DHSC consults on NHS Pension Scheme Covid-19 easement extension

The Department of Health and Social Care (DHSC) has launched a consultation on plans to continue the temporary NHS Pension Scheme easements in the Coronavirus Act 2020 until 31 October 2022.

The consultation, which is running for 2 weeks until 1 March 2022, will seek views on continuing the ‘retire and return’ easements introduced amid the onset of the pandemic, via amendments to NHS Pension Scheme regulations.

These easements, which are currently scheduled to end on 24 March 2022, allow retired and partially retired staff to return to work in the NHS or increase their working commitments without having their pension benefits suspended.

Industry experts have previously urged the government to extend the easements, after a freedom of information request from Quilter revealed that over 7,000 NHS staff could be at risk of a pension penalty, prompting concerns of a potential "NHS exodus".

Quilter NHS pensions expert, Graham Crossley, has since welcomed the government consultation, stating that it is "laudable that the DHSC has read and acted on these warnings including our letter to the Health Secretary which cautioned the government that there could be an NHS exodus if the return of abatement is not extended beyond March 2022".

However, Crossley warned that there will be some staff who have already left the NHS in anticipation of there being no change to these rules, suggesting that "it’s a shame it has taken so long to get here".

"Many medical staff will be buoyed by the opportunity to keep helping the NHS at this critical time," he explained.

"However, there are concerns around the 31 October 2022 extension. The existing March deadline caused headaches with work force planning in January and February.

"By moving the deadline to October, it gives doctors and nurses very little sense of security and it risks similar job planning issues in August. But this is no doubt good news for the NHS."

    Share Story:

Recent Stories


A time for fixed income
Francesca Fabrizi discusses fixed income trends and opportunities with Goldman Sachs Asset Management Head of UK Pensions Solutions, Fixed Income Portfolio Management, Henry Hughes, in our Pensions Age video interview

Purposeful run-on
Laura Blows discusses purposeful run-on for DB schemes with Isio director, actuarial and consulting, Matt Brown, in Pensions Age’s latest video interview
Find out more about Purposeful Run On

Keeping on track
In the latest Pensions Age podcast, Sophie Smith talks to Pensions Dashboards Programme (PDP) principal, Chris Curry, about the latest pensions dashboards developments, and the work still needed to stay on track
Building investments in a DC world
In the latest Pensions Age podcast, Sophie Smith talks to USS Investment Management’s head of investment product management, Naomi Clark, about the USS’ DC investments and its journey into private markets

Advertisement