← Back to Westminster Hall Debates
Terminal Illness: Early Access to Pensions
02 May 2023
Lead MP
Dave Doogan
Angus and Perthshire Glens
SNP
Responding Minister
Laura Trott
Tags
TaxationBenefits & Welfare
Word Count: 6077
Other Contributors: 3
At a Glance
Dave Doogan raised concerns about terminal illness: early access to pensions in Westminster Hall. A government minister responded.
Key Requests to Government:
The UK Government should consider permitting terminally ill people to access their state pension regardless of age, which could lift over 8,600 people out of poverty annually at an estimated cost of £144 million per year, representing only 0.1% of the annual state pension bill.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
More than a quarter of people who die before retirement age spend their final days in poverty, with some Angus constituents facing financial difficulties due to terminal illness. Constituents like Ian Bain are unable to access their state pension despite having paid national insurance contributions for over 35 years and being terminally ill. The costs of terminal illnesses can reach up to £16,000 a year, exacerbating financial strain.
Drew Hendry
SNP
Inverness Nairn Highland Caithness
The hon. Member supports the idea of allowing early access to pensions for terminally ill individuals and their families, highlighting the financial strain caused by terminal illness and the importance of respecting these individuals' dignity. Asked if there is any opportunity for adjusting the entitlement age for those who are terminally ill, similar to other countries' policies. My hon. Friend Drew Hendry points out that other countries like Australia and Canada allow early access to state pensions, arguing that compassion is missing in the UK situation regarding private pensions.
Margaret Ferrier
SNP
Rutherglen and Hamilton West
People with terminal illnesses are being denied early access to their pensions by firms like Legal & General because they may live longer than expected, which punishes them for defying their life expectancy. Margaret Ferrier argues that individuals should be given the dignity of accessing their own pension early. Terminal illness puts an emotional, mental and financial strain on individuals and their families. More than four in five families living with advanced cancer face income losses as a result.
Matt Rodda
Lab
Reading Central
I expressed gratitude for the debate on early access to pensions and highlighted concerns about errors in the benefits system. I discussed the importance of occupational pension savings being accessible at end-of-life stages and raised issues with state pension early access, asking the Minister to provide evidence and research backing the Government's position.
Government Response
Laura Trott
Government Response
The Government remain committed to ensuring citizens live with dignity and respect, emphasizing that the state pension is a contributory social benefit. Early access to a state pension for terminally ill individuals is inappropriate due to the nature of the national insurance system being pay-as-you-go rather than accumulating individual pots. Changes have been made to special rules allowing faster financial support six months earlier for those nearing end-of-life, welcoming these changes from key charities and parliamentarians. The value of a state pension based on contribution records creates complexities if accessed early. Private pensions offer more flexibility for early access due to ill health under defined benefit schemes or medical evidence of expected survival less than one year.
▸
Assessment & feedback
Summary accuracy
About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.