Pension tax hikes will kill Starmer's neighbourhood health service

"A malaise has been setting in amongst doctors over the last few years - we've heard firsthand how dissatisfaction over pay, hours, workload, and abuse from patients has been pushing many to consider throwing in the towel and taking early retirement. Given so many are already teetering on the edge of this decision, hiking pension tax could easily be the final push many have been waiting for."

"The resulting loss of doctors would come at a pivotal moment for Starmer's new neighbourhood health service initiative - a key component of his 10-year plan for the NHS. It will require hundreds of doctors, but Collin warns the Chancellor's potential pension tax hikes would only push them away, dealing Starmer's plans a "knock-out blow." That would mean the loss of potentially hundreds of NHS doctors - a loss that couldn't come at a worse time."

Pension lump-sum withdrawals climbed 61% amid fears of a cut to the tax-free allowance this November. Early retirements among NHS doctors rose 9.3% year-on-year from 2008 to 2023. Increased pension taxation or a reduced tax-free lump sum would likely encourage more doctors to retire early. Widespread early departures could amount to potentially hundreds of lost doctors. The loss would coincide with rollout of the first 43 neighbourhood health service areas and would jeopardize a 10-year plan that requires hundreds of clinicians. Dissatisfaction over pay, hours, workload, and abuse from patients contributes to the existing malaise driving retirements.

Read at London Business News | Londonlovesbusiness.com