Defined Contribution  

DC scheme proposed to solve doctors’ woes

Tom Selby, senior analyst at AJ Bell, said the government should scrap the taper once and for all.

He said: "It is ludicrous that, at a time when the National Health Service is already under huge strain, the pension tax regime is exacerbating pressures on the system.

"The pension tax taper has always been a horror show of complexity but the fact it is now forcing GPs and consultants to turn down over-time – potentially putting patients’ health at risk – means the Government has been forced into urgent action.

"While introducing flexibility so members can reduce accruals and thus mitigate any tax bills resulting from the annual allowance will help to a degree, it is inevitable many will simply choose not to work the extra shifts rather than jump through hoops which will ultimately lead to a lower pension.

"The Treasury needs to bite the bullet, accept the pension tax taper is simply a bad policy and scrap it altogether."

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