Pensions (Special Rules for End of Life) Bill

Vicky Foxcroft Excerpts

2nd reading
Friday 2nd February 2024 Commons Chamber

[Vicky Foxcroft (Lewisham, Deptford) (Lab)]

I congratulate the hon. Member for Tewkesbury (Mr Robertson) on bringing the Pensions (Special Rules for End of Life) Bill before the House today for its Second Reading. The Bill seeks to expand the eligibility criteria for receiving terminal illness payments from the Pension Protection Fund and the Financial Assistance Scheme to all those with less than 12 months to live, an increase from the existing six months. That will bring eligibility in line with the Department for Work and Pensions’ own definition of terminal illness for the purposes of social security payments.

The shock and distress caused by a terminal diagnosis for the individual and their loved ones cannot be overstated. Those with a terminal illness should have the dignity of spending the time they have left in comfort; their stress should not be further compounded by financial worries. Therefore, we wholeheartedly agree with the aims of the Bill. It will, of course, only benefit a relatively small number of people: it relates only to those who have a defined benefit pension that is being assessed by the Pension Protection Fund or the Financial Assistance Scheme. However, it is a step in the right direction, and I hope we can build on it to improve things for all those living with a terminal illness, because at the moment, the reality is truly shocking.

I pay tribute to the Marie Curie charity for all the work it has done to highlight the financial struggles of the terminally ill. Research carried out by that charity in 2022 painted a harrowing picture: 90,000 people die in poverty in the UK every year, one in four people who die while of working age are in poverty at the end of their life, and one in six UK adults would be wholly reliant on benefits if they became terminally ill. The cost of living crisis has worsened since those figures were published, so I fear that the situation is more severe now.

As I say, the DWP’s definition of a terminal illness for the purposes of social security rules is now set at

“less than 12 months to live”,

having been increased from six months by the Social Security (Special Rules for End of Life) Act 2022. We supported that legislation as it was the right thing to do, it and should provide some small reassurance to those in the most difficult circumstances. I question why the DWP did not look this issue at the time of the change. While the issues do differ—that legislation related to benefit payments, while this Bill relates to workplace pensions—it is important to have consistency, so that those with a terminal illness have clarity on their entitlements. With that in mind, I hope the Minister can offer some reassurance that the definition of a terminal illness will be consistent across the DWP and its various agencies if this Bill makes it on to the statute book.

The Conservative cost of living crisis continues to hit families hard. This Government’s reckless decisions crushed the economy, sent mortgage rates soaring and sent energy bills through the roof. Receiving a terminal diagnosis is incredibly difficult at any time, but too many people are spending the time they have left in poverty. That cannot be right. The Government must do far more to help these people.

I conclude by once again congratulating the hon. Member for Tewkesbury on his dedication in bringing forward this important Bill. It is a step in the right direction, and we fully support its aims.