Government administers temporary pain relief to NHS pension crisis – comment from Tilney

19 November 2019

It has been announced that doctors will temporarily have their pensions tax bills paid by the NHS in order to avoid understaffing during the notoriously busy Winter period. Under the proposal, tax bills caused by overtime can be paid out of staff pensions with the NHS committing to top up their pots at a later date.

Commenting on the news, Gary Smith, chartered financial planner at Tilney, says: “This is a very welcome development, which provides a temporary solution to what is rapidly becoming a national crisis. Unfortunately, it is not providing a long term solution and this measure is simply kicking the can down the road to next year. There is also the danger that this will lead to calls for similar treatment from other senior public sector workers.

“Whichever government we get next month needs to address the issue of NHS pensions as a matter of urgency. There is not a simple solution to this problem and the ideas currently being consulted on won’t address this issue fully. Unless the tapering of the annual allowance is scrapped, and the final salary link on previous versions of the scheme are removed, I don’t see this issue being solved. I would therefore call on all political parties to make their position on the tapered allowance and how they intend to address this very clear in their upcoming manifestos.”

About Tilney

Tilney is a leading investment and financial planning group that builds on a heritage of more than 180 years.  Our clients are private investors, charities and professional intermediaries who trust us with over £23 billion of their assets. We offer a range of services including financial planning, investment management and advice and, through our Bestinvest service, a leading online platform for those who prefer to manage their own investments.

We have won numerous awards. Tilney has been awarded Best Conventional Advisory Service at the 2018 City of London Wealth Management Awards, Best Advisory Service in the 2015 City of London Wealth Management Awards; Investment Award – Cautious category in the Private Asset Management Awards; and Stockbroker of the Year, Execution-only Stockbroker of the Year and Self-select ISA Provider of the Year 2015, as voted by readers of the Financial Times and Investors Chronicle. Bestinvest was voted Best SIPP Provider and Best Fund Platform at the 2017 City of London Wealth Management Awards, Best Direct SIPP Provider at the Awards 2017, Best Stocks & Shares ISA Provider at the 2017 Shares Awards, as well as Best Self Select ISA Provider, Best Online/Execution-only Stockbroker and Best Investment Platform 2017 at the FT and Investors Chronicle Investment and Wealth Management Awards, as voted by readers of the FT and Investors Chronicle.

Headquartered in Mayfair, London, the Tilney Group employs over 1,000 staff across our network of 30 offices, enabling us to support clients with a local service throughout the UK.