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Press comment:Gov to consult on NHS pension reform

03/06/2019

If you are covering the Interim NHS People Plan* and the consultation on new pension flexibility for senior clinicians, please see the following commentary from Quilter pensions expert, Ian Browne:

Ian Browne“It is very hard to see how this situation can be resolved quickly and easily. The truth is that pension legislation should never have been allowed to become so complex that it has put crucial public services under staffing pressures. We are now seeing government legislating after the event for a problem that is harming healthcare services today. It seems very unlikely that this issue will be resolved swiftly and we expect to see months of consultation on the matter.

“The annual allowance taper is far too complex and that is why we have seen it backfire so badly. The disastrous unintended consequences of the policy are the product of legislation designed without a full appreciation for the practical consequences of its application.

“So while this consultation is welcome recognition that there is a problem, it really should be a job for the Treasury to revise its pension tax policy, rather than the Department of Health and Social Care to adapt around the annual allowance taper.”  

 

*Interim NHS People Plan: ‘…During discussions to develop the interim People Plan we heard concerns from senior clinical staff that their current pensions taxation arrangements were discouraging them from doing extra work for patients and causing them to think hard about remaining in the NHS Pension Scheme or continuing to work in the NHS. The government is listening to these concerns and will bring forward a consultation on a new pension flexibility for senior clinicians. The proposal would give senior clinicians the option to halve the rate at which their NHS pension grows in exchange for halving their contributions to the scheme. We will work with the government to seek changes that encourage individuals to stay within the NHS and ensure the right incentives are in place for them to maximise their contribution to patient care…’

For more information contact

Michael Glenister020 7778 963807469 144535michael.glenister@quilterinvestors.com

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £114.9 billion in investments (as at 31 March 2019).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

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Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

The Quilter plc businesses are being re-branded as follows: 

  • Quilter Financial Planning (previously Intrinsic)
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  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

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