DWP announces pensioner assistance

The Department for Work and Pensions (DWP) has said it is to provide assistance for pensioners in the form of benefits from the Financial Assistance Scheme (FAS).

Payments will be made with a special priority to terminally ill people who have lost their pensions due to the collapse of their company, the pensions reform minister, Stephen Timms, has announced.

Early payments are also to be given to people who reach 65 before their pension scheme has come to a close.

Stephen Timms said: "We have always said that the aim of the Financial Assistance Scheme is to get money out as quickly as possible to those who need it most, and today's regulations will put those words into action.

"The ability to make early payments to qualifying members who are terminally ill and those reaching 65 before their scheme has completed winding up, will provide vital help to people suffering the worst difficulties."

The FAS, which holds £400 million in funding, is a new body arising from the Pensions Act 2004, which aims to help people whose pension schemes are underfunded.