The Treasury and the Department of Health and Social Care are “currently in discussions” on pension issues surrounding the National Health Service (NHS).

In an answer to a written question, Stephen Hammond MP said that the government keeps the impact of its pay and pensions policies “under constant review”.

The issues arose after it was revealed that a quarter of a million NHS workers had opted out of their pension schemes in the last three years, due to it being financially beneficial for some to give up their pensions and some higher earners reaching their tax relief limits.

As a result, the NHS is helping doctors avoid large tax bills by paying their contributions in cash, rather than directly into their retirement funds.

Hammond described the NHS scheme as a “generous benefit” for NHS staff and “one of the best schemes available”.

He continued: “The government recognises that NHS doctors have raised concerns about pension tax charges being a factor in their decisions to retire early or limit their NHS commitments.”

In April, the British Medical Association (BMA) criticised the government for not listening to its proposals to address the “perfect pensions storm” that is facing the NHS.

Furthermore, doctors are reportedly intending to sure the government over the pension scheme, which they see as discriminatory, with the BMA offering its support.

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