Proposed increase in NHS pension scheme contribution rate for employers

Responding to the proposed increase in the NHS pension contribution rate for employers, announced yesterday by the Department of Health and Social Care, Andrew Pow, representing the Association of Independent Specialist Medical Accountants, said: “The current rate for employer contributions is 14.38%. An increase to 20.6% will represent an additional £4,665 for GP partners with pensionable earnings of £75,000, £6,220 for those earning £100,000 and an additional £7,775 for GPs with pensionable earnings of £125,000, as well as increased costs in employing staff. This will have a severe impact on practice finances unless additional funding is available. To make it even worse, individual higher earning GPs in the 2015 pension scheme could also see an increase in their annual allowance tax charge.”

A consultation was announced  on18 December 2018, and can be seen on the at: www.gov.uk/dhsc(under ‘our consultations’). It will run until Monday 28 January.

Further reporting by GPonline.com and Pulsetoday.co.uk