Budget 2020: pension changes mean most doctors won’t be penalised for extra work

Most doctors will no longer be unfairly out of pocket for doing extra work, after the government pledged to increase the threshold income at which clinicians’ tax-free pension allowance is tapered.

The threshold income is being raised from £110 000 (€125 000; $140 000) to £200 000—a move announced on 11 March as part of the government’s new budget.1 The chancellor, Rishi Sunak, unveiled various financial changes designed to help the NHS in the long and short term, including a £5bn covid-19 response fund to help the health service deal with the outbreak.2

Regarding the change to pension arrangements, Sunak said, “To support the delivery of public services, particularly in the NHS, the two tapered annual allowance thresholds will each be raised by £90 000. This means that …