Pensions (Special Rules for End of Life) Bill

Nickie Aiken Excerpts

Report stage
Friday 17th May 2024 Commons Chamber

[Nickie Aiken (Cities of London and Westminster) (Con)]

I wish to begin also by thanking the hon. Member for Tewkesbury (Mr Robertson) for introducing this important Bill. It is a pleasure to speak on Third Reading.

Pensions offer individuals peace of mind, knowing that they have a dependable source of income after years of dedicated hard work. As well as alleviating the stress of financial uncertainty in old age, pensions allow retirees to retain their standard of living during retirement. I welcome the Bill as it seeks to provide the same opportunity for financial security for those with a terminal illness, and thus offers a more dignified end of life experience in what I can only imagine is an unstable and devastating time for the individual and their families.

The Bill seeks to extend the definition of terminal illness for the PPF and the FAS to 12 months, rather than the current six, to allow those who are eligible to receive vital financial support. I welcome the fact that the Bill will bring the PPF and the FAS in line with the NHS and Department for Work and Pensions definition of terminal illness, which is 12 months. Indeed, thanks to the brilliant work of our NHS and the consistent progress in medical science, it is difficult to predict how long someone is likely to live. In some cases, patients are able to outlive their initial prognosis. That is why the Bill is so important.

It is also due to our NHS and medical advancements that more and more of us are reaching pensionable age. As we all know, many developed nations are now facing an ageing population as birth rates decline. Therefore, the amount of British people accessing their pensions at any one time will steadily increase. In fact, pensioners represent 18.6% of the population, and 12.5% of my constituency is 65 and over. The Government have done so much to support pensioners. We heard in the autumn statement that the Government announced an 8.5% increase in the state pension, in line with the Government’s initiative: the triple lock. As a result, the new state pension is now worth up to £900 more a year and ensures that older people get the support they deserve.

Those nearing the end of their life deserve to have access to the same level of financial support. It is thanks to the compassionate Government that people with terminal illnesses are able to get faster and easier access to certain benefits through the special benefit rules for end of life. Recent changes mean that special rules now apply to people who have 12 months or less to live, rather than six. Those who are eligible are able to claim universal credit, employment and support allowance, personal independence payment, disability living allowance, and attendance allowance. The Bill will simply align the PPF and the FAS with those existing provisions, reflecting the Government’s commitment thus far to aiding those nearing the end of their lives. The Government have also provided necessary cost of living support worth over £1.4 billion. The support includes two rounds of means-tested cost of living payments, disability cost of living payments and pensioner cost of living payments.

We have all heard from our constituents the anxiety felt over the cost of living crisis, with rising prices that were caused by the pandemic and Putin’s weaponisation of energy due to his illegal invasion of Ukraine. Imagine now how the situation would worsen for individuals facing a terminal illness: the cost of heating their home, travelling to medical appointments, and potential childcare costs as their life is turned upside down.

Marie Curie, the charity that does tremendous work in this area, has published an eye-opening report, “Dying in Poverty”, which reveals that on average a pensioner’s energy bill doubles once they are diagnosed with a terminal illness. I find that incredible and very, very worrying. The report also highlights that people of working age who die are twice as likely to spend their final years of life in poverty, compared with people of pensionable age. That poignant reality demonstrates the crucial need for Bills like this one by enabling individuals in these unfortunate circumstances to access their pensions early. The Bill addresses the crisis outlined by charities such as Marie Curie and aims to restore dignity to those affected.

I also pay tribute to amazing charities registered in the Cities of London and Westminster that support those nearing the end of their life: Compassion in Dying, a national charity that provides advice and information to those at the end of life; the Sunseeker London Charitable Trust, which provides financial support to organisations dedicated to the care of terminally ill people; and the Bennett Kleinwort Charitable Trust, which provides care and treatment for terminally ill people. The work of these charities plays a crucial role in advancing progress towards addressing the challenges faced by terminally ill individuals, which is also the objective of the Bill.

Once again, I express my support for this Bill. I understand that the hope is that it will encourage pension providers that do not currently have provision for serious ill health payments for those with a life expectancy of 12 months or less to consider putting it in place. Although the Bill may be narrow in scope, I am confident that it is a necessity and will have a wider positive impact. Any one of us can be diagnosed with a terminal illness, and it is important that there are provisions in place to offer financial assistance. I commend my hon. Friend the Member for Tewkesbury for bringing forward this admirable Bill.