A record number of pension benefits were awarded to NHS staff in April of this year, a Freedom of Information (FOI) request by Quilter has revealed, indicating there may have been a “significant jump” in retirements.

April 2022 saw 8,902 pension awards compared to 6,932 in April 2021, a year-on-year increase of 28 per cent, which could lead to “more pressure on the NHS as it emerges from the pandemic”, Quilter stated.

Whilst there are a number of reasons that someone would be awarded their pension benefits, the most common reason, according to Quilter, is that they are retiring.

Quilter also revealed data that showed an upward trend of pension awards since 2008, which the company said showed a “worrying” trend emerging over the last four months of increasing year-on-year numbers.

The firm added that the number of NHS members being awarded their pension benefits has been steadily increasing this year, with a 3.5 per cent increase between January 2021 and January 2022, a 7.6 per cent increase from February 2021 and February 2022, a 16.3 per cent increase from March 2021 to March 2022 and the 28.4 per cent increase for April.

Quilter indicated that they are specifically concerned that there are “a number of issues” that could lead to even more pressures on the NHS workforce.

One of these issues according to the company is that paying annual allowance charges because of inflation could be the “straw that breaks the camel’s back” for many senior healthcare workers and there could be an upward trend in the number of those members leaving the NHS.

Quilter also warned that the expiry of the Coronavirus Act powers could risk triggering thousands of nurses and doctors to leave the NHS to avoid a financial penalty.

Quilter NHS pension specialist, Graham Crossley, commented: “Although our data does not delve into the specific reasons for the exodus from the NHS, we are hearing that healthcare workers are simply exhausted, feel undervalued and want out of the NHS for a better quality of life.

“It has been said that chronic workforce shortages are seriously undermining efforts to recover from the pandemic. The situation could become significantly worse if the calls to address issues with NHS pensions go unheeded.

“We are already seeing the upward trends in the number of members retiring early or retiring at 60, when once they might have considered continuing to work past their original normal retirement age.

“The whole taxation system needs careful review by both HMRC and the DHSC but, at the very least, there are two issues that can be quickly resolved. The upcoming end of the suspension of abatement rules needs to be extended indefinitely and s235(3) Finance Act 2004 needs to be amended so that annual allowance only measures growth above inflation, as intended. This will help to ensure the NHS can tackle the growing backlog.”

Share Story: