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Welsh minister criticises UK government over NHS pension measure


A decision by the UK government to cover the pension tax bills of senior doctors in England was “totally unacceptable” and had left the devolved Welsh executive with “no option” but to offer the same, according to the health minister for Wales.

Vaughan Gething said on Thursday that his Labour-dominated government “fundamentally” disagreed with a National Health Service scheme to reimburse doctors in England paying pension tax bills this financial year.

The scheme was announced by Matt Hancock, the Conservative UK health secretary, in November to prevent a staffing crisis from deteriorating over winter as doctors turned down extra shifts over fears of high tax bills.

It was only to apply to senior NHS doctors in England, but the Welsh government later decided to extend the offer to its medics.

“We were left with no option but to also consider putting in place the same temporary solution,” said Mr Gething, in a letter to Mr Hancock, which he made public on his Twitter account on Thursday.

“The position that the Welsh government found itself in before Christmas was totally unacceptable. The tax issue should be resolved by the Treasury, not left to the health budgets of each of the four UK governments to absorb.”

CARDIFF, UNITED KINGDOM - FEBRUARY 01: Cabinet Secretary for Health and Social Services in the Welsh Assembly Vaughan Gething AM on February 1, 2017 in Cardiff, United Kingdom. Vaughan Gething is a Welsh Labour AM who has represented the constituency of Cardiff South and Penarth since the National Assembly for Wales election of 2011. (Photo by Matthew Horwood/Getty Images)
Vaughan Gething said the measure was ‘opportunistic’ because it was announced during the general election without any discussion with devolved national governments © Matthew Horwood/Getty Images

In the letter, Mr Gething described the measure as a “sticking plaster” which gave the impression of being “opportunistic” because it was announced during the general election “without notice and discussion” with devolved national governments. Scotland and Northern Ireland have not implemented the scheme.

The unprecedented intervention by the UK government came as NHS patients around the UK faced delayed or cancelled operations partly because consultants refused to take on extra shifts over fears the extra income could trigger six-figure pension tax charges.

The Department for Health has for more than a year attempted to ease a staffing crisis in the NHS exacerbated by 2016 tax changes which put doctors with annual incomes of more than £110,000 at risk of having their annual pension allowance tapered from £40,000 to £10,000.

Mr Gething said that from April to December last year, Welsh health boards reported that 3,200 sessions were lost, which affected almost 27,000 patients, including those in hospital.

“The harm being done to the NHS across the UK by this issue is undeniable,” Mr Gething wrote. “It is important that a sustainable and transparent solution is found.”

The Treasury is reviewing the impact of the tapered annual allowance on the NHS with ministers pledging to make an announcement on the issue in the Budget on March 11.

The Department for Health did not immediately respond to a request for comment.



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