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<p>The Government values the extraordinary work being done by NHS staff. In recognition
of this vital work, the NHS Pension Scheme is one of the most generous schemes available.
In addition, the existing tax relief offered on pension contributions is expensive,
costing the Exchequer £67.3 billion in 2020/21, with around 58 per cent relieved at
the Higher and Additional rates. A tax unregistered scheme would primarily benefit
NHS staff affected by the annual and lifetime allowances, who are the highest-earning
savers in the NHS pension scheme.</p><p> </p><p>The Government has listened carefully
to the concerns of NHS staff and is committed to ensuring that hard-working NHS staff
do not find themselves reducing their work commitments due to the interaction between
their pay, their pension and the relevant tax regime. That is why, on 22 September
the Government announced changes to the NHS Pension Scheme. These include changing
pension rules regarding inflation, encouraging NHS Trusts to offer pension recycling
and implementing permanent retirement flexibilities to support workforce retention.
The Government continues to keep all areas of the tax system under review.</p>
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