1/ Pleased that the government finally appear to be listening mode 👇as to what will work (addressing root cause of the "doctors tax" as they call it - AA & LTA) rather than what wont work (massivley complex flexibility)
Some thoughts, please read & RT
2/ First things first - the obvious point. Whilst both taxes (AA & LTA) important, AA is significantly more of an issue than the LTA (& also has complexity of tapering). But lets take them in turn
3/ Weve been hearing for a while that government know the LTA is a problem for higher earner in the NHS. @BorisJohnson hinted that he will "fix it" in 2019
4/ Far from fixing it, combined effect of freezing it, & then unexpected high inflation now due to Ukraine conflict & energy etc, the LTA has tumbled fast.
It was £1.8m in 2011 which would be £2.2m in real terms today, so the "rumours" of a rise closer to this level are welcome
5/ But as I said certainly eyeing "doctors tax", the AA is significantly more of a problem
And its also dropped *much* more from a peak of £255,000 in 2010/11 (and thats without correcting for inflation, nor the addition of tapering).
6/ With bumpy pay scales / promotonal pay increases etc, the reported level of £60,000, whilst a good step in right direction, will still causes problem - so why restore the LTA to near its peak, but AA to only a fraction of it?
7/ On tapering, I couldnt agree more with @PJTheEconomist's comment on the "ridiculous" tpaering rules "If you increase AA from £40k to £60k, but then taper it so people with high incomes cant use it, its probably not going to be massively effective".
I agree. Taper = car crash
8/ So I would strongly agree that the taper needs addressing too, either scrapping it entirely, or at least restoring or improving the prior minimum (£10k) and index linking that to get the highest (& often most senior / productive) back to the NHS
9/ Which brings me to another crucial point. INDEXATION.
A large component of #retention is lack of indexation. You cant have a CARE scheme on one hand (causing ever increasing PIAs) & then frozen allowances on another. Whatever AA/LTA is raised to, NEEDS indexing to maintain
10/ Penultimately, raising AA & LTA does not remove the hideous unfairness of negative PIAs. If you want to measure growth *really* above inflation, ignoring negative growth doesnt achieve that. Grateful gvmnt fixed CPI disconnect, but you *must* #FixNegativePIAs as well 👇
11/ Finally, don't give with one hand & take away with another to replicate problems elsewhere. Significant changes to tax free lump sums, or huge hikes in state pension ages (when mortality improvements slowing massivley) would take away a lot of the benefit
12/ So @Jeremy_Hunt has opportunity to address pension taxation issues that have cause so many problems. Would strongly urge
🔼LTA to where it was
⏫AA = bigger problem, so dont restore to a much lower level than prior peak
⚠️Dont ignore tapering
⚠️Index
⚠️FixNegativePIAs
RT!
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2/ You'll notice when ministers are in the media, they often talk about how hard "your viewers/listeners" have been hit by inflation. But what we need to do is separate fact from fiction (aka LIES), it was 👇excellent @jburnmurdoch @FT chart that really showed this well last year
@jburnmurdoch @FT 3/ But its not just government ministers gaslighting NHS workers that they have no right for their pay to keep up (like everyone else's), it was also so-called "independent" DDRB👇
Apparently doctors & dentists should not be protected when "its not taking place in other groups"
1/ *VERY* concerned about the quality & type of information coming to @BMA_Pensions members to allow them to make choices in regards to McCloud.
For members who chose to move to 2008 (so called "choice 2", we saw the first of this information last week - deep dive 🧵
Pls RT
2/ OK first of all, lets rewind. Pre 2008 we were all in the 1995 section. For most members that had a fixed retirement age of 60, and gave us "80ths" of final salary. Work 40 years, get 40/80ths or 1/2 of your final salary. Simple. Back in the day contributions were 5% or 6%
3/ As we all started to live longer, government felt this was unnafordable as we were spending longer in retirement. So they introduced the 2008 scheme
- 1/60th not 1/80ths
- Retire at 65 not 60
- So called "Reckonable" pay - based on best of 3yr in last 10, inflation adjusted
1/ NEW: Consultation response out & confirmaiton of rates 1st April '24 , dropping the 13.5% tier.
Grateful government listened to concerns about feezing the top tier so tiers WILL uplift with CPI, not creating (another) "fiscal drag" for higher earners
2/ This repesents a change from previously announced where tiers were to be uplifts of AFC awards (largest employee group). I had suggested a "double lock" of greater of CPI or announced awards, which was supported by the scheme board, but sadly rejected by government
3/ @BMA_Pensions again raised concerns that the @nhs_pensions has a higher contribution rate than many public sector schemes, and has the steepest structure.
We continue believe it should be much flatter, or flat, in a CARE scheme will all paying the same for the same £1 pension
1/ NEW & BREAKING: @instituteforgov supported in analysis by @CIPFA issue an UPDATED pay erosion chart for NHS workers including @TheBMA doctors & @theRCN nurses👇
WHY is this so relevant: This now includes pay data released in '24 to Sept '23 INCLUDING 6/12 of 23/24 pay awads
- pay erosion in NHS from austerity
- uses CPI preferred by gvmnt & some economists
- crucially shows 6/12 effect of DDRB 23/24- starting basis for all pay deals (i.e. not a lot)
@RobLaurensonD4P @_VivekTrivedi @TheBMA @BMA_Consultants @BMA_JuniorDocs @Doctors_Vote 3/ So this chart uses the latest available data (released in 2024) includes the latest pay deals
Despite this @BMA_JuniorDocs down a STAGGERING 25.0% in real terms
REMEMBER: This is using CPI, not RPI, which would produce a higher figure (RPI includes mortgage interest etc)
1/ *Deeply* worrying from @RishiSunak @10DowningStreet on @bbclaurak
Watch the clip in full 👇and pick out the blatant untruths - its so unbelievable they went unchallenged Laura K?
Apparently "The government has now reached resolution with every other part of the NHS. ....
2/ "Nurses, midwives, paramedics, consultant doctors, specialty doctors most recently. "
"So EVERY other part of the NHS workforce, and I'm grateful to them for everything they're doing, has reached a resolution with the government on a reasonable, fair pay settlement. "
3/ According to our PM
"The only people that haven't are the junior doctors."
How can this go unchallanged?
To be clear @BMA_Consultants (nor @BMA_SAS) have *NOT* "reached a resolution with government on a "reasonable, fair pay settlement"
1/ NEW & IMPORTANT: So we need to talk about NHS pay. NEW shocking [post DDRB] data just in 4/1/24 👇 (SPOILER: Not "fair & reasonable")
We need to fix pay/retention to fix waiting lists- increasingly clear next GE will won/lost on NHS
Please read whole 🧵 & share widely/RT
2/ You'll notice when ministers are in the media, they often talk about how hard "your viewers/listeners" have been hit by inflation. But what we need to do is separate fact from fiction (aka LIES), and it was 👇chart from excellent @jburnmurdoch @FT that really showed this well
@jburnmurdoch @FT 3/ But its not just government ministers gaslighting NHS workers that they have no right for their pay to keep up (like everyone else's), its also the so-called "independent" DDRB👇
Apparently doctors & dentists should not be protected when "its not taking place in other groups"