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NHS Pension Scheme, government response

9th December 2011

The Department of Health has revealed details of new proposals for NHS pension payments following walk-outs by public sector workers at the end of November.

Pound Coins

It has said that more than 500,000 extra staff will not need to pay any extra into their pensions next year.

Following a consultation, the Department said the threshold for freezing pension contributions will be raised from £15,000 to £26,557 for 2012/13, affecting 630,000 staff in the NHS in total – almost half of all those in the NHS Pension Scheme – in a move to protect the lower paid in the NHS.

The increases in employee contributions have been distributed among higher earners where they will be significantly offset by the benefit of tax relief for higher rate taxpayers.

Health Secretary Andrew Lansley said: “Having listened to staff and stakeholders, we have improved our proposals so that an extra 530,000 NHS staff will not pay any more into their pensions next year.

“Public service pensions will remain among the very best available, providing a guaranteed pension level for all employees.”

Talks continue with trade unions to discuss wider changes to pensions.

Examples of how full-time staff are affected are: A healthcare assistant earning £15,000 a year, would pay no extra for their pension and in 2012-13 would continue to contribute 5%; a nurse earning £25,000 would pay no extra and contribute 6.5%; a scientist earning £30,000 would contribute 8%; a manager earning £60,000 would contribute 8.9%; and a consultant earning £130,000 would contribute 10.9%. In each case employer contribution is 14%.


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Friday 9th December 2011 @ 19:28

I have been hit by all the cuts by this government and am feeling totally screwed over. I work for the NHS so have my pay frozen. I was due to retire in 5.5 years time and have 18 months added to this. I have now to pay more into my pension! I am on my own and have planned my retirement so that I can be independent and NOT claim any benefits...It is surely very depressing....

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Article Information

Title: NHS Pension Scheme, government response
Author: Mark Nicholls
Article Id: 20549
Date Added: 9th Dec 2011


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