Key Facts

• The current legislation defines terminal illness as having a life expectancy of six months.
• The Bill seeks to increase this definition to twelve months for the Pension Protection Fund and Financial Assistance Scheme.
• The Social Security (Special Rules for End of Life) Act 2022 extended the terminal illness definition to twelve months for certain benefits.
• The Bill amends the Pension Protection Fund and the financial assistance scheme.
• Subsections (1) and (2) of clause 1 change the period of life expectancy from six months to twelve months for terminal illness compensation.
• Officials are working with Northern Ireland's devolved legislature on aligning their legislation.
• The Bill amends definitions of terminal illness in pension schemes from six months to twelve months.
• Clause 1(3) and (4) apply similar provisions to Northern Ireland under specific Orders and Acts.
• Subsections (4) and (5) of clause 2 relate to commencement, with the Secretary of State for Work and Pensions determining the date of implementation for England, Wales, and Scotland, while Northern Ireland follows a separate protocol.
• Some realignment in support systems is intended to simplify processes for individuals at end-of-life.
• Previous changes were made a few years ago through various pieces of legislation, some via regulations and others through primary legislation.
• The Pensions Regulator and similar organisations may need to address certain issues related to the bill.
• The Bill extends the definition of terminal illness for compensation payments from six months to twelve months.
• Trustees may make serious ill health lump sum payments according to scheme rules in most cases.
• Decisions will be made by healthcare professionals who have direct oversight of the individual's condition.
• The Department engaged with key medical organisations and charities before implementing the changes.
• A learning module for clinicians was launched in February 2023.
• The statement commends Frank Field's work in the Department for Work and Pensions.
• The Bill builds on changes made back in 2022.
• Siobhain McDonagh expresses condolences to Frank Field's family and friends.