Win! Pension rule changes announced for the terminally ill.

I introduced an amendment to the Pension Schemes Bill that would ensure that terminally ill pensioners are not forced to navigate unnecessary bureaucracy to access their pensions. 

The amendment was co-produced with one of my constituents, Nigel, who was terminally ill at the time and sadly has now passed away. The amendment asked to simplify the way terminally ill people can access pension related funds. Although the amendment did not pass, the minister promised to look at it.

We have now received the welcome news that the Pension Schemes Act 2026 has changed how terminal ill health payments work for PPF and Financial Assistance Scheme members. 

Previously, members needed medical evidence showing they were expected to live for six months or less to receive a terminal ill health payment from us. This has now changed to 12 months, broadly aligning with the Department for Work and Pensions’ social security payment definitions.

The change is intended to allow terminally ill members to access payments earlier and help ease financial worries at a difficult time. PPF members diagnosed with a terminal illness may be able to receive a one-off lump sum, provided they have not previously received compensation from us. FAS members diagnosed with a terminal illness may be able to start receiving assistance payments at any age, with options offered in line with those available at their normal retirement date.

I am so pleased that our campaigning on this has resulted in a change in legislation.

Below is an excerpt from the Amendment paper that shows my amendment in full.