Pension Access Rules: Impact on Terminally Ill

Baroness Finlay of Llandaff Excerpts

Tuesday 30th June 2026 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Baroness for her support for what I said. As she said, unlike a personal workplace pension, which can potentially be drawn down earlier, a state pension can be accessed only at the state pension age, and there are no current plans to change this. However, for those nearing the end of their life, special benefit rules apply. These enable people who are nearing the end of their life to get faster and easier access to certain benefits without needing to attend a medical assessment and, in most cases, enable them to receive the highest rate of benefit. These rules apply to five benefits that support people with health conditions or disabilities: personal independence payment; disability living allowance; attendance allowance; universal credit; and employment and support allowance.

[Baroness Finlay of Llandaff (CB)]

The Government’s review is much to be welcomed, because of the disparity. Given that 33% of working-age people with children who are terminally ill are recognised as dying in poverty, will the Government also look at the ability of people who withdraw their private pension to access a full range of benefits, including universal credit, so that they are not jeopardised and we do not end up with a situation where people who are trying to invest in their long-term future are penalised for doing so?

[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.