Retired NHS workers on six-figure pensions reaches record high
The number of retired NHS workers picking up six-figure pensions has reached a record high after increasing tenfold in the last decade.
More than 3,000 former health service employees are being paid an annual pension of more than £100,000, up by 64pc compared with a year ago.
Campaigners are now calling on Wes Streeting, the Health Secretary, to overhaul the 'unfunded and gold-plated' NHS pension scheme.
The latest figures from the NHS Business Services Authority (NHSBSA) show the cost of its pensions is now at £12bn per year, with 1.1m former staff qualifying for the retirement payments.
It means there are 47,267 former NHS staff being paid pensions worth more than £50,000 per year, up by 15pc from last year.
Of those, 3,126 are picking up more than £100,000 this year. Last year, the figure stood at 1,909.
A decade ago, the number of former NHS staff with a pension of £50,000 per year or more was just 19,886 and the number getting £100,000 or more was limited to just 285 people.
In the private sector a person would need on average a pension pot of around £3m in order to be able to settle down with an inflation linked six-figure pension income.
Government officials said part of the reason for the rapid rise in the numbers of people with the biggest pensions may be linked to higher inflation.
This is because the pensions are index-linked, meaning the higher the inflation, the more the amount of pension increases the following year.
Higher earning employees within the NHS – typically GPs and consultants – have to contribute 12.5pc of their earnings to be included in the pension scheme.
But for NHS pensions there is no pool of contributions building up over time. The payments are made up from the salary deductions from people currently working in the NHS as well as additional payments to top the scheme up from central government.
Critics of the NHS retirement scheme say its generosity creates a financial time bomb with 2.5m members expecting a pension from it in the future.
John O'Connell, the chief executive of the TaxPayers' Alliance, a campaign group, said: 'There is now an extraordinary elite of NHS retirees who rake in massive pension payments every year, not paid out of retirement pots but instead out of the pockets of working taxpayers.
'That's because NHS employees, like in much of the public sector, get access to gold-plated and unfunded defined benefit schemes which are now almost absent in the private sector.
'As part of his plan to radically reform the NHS Wes Streeting should move all new staff onto fully-funded, defined contribution schemes.'
A Department of Health and Social Care spokesman said: 'The NHS Pension Scheme provides generous retirement benefits for hard-working staff after a lifetime of service, and the scheme was comprehensively reformed in 2015 to ensure the costs are sustainable.
'Staff and employers are required to pay contributions that meet the full cost of the benefits being built up, with higher earners paying proportionately more than other members.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BBC News
39 minutes ago
- BBC News
Swapped at birth: Why dad never looked like his parents
Matthew's dad had brown eyes and black hair. His grandparents had piercing blue was a running joke in his family that "dad looked nothing like his parents", the teacher from southern England turned out there was a very good reason for father had been swapped at birth in hospital nearly 80 years ago. He died late last year before learning the truth of his family - not his real name - contacted the BBC after we reported on the case of Susan, who received compensation from an NHS trust after a home DNA test revealed she had been accidentally switched for another baby in the News is now aware of five cases of babies swapped by mistake in maternity wards from the late 1940s to the say they expect more people to come forward driven by the increase in cheap genetic testing. 'The old joke might be true after all' During the pandemic, Matthew started looking for answers to niggling questions about his family history. He sent off a saliva sample in the post to be genealogy company entered his record into its vast online database, allowing him to view other users whose DNA closely matched his own."Half of the names I'd just never heard of," he says. "I thought, 'That's weird', and called my wife to tell her the old family joke might be true after all."Matthew then asked his dad to submit his own DNA sample, which confirmed he was even more closely related to the same group of mysterious family started exchanging messages with two women who the site suggested were his father's cousins. All were confused about how they could possibly be together, they eventually tracked down birth records from 1946, months after the end of World War documents showed that one day after his father was apparently born, another baby boy had been registered at the same hospital in east boy had the same relatively unusual surname that appeared on the mystery branch of the family tree, a link later confirmed by birth certificates obtained by was a lightbulb moment."I realised straight away what must have happened," he says. "The only explanation that made sense was that both babies got muddled up in hospital."Matthew and the two women managed to construct a brand new family tree based on all of his DNA matches."I love a puzzle and I love understanding the past," he says. "I'm quite obsessive anyway, so I got into trying to reverse engineer what had happened." An era before wristbands Before World War Two, most babies in the UK were born at home, or in nursing homes, attended by midwives and the family started to change as the country prepared for the launch of the NHS in 1948, and very gradually, more babies were delivered in hospital, where newborns were typically removed for periods to be cared for in nurseries."The baby would be taken away between feeds so that the mother could rest, and the baby could be watched by either a nursery nurse or midwife," says Terri Coates, a retired lecturer in midwifery, and former clinical adviser on BBC series Call The Midwife."It may sound paternalistic, but midwives believed they were looking after mums and babies incredibly well."It was common for new mothers to be kept in hospital for between five and seven days, far longer than identify newborns in the nursery, a card would be tied to the end of the cot with the baby's name, mother's name, the date and time of birth, and the baby's weight."Where cots rather than babies were labelled, accidents could easily happen", says Ms Coates, who trained as a nurse herself in the 1970s and a midwife in 1981."If there were two or more members of staff in the nursery feeding babies, for example, a baby could easily be put down in the wrong cot."By 1956, hospital births were becoming more common, and midwifery textbooks were recommending that a "wrist name-tape" or "string of lettered china beads" should be attached directly to the newborn.A decade later, by the mid-1960s, it was rare for babies to be removed from the delivery room without being individually labelled. Stories of babies being accidentally switched in hospital were very rare at the time, though more are now coming to light thanks to the boom in genetic testing and ancestry day after Jan Daly was born at a hospital in north London in 1951, her mother immediately complained that the baby she had been given was not hers."She was really stressed and crying, but the nurses assured her she was wrong and the doctor was called in to try to calm her," Jan staff only backed down when her mum told them she'd had a fast, unassisted delivery, and pointed out the clear forceps marks on the baby's head"I feel for the other mother who had been happily feeding me for two days and then had to give up one baby for another," she says."There was never any apology, it was just 'one of those silly errors', but the trauma affected my mother for a long time." Never finding out Matthew's father, an insurance agent from the Home Counties, was a keen amateur cyclist who spent his life following the local racing lived alone in retirement and over the last decade his health had been deteriorating. Matthew thought long and hard about telling him the truth about his family history but, in the end, decided against it. "I just felt my dad doesn't need this," he says. "He had lived 78 years in a type of ignorance, so it didn't feel right to share it with him."Matthew's father died last year without ever knowing he'd been celebrating his birthday a day early for the past eight then, Matthew has driven to the West Country to meet his dad's genetic first cousin and her daughter for all got on well, he says, sharing old photos and "filling in missing bits of family history".But Matthew has decided not to contact the man his father must have been swapped with as a baby, or his children – in part because they have not taken DNA tests themselves."If you do a test by sending your saliva off, then there's an implicit understanding that you might find something that's a bit of a surprise," Matthew says."Whereas with people who haven't, I'm still not sure if it's the right thing to reach out to them - I just don't think it's right to drop that bombshell."
Daily Record
2 hours ago
- Daily Record
Firm at centre of NHS corruption scandal moves business to new company as directors jailed
Four men were jailed for a total of 29 years following a major investigation into the award of lucrative NHS contracts to Ayrshire-based telecommunications firm, Oricom. The firm at the centre of a £6m NHS corruption scandal is set to move its business to a new company linked to its jailed directors. Four men found guilty following a major investigation into the award of lucrative NHS contracts to an Ayrshire-based telecommunications firm were jailed for a total of 29 years on Thursday. Oricom directors Adam Sharoudi, 41, and Gavin Brown, 48, secured major deals with the illegal help of NHS telecoms chiefs Alan Hush, 68, and 60 year-old Gavin Cox. The probe was first revealed by the Daily Record after an NHS counter fraud team swooped on Oricom's offices in Irvine in 2015. Now a letter to customers from a current Oricom boss has revealed the service is to be managed by a company called Freestyle Communications Limited. Service Delivery Director David Ross said the change, set to take place from June 19, was 'part of a long-term plan to improve how we deliver your service'. Convicted directors Brown and Sharoudi were named on Companies House as having 'significant control' of Freestyle in May 2023, but filed a cessation in August last year. Prosecutors proved, during a mammoth three-month trial, that contracts for the supply and maintenance of telecoms equipment by Oricom broke rules on financial wrongdoing in the tendering process. Hush was jailed for eight years after being found guilty of nine charges. Cox was locked up for six years for the two jurors convicted him of. Sharoudi was also handed an eight year term having been convicted of seven charges. Brown was jailed for seven years for a total of six. Lord Arthurson said: "The reach and character of the corruption and, in particular, the corrupt relationship engaged by all of you was on a grand scale.' Hush was the telecommunications manager at NHS Lothian and then NHS Scotland video conferencing manager. Cox held the post of head of IT and infrastructure at NHS Lanarkshire. The pair abused their powers as 'public servants' to push deals through. One contract alone was worth £3.1m. In return, Hush got £18,231 of cash bungs and gifts, Cox a total of more than £70,000. All four men had denied the charges, spanning between 2010 and 2015, included bribery, corruption, fraud, theft as well as others under the Proceeds of Crime Act. In Oricom's letter to customers, Ross said the firm was 'moving to a dedicated telecoms management company focused solely on service delivery and support'. He said: 'Your contract terms, pricing, and service all remain unchanged. You'll continue to receive uninterrupted service. You'll still have access to the same support team under the new structure. Join the Daily Record WhatsApp community! Get the latest news sent straight to your messages by joining our WhatsApp community today. You'll receive daily updates on breaking news as well as the top headlines across Scotland. No one will be able to see who is signed up and no one can send messages except the Daily Record team. All you have to do is click here if you're on mobile, select 'Join Community' and you're in! If you're on a desktop, simply scan the QR code above with your phone and click 'Join Community'. We also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose 'exit group'. If you're curious, you can read our Privacy Notice. 'Why are we making this change? By moving your account to Freestyle Communications, we're simplifying operations and placing service management in the hands of a team 100% focused on telecoms. 'Freestyle Communications is part of the same group and is fully regulated by Ofcom.' Current directors of Freestyle are named as Ross, Stephanie Brown and Simon Agnew. Brown and Sharoudi resigned as directors of Oricom earlier this month, following their convictions at the High Court in Glasgow. They have also been banned from being a company director for the next 10 years and will face proceeds of crime proceedings. Over 250 witnesses were also interviewed and tens of thousands of text messages and emails reviewed as part of the probe. Gordon Young, Head of NHS Scotland Counter Fraud Services it was a 'landmark conviction' of 'individuals who sought to exploit the NHS for personal gain'. We approached Oricom for comment.
Daily Mail
5 hours ago
- Daily Mail
Starmer goes all in on NHS with PM set to hand health service £30bn spending boost at expense of other public services
Sir Keir Starmer will pump money into the NHS at the expense of other public services. The government is putting all its eggs in one basket as it lines up the Department for Health for a £30billion cash boost at next week's spending review. However, health chiefs have warned the prime minister's promise to 'turbocharge delivery' could lead to difficult compromises elsewhere in services from the police to councils. It comes after the party's unexpected victory in the Hamilton, Larkhall & Stonehouse by-election - though as the threat of Nigel Farage 's Reform UK still looms large. The Department for Health will be handed an increase of around £200billion to its budget by 2028 - a £17billion rise in real terms. Its day-to-day budget is set to increase by 2.8 per cent in real terms annually over the three-year spending review period. Sir Keir has also pledged to have 92 per cent of NHS patients treated within 18 weeks by the next election, a target that has remained unmet for a decade. Currently, under 60 per cent are seen within this time with waiting lists rising to 7.4million last month. There are even fears NHS bosses may not hit an interim goal of 65 per cent next year. Chancellor Rachel Reeves' prioritisation of health has forced cuts in other departments and prompted protestations from other cabinet members like Yvette Cooper, the home secretary and Angela Rayner, the deputy prime minister and housing secretary. Both have warned Ms Reeves the cuts will put some of the government's crime and housing targets at risk amid 'robust negotiations'. But the chancellor has maintained 'not every department will get everything they want'. Overall, the health budget, which stood at £178billion as Labour took office, will exceed £230billion by the next election. The increase means health is set to account for 41 per cent of all day-to-day departmental spending - up from 39 per cent. Ben Zaranko, of the Institute for Fiscal Studies, said Ms Reeves's cash boost was 'a serious, meaningful increase in health funding'. But Matthew Taylor, chief executive of the NHS Confederation, warned the funding increase 'is not going to enable us to achieve recovery and reform' without big changes to the way the health service treats patients. He said the government's plan to withhold the budget for infrastructure simultaneously would also make 'combining recovery and reform' impossible.
