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<p>Pensions tax relief is one of the most expensive reliefs in the personal tax system.
In 2020/21 Income Tax and employer National Insurance Contributions relief cost £67.3
billion. The annual and lifetime allowances help to ensure that the highest earning
pension savers do not receive a disproportionate benefit. 99 per cent of pension savers
make annual contributions below £40,000, the level of standard annual allowance, while
91 per cent of individuals currently approaching retirement have a pension below the
lifetime allowance.</p><p> </p><p>The Government 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. On 22 September, the
Government announced it will change elements of the NHS Pension Scheme to help retain
doctors, nurses and other senior NHS staff, to increase capacity. These changes include:</p><p>
</p><ul><li>Changing pension rules regarding inflation</li><li>Encouraging NHS Trusts
to explore local solutions for senior clinicians affected by pension tax charges,
such as pension recycling</li><li>Implementing permanent retirement flexibilities
and extending existing temporary measures to allow our most experienced staff to return
to service or stay in service longer.</li></ul><p> </p><p>At Autumn Statement 2022,
the Chancellor announced the Government will introduce measures to support and grow
the NHS workforce and improve performance across the health system. To support this
the government committed to publishing a comprehensive NHS workforce strategy, including
independently verified workforce forecasts, next year.</p>
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