DWP to change definition of terminal illness

Move will bring benefit and pension tax rules at end of life into closer alignment

clock • 2 min read

The government will change the definition of terminal illness used for pension tax purposes in a bid to make it easier for people at the end of their life to access their pension savings.

The Department for Work and Pensions (DWP) said the change will see a shift from a requirement for medical evidence that an individual is expected to live for less than one year, to the slightly more flexible test that death can reasonably be expected within 12 months. It said this brings pension tax rules more closely into line with the 12-month end-of-life definition already used by the DWP. The DWP said that, under current rules, it can be easier for someone with a terminal illness to access their benefits than it is to access their own pension savings – adding that these changes w...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Regulation

DWP to change definition to terminal illness

DWP to change definition to terminal illness

Move will bring benefit and pension tax rules at end of life into closer alignment

Jonathan Stapleton
clock 16 October 2026 • 2 min read
CII names Debbie Mitchell as president

CII names Debbie Mitchell as president

Mandy Hunt takes over as deputy president

Sophia Panayi
clock 15 October 2026 • 2 min read
NHS waiting list hits 2026 high

NHS waiting list hits 2026 high

7.37m awaiting treatment

Cameron Roberts
clock 08 October 2026 • 1 min read