Terminal Illness: Early Access to Pensions

Matt Rodda Excerpts

Tuesday 2nd May 2023 Westminster Hall

[Matt Rodda (Reading East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Sharma. I thank the hon. Member for Angus (Dave Doogan) and colleagues from across the House who have contributed to this important debate. I hope the Government will take this issue seriously and find ways to improve the lives of people with a terminal illness.

I am pleased that legislation was passed last year to support people with a terminal illness in having fast-track access to benefits. I hope that we can develop a consensus on other matters, including the related issue we are discussing today, but I would sound a note of caution following on from the debate last September on the Social Security (Special Rules for End of Life) Act 2022, where the House worked together to allow people in the last years of life to receive increased benefits. One of the challenges raised at the time was whether the Government were able to deliver on their promises, given the series of failures over the last decade. I hope that the Minister will ensure that DWP runs smoothly and that the errors we have seen in some aspects of the pensions and benefits system will be addressed, so that the people in that greatest need are protected. I ask the Minister to reassure Members that the Department will be able to provide individual pension savers and people in need with the level of service they would expect.

On the substance of the debate—early access to pensions—I want to cover two aspects in my speech: the issue of occupational pensions, and then the issue of access to the state pension, which the hon. Member for Angus mentioned. Occupational pensions play a very important role in allowing constituents to save for their retirement, and it is only right that people who have saved all their lives and contributed to the system should be able to access the money that they have saved. I understand that people with less than a year to live are already able to withdraw their entire pension in some cases, and a substantial amount in other cases, and even those who are younger may be able to take advantage of that facility through the pension freedoms that are normally available at the age of 55. I ask the Minister to reassure Members about her work with the pensions industry to develop this further, so that we can have a further discussion and perhaps gain further understanding of the possible ways to support people. Given that a great deal of many constituents’ income in retirement does not come from money that is saved through occupational pensions, it is very important that the money that people have saved is available to them at their time of need.

On the state pension, I want to put on the record my thanks to Marie Curie and other campaign groups for raising this issue. It is very important that we listen to the voices of those campaigners, and I am grateful to the hon. Member for Angus for securing the debate so that we can discuss them. I understand that the Government’s current position is not to allow early access to the state pension. I would be very grateful if the Minister confirmed that that and set out the evidence on which the decision is based. I am sure that the Department will have explored the issue in detail, and I ask her to consider publishing some of the research carried out by the Department on this matter, so that we can understand it better and have a fuller debate in future.

I want to take this opportunity to raise some other points that have been made by campaigners. I am worried by some of the research that outlines the scale of the problem that energy bills can cause those facing the awful diagnosis of terminal illness, and I am grateful to the hon. Member for Angus for mentioning that point. For example, research by Marie Curie explains that after a terminal illness diagnosis, energy bills may rise by as much as 75%. I think I heard the hon. Member refer to some of the additional medical needs, the need for greater home heating and sometimes the need for expensive equipment, such as oxygen tanks, in a person’s home. It is very important that we understand that, take it into account and see the wider needs of somebody facing an awful diagnosis and suffering a terrible challenge.

There is a lot of independent research on the consequences of living in damp, under-heated properties, which we should also bear in mind when we consider this issue. For example, the World Health Organisation estimates that about 30% of excess winter deaths are directly attributable to living in cold, damp environments, and we have to take that point into account, as well as the additional cost of heating for medical reasons and of paying for additional energy to support machinery. That is why it is really important that we take steps to reduce energy bills in a sustainable and long-term way. As the official Opposition, we are calling for energy bills to be cut for good, which should obviously start with a proper windfall tax on oil and gas giants, continuing with our long-term mission to make Britain a clean energy superpower by 2030.

Campaigners have highlighted other financial and family impacts of having a terminal illness diagnosis, and one difficult challenge faced by some families is that other forms of support may not be available to them. For example, access to paid childcare may diminish as a result of not being able to work, although a family may still need it.  I would like the Government—I hope the Minister will address this in her speech—to look at not only reforming the childcare system in broad terms but addressing the specific issue faced by those who have a family member with a terminal illness diagnosis. They should look at the need for childcare at that difficult time and at the unintended consequences of some aspects of Government policy. There is a need for wider reform because, sadly, families, children’s education and our economy are paying the price for our current childcare system.

To conclude, I hope the Government will respond and continue to work with the pensions industry. I look forward to the Minister answering my questions about her work with the industry, confirming Government policy on the state pension and committing to publish suitably informative material about the research carried out by the Department.