House of Commons · Westminster Hall
02 May 2023 · 3 other contributors · 6,077 words
Opened by Dave Doogan SNP Angus and Perthshire Glens
Responding minister: Laura Trott
Summarised by AI from the official record, so it can contain mistakes.
Dave Doogan raised concerns about terminal illness: early access to pensions in Westminster Hall. A government minister responded.
Key points
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.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
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.
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.
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.
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 TrottThe 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.