Jeremy Hunt has admitted it is “impossible” to know how many doctors will stay working in the NHS as a result of his tax break for the rich.
The chancellor used his Budget on Wednesday to abolish the cap - currently set at £1 million - on the amount of money people can put into their pensions before it is taxed.
He also increased the annual tax-free allowance on pensions from £40,000 to £60,000.
Hunt said the move was designed to stop doctors leaving the health service. But the tax cut applies to all high earners, not just doctors.
Speaking to BBC Radio 4′s Today programme, Hunt said it was “impossible to know the exact number” that would choose to stay.
“What would have an impact on ordinary families up and down the country? It is Getting their NHS operation done,” he said. “This is the simplest and quickest way to resolve that issue.”
He added: “We do know that we have a shortage of doctors and we know we have a very big backlog, and that is why we’ve decided this is a very important measure to get the NHS working.”
Labour has said it would reverse the policy as it was a “one billion pound pensions bung for the one per cent”.
Shadow chancellor Rachel Reeves said this morning instead she would introduce a targeted pension scheme for doctors rather than create a “free-for-all for the wealthy few”.
Hunt’s plan has also been savaged by economists. Torsten Bell, the chief executive of the Resolution Foundation thank tank said the “more you think about this policy the worse it is”.
He said the tax giveaway could see some workers choosing to retire early, or using their now uncapped pensions savings to avoid inheritance tax.
“Rich people now have no overall limit on how much can be put into their pension pots tax free which, because of another big policy mistake, can be passed onto their heirs with absolutely zero inheritance tax,” he said.