Doctors’ pensions: Labour would abolish cap, says Wes Streeting
This might seem a strange and tangential story to feature but it is an example of a crucial issue which underpins the real shortage of skilled staff in rural NHS setting. It tells us:
Wes Streeting, the shadow health and social care secretary, has said Labour would abolish the cap on doctors’ pensions which he believes would reduce waiting lists “and will inevitably save lives”.
The MP for Ilford North claimed the “crazy” cap deters many experienced doctors from working late into their careers.
He told the Telegraph: “I’m not pretending that doing away with the cap is a particularly progressive move. But it is one that sees patients seen faster, and will inevitably save lives. I’m just being hard-headed and pragmatic about this.”
The lifetime pension allowance, which was frozen last year at just over £1m until 2026, is the amount that any individual can save into a pension tax-free.
A second cap applies to the amount accumulated in a pension without incurring tax.
Under current rules doctors are unable to opt out of paying into their NHS pensions even if they have reached the cap, resulting in some high-earners taking early retirement.