Department Of Health
A total of 160 responses were received. The department is grateful for the responses received, which have helped test the proposals and provided valuable insight.
The department intends to take the next step and implement phase 2 from 1 April 2024. This will conclude the 2021 review of member contributions and complete the move to the new tiers and rates. Relevant contribution tier thresholds will be uplifted annually on 1 April by the rate of increase in the consumer prices index from the previous September. The department will then apply a better of test and further increase the thresholds in line with the Agenda for Change (England) pay award as necessary.
The department will proceed with proposals to remove pension abatement for staff who claimed their pension early using historic special class rights and subsequently return to NHS work. This abatement rule has been suspended to support delivery of NHS services and will now be withdrawn permanently.
The consultation asked for views on the potential future removal of the first contribution tier in light of developments in tax policy. The tier will not be removed at this time, and the department confirms its intention to work with the Scheme Advisory Board to consider and monitor the arrangements that HMRC is putting in place to administer the top-up payments.