NHS pay rise means doctors will work fewer hours due to ‘tax trap’, Labour warned

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NHS pay rise means doctors will work fewer hours due to ‘tax trap’, Labour warned
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BMA tells i some doctors are in a situation where they are 'paying to work', and that some consultants will end up going part-time or rejecting extra hours as a result

some doctors are in a situation where they are 'paying to work', and that some consultants will end up going part-time or rejecting extra hours as a resultwill be hit by a “pincer movement” of various tax traps after their 6 per cent pay rise, with experts warning it could damage theLast week, the Government announced it would accept in full the recommendations of independent pay review bodies, which recommended a 6 per cent increase to salary scales, pay ranges and pay elements of...

A third problem could see some higher earning doctors – those whose earnings are over £260,000 – hit by a tax charge for paying into their pensions, but how much this will cost them is likely to be unclear initially, because of the complex way NHS pensions work.that some doctors are in a situation where they are “paying to work”, and that some consultants will end up going part-time or rejecting extra hours as a result.

“Any consultant with young children is incentivised to take steps, such as reducing their hours, to increase their disposable income. A review of the sensibility of these tax traps seems timely, as their current implementation disincentivises essential workers from increasing their workload during a crucial period for the healthcare system,” he added.

The third issue, with the annual allowance, affects higher earners, and therefore is likely to be more of an issue for the most experienced NHS staff, including those with senior management responsibility.

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