25.10.11
Pension increases a ‘tax’ on NHS staff
Proposals to increase NHS pension contributions have been met with criticism from health professionals, with some organisations threatening that a lack of negotiation with unions could lead to strikes.
The consultation on pensions, which launched in July, has now ended. It follows Government plans to save £2.8bn per year by 2014/15 by increasing public service employee contributions by 3.2% on average.
The Department of Health states that proposals for increasing rates in 2013/14 and 2014/15 will be the subject of further discussion with trade unions.
But the British Medical Association (BMA) and the Royal College of Midwives (RCM) argue that it could increase midwife shortages and cost the taxpayer more in the long run. They oppose the proposals to impose a later retirement age from 2015, as well as the pension contributions increasing by up to 6% over the next three years.
Dr Hamish Meldrum, chairman of the BMA Council, said: “We acknowledge the financial difficulties that the Government is facing but it is totally unreasonable to expect NHS staff, who are already subject to pay freezes and potential redundancies, to take a further, substantial hit. This arbitrary proposal from the government is simply an ill-concealed tax on those working in the NHS.
“Thousands of doctors have already made the Government aware of the strength of feeling among the profession by responding directly to the consultation. While industrial action will always be a last resort it remains an option for the BMA to take.”
Jon Skewes, Director of Employment Relations and Development at the RCM, said: “We are currently in negotiations about NHS pensions and the proposed increase in contributions should be part of that process, not outside of it.
“NHS workers are putting more money into their scheme than they take out. This is why the NHS pension scheme has over £2bn sitting in it. This is all about the Government making midwives and other NHS staff pay off the huge deficit caused by some of the reckless elements of the banking sector.
“To ask public sector workers to pay more for their pensions when the contributions will not go to fund their pension but pay off national debts is not only dishonest but it is actually a tax on public sector workers.
“We would welcome and expect negotiation and discussion, but we will oppose dictats by the Government on NHS pensions.”
Tell us what you think – have your say below, or email us directly at [email protected]