Pension Access Rules: Impact on Terminally Ill

Lord Davies of Brixton Excerpts

Tuesday 30th June 2026 Lords Chamber

[Lord Livermore (Lab)]

Yes, I think I can; I think that is broadly along the lines of what I covered in my previous answer—that those who are nearing the end of their life should be able to get faster and easier access to certain benefits. As the noble Baroness is asking, those benefits include support for people with health conditions or disabilities: personal independence payment; disability living allowance; attendance allowance; universal credit; and employment and support allowance.

[Lord Davies of Brixton (Lab)]

I very much welcome the response from my noble friend the Minister. It is of particular importance that the variation in the schemes’ practice is part of the review, and obviously a full consultation will be required. When people provided with a pension have been encouraged to think of it as a pot of money, does my noble friend agree that it is particularly important that, at times of great personal difficulty, they have the opportunity to realise what they have been told is theirs?

[Lord Livermore (Lab)]

Yes, I agree with my noble friend, and I am grateful to him for what he says about the review. As he says, individual private pension schemes have their own requirements for terminally ill people to access their pension savings. That does mean that, too often, individuals experience too many varying hurdles to access, depending on their scheme. The Government will examine the access options across these schemes and consider what changes may be needed to ensure people have appropriate access. To be clear, it is tax-free below the age of 75, up to a total sum of £1.073 million.