Thread by @goldstone_tony

1/ There's no doubt whatsoever that the changes announced in #Budget2023 will significantly help #NHSpensiontaxcrisis @JosephineCumbo

Many have contacted me since last week to say they are changing plans

Would make 3 points

(i) The media focus is on LTA but changes made to AA

https://twitter.com/JosephineCumbo/status/1638066284762939393

2/ in the level has increased, and also a partial fix to #FixNegativePIAs and also minor changes to the taper. All of these will help doctors not reduce hours & avoid extras

(ii) The media focus is also on retirements only, but capacity in the NHS is also about how much work one

3/ can do *before* retirement. Changes to AA & LTA will help reverse the trend to reduce hours where people were being stung unfairly by both taxes. This element of 🔼hours much more likely to make a big long lasting impact

4/

(iii) We have never needed two taxes (AA & LTA) both ostensibly doing the same thing - limiting tax relief. Ive said that for many years (though personally would have slightly different changes), as have @OTS_UK & others. The other element people ignore in this debate is

5/ unlike in DC pensions, and even elsewhere in public sector, tax relief is stripped away by very steep tiering beween high:low earners in NHS - so effecitvely 3 mechanisms reduced/removed tax relief

All in all very positive budget will have massive impact on #waitinglists

6/ BUT would add 3 things

(i) AA will need to increase with inflation, or will revert to same mess as previously
(ii) taper is still an issue for highest earners & will limit their work
(iii) uncertainty over potential future govmnts may do wont help in absence of detailed plans