Workplace Reviews to Improve Conditions for Healthcare Staff
UK Life Sciences Sector Secures More Than Three Billion Pounds in Investment to Support Innovation
Britain Strengthens Defence Strategy as Security Concerns Reshape Military and Industrial Policy
Andy Burnham Promises Stronger UK Defence Industry and Expanded Domestic Production
UK Government Faces Difficult Spending Choices as Labour Leadership Transition Approaches
Rachel Reeves Warns Andy Burnham of Immediate Economic Challenges After Expected Leadership Change
Andy Burnham Prepares to Lead UK Government With Plans for Regional Power Shift and Economic Reset
Government Creates Emergency Support Scheme for Financially Struggling Universities
United Kingdom Replaces Traditional Farm Subsidies With Payments Linked to Environmental Performance
National Grid Reports First Week of Electricity Generation Without Fossil Fuels
United Kingdom Financial Regulator Introduces Tougher Capital Rules for Cryptocurrency Exchanges
Belfast Harbour Expands Operations to Attract Investment Through United Kingdom and European Union Market Access
Scottish Government Threatens Legal Challenge Over Westminster Cuts to North Sea Transition Funding
United Kingdom Accelerates Trans-Pennine High-Speed Rail Project Linking Northern Cities
United Kingdom Secures Ten Billion Pound Investment for Cambridge Quantum Computing Campus
Port Talbot Steelworks Wins Support for Green Hydrogen Transition and Protection of Industrial Jobs
United Kingdom Sends Royal Navy Carrier Strike Group to Indo-Pacific as Regional Security Focus Expands
National Health Service Expands Artificial Intelligence Diagnostics Across England to Reduce Screening Backlogs
United Kingdom Launches Fifty Billion Pound Infrastructure Fund to Accelerate Housing and Construction
UK Medical Chiefs Update Health Guidance to Promote Everyday Physical Activity
Office of Communications Keeps Wikipedia Under Review Under UK Online Safety Rules
UK Defence Ministry Expands Deep-Strike Capability Through Precision Missile Programme
Russell Group Universities Warn Funding Cuts Could Damage NHS Workforce Training
UK Parliament Calls for National Emergency Broadcast as Heatwave Conditions Intensify
UK and Netherlands Strengthen Naval Cooperation With New Amphibious Defence Partnership
UK Defence Ministry Joins International Missile Programme With One Hundred and Ninety Million Pound Investment
Bank of England Warns Middle East Conflict and AI Risks Could Pressure UK Economy
UK Government Introduces New Rules to Limit Foreign Influence in Political Donations
UK and France Prepare Naval Mission to Protect Shipping Through Strait of Hormuz
United States Pressures UK to Increase Defence Spending at NATO Summit
Bank of England Warns Artificial Intelligence Investment Boom Could Create Financial Stability Risks
Bank of England Begins Direct Oversight of Critical Technology Providers Supporting UK Finance
Andy Burnham Set to Become UK Prime Minister After Labour Leadership Race Clears Path to Downing Street
Scottish Fishing Industry Calls for Emergency Support Amid Rising Costs
UK Supports Stronger European Response to Russian Actions in Ukraine
Devon and Cornwall Police Release Suspect in Ann Widdecombe Murder Investigation
×