Your Pension Credit benefits may be paid early on the grounds of ill health, if both of the following applies:

  • you meet the ill-health conditions prescribed in the Finance Act 2004
  • you have previously been engaged in regular employment and are now permanently incapable of regular employment because of ill health

To apply for your Pension Credit pension on the grounds of ill health, please complete an AW240(PC) application form, Consideration of Entitlement for Early Payment of Deferred Benefits Due to Ill Health.

If you are terminally ill and do not expect to live longer than a year, you can also apply at retirement to exchange all of your ill-health benefits for a one-off, usually tax-free, lump sum payment. 

if you also have an NHS Pension that you have built up by working for the NHS yourself, you should complete two separate forms: an AW240(PC) to apply for your Pension Credit benefits, and an AW33E for active members or AW240 for deferred members)to apply for your standard NHS pension benefits. It is not possible to apply for both sets of benefits with one application form.

Please see your NHS employer for a copy of the AW33E, and our website for a copy of the AW240.