Opinion  

'Labour's silence on LTA reintroduction a welcome sign for the NHS'

Vishal Sharma

Vishal Sharma

If they want to meet their pledges on health, it is also vital that they remove the remaining barriers to doctors taking on additional work.

The tapered annual allowance, which limits the amount doctors and other workers can earn before their pensions annual allowance starts to reduce, is leaving many doctors fearful to take on additional shifts. 

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Indeed, prior to 2020, the tapered annual allowance was forcing thousands of doctors to reduce their hours or even go part-time.

Again, following extensive campaigning by the BMA, the point at which tapering started was increased in the March 2020 Budget. However, this threshold has been frozen since then and once again doctors are left with little option but to limit their work.

In the same BMA snap survey last week, 71 per cent said their ability to take on overtime work would be limited or blocked completely if the tapered annual allowance remained unchanged post-election.

It’s clear then that to stop doctors retiring early and allow them to take on extra shifts to make real headway with waiting lists, any future government will need to completely rule out reintroducing the LTA and must also abolish the tapered annual allowance.  

Critics will say that it is not fair to give high earners such as doctors a 'tax break', but these punitive taxes do not make sense from an economic perspective.

If doctors are changing their behaviour because of these taxes by reducing paid work or retiring early, not only do pressures in the NHS increase, but income tax and national insurance receipts reduce.

In addition, it adds to vacancies in the NHS and spending on external locum and agency staff increases.

It makes far more sense to keep doctors in work, contributing to the economy and providing the expert care to patients that they are trained and fully capable of providing for years to come.

Dr Vishal Sharma is pensions committee chair of the British Medical Association