Managing money with a terminal illness

Lots of people have money worries when they are near the end of their life.

You may be:

• struggling to pay bills on time
• unable to cover essentials like food and heating
• building up debt you can't repay
• finding it difficult to cover travel to appointments
• need help with managing and making decisions about everyday money

This might be because you have had to start working less or have given up work completely. Family members may also be working less to look after you.

Energy bills can also go up when you're unwell. This is because you may need to keep your home warmer than before. Running medical equipment can also be expensive. See our information on keeping safe and warm with a terminal illness.

If you are experiencing any of the above, you are not alone. You can get support to help you manage your money while living with a terminal illness.

If your illness has meant a change in how much income you have, or what you spend, this is a good time to review your budget. Having a budget can help you feel more in control and help you find ways to make savings.  It can also help to work out how to pay back money you have borrowed, like credit cards, loans or your mortgage.

Making a budget might feel difficult at first. It can be stressful and upsetting as well as hard to understand. But it is an important first step.

For more information about making a budget visit:

• StepChange: Making a budget
• Money Helper: Budget Planner

If you are working, your employer can (and should) help you to decide what your illness means for your working life and your ability to earn money.

See Marie Curie’s information on Work and terminal illness.

If an illness has changed how much you or your family are working, you may be able to claim new or different benefits.

For example:

• If you are state pension age or older, you may be able to claim something called Attendance Allowance.
• Anyone who is caring for you may also be entitled to claim a Carer's Allowance.
• You might also be able to get Pension Credit, Housing Benefit or a Council Tax Reduction.

Use one of the benefits calculators below to see what you or others might be able to claim.

• Turn2Us: Benefits calculator
• Citizens Advice: Benefits calculator

The Government also has information about benefits for people near the end of their life.

• Government website: Get benefits if you're nearing the end of life.

If your healthcare team thinks you might have 12 months or less left to live, you can apply for benefits through a process called ‘Special Rules’.

If your claim is accepted, you may be able to:

• claim a higher rate of benefits
• claim some benefits faster
• avoid having medical assessments conducted by benefits staff

Your claim will only be reviewed if you live for three years.

You will need a medical professional, like your GP, hospital doctor or a registered nurse to fill in the form.

For more information on how to apply, see the Government website.

Many people choose to speak to an adviser, as knowing what benefits you can claim and how to apply can be complicated.

• Citizens Advice (England and Wales)
• Citizens Advice Scotland (Scotland)
• Advice NI (Northern Ireland)

Turn2Us have information on benefits and terminal illness which you may also find helpful.

Being diagnosed with an illness can mean you’re able to apply for one-off payments and grants.

• Find out what you're eligible for by using Turn2Us Grant Search.
• Local councils might offer help with some essential costs like energy and water bills, food, clothes or appliances. They are usually called "welfare assistance" or "household support". Find for your local council to see what they offer.
• Find grants to help with energy bills on our Keeping safe and warm with a terminal illness page.

If you have a workplace pension from your current or past employer, you may be able to start withdrawing from it, even if you’ve not reached retirement age.

Some pensions have insurance policies linked to them, such as critical illness cover. Check if this is the case for you, as you may want to make a claim against this before withdrawing your pension, which might mean this is no longer possible.

Pensions are complicated and it’s important to get guidance and financial advice before making any decisions.

MoneyHelper are a government organisation that offers financial information and guidance:

They offer:

• online information on Ill-health retirement: early medical retirement
• free phone appointments with specialists (under a scheme called ‘Pension Wise’)
• a directory of trusted financial advisers

It may also be possible to access other types of long-term savings early, such as any Lifetime ISAs.

As well as policies that are linked to your pension you might have insurance policies linked to your mortgage or as part of your employment benefits. These will be called something like “critical illness cover” or “income protection”.

We know that in stressful times, these sorts of things can be forgotten about or missed. Sometimes if we’re looking after someone else’s money, we might not know about them. But they can be very important sources of income so are worth looking for.

A big worry for many people at the end of their lives is the cost of care.

The NHS has lots of guidance around the different options, including palliative and end-of-life care provided by charities like Sue Ryder.

Towards the end of your life, you may not want to spend lots of time finding ways to make small everyday savings.  But there may be further support available for costs associated with your illness such as prescriptions or travel.

• NHS: Check what help you could get to pay for NHS costs.

It is not unusual for people to feel they need to borrow money or use credit cards when they are experiencing health problems. This might be because their income has gone down, or costs related to your health have gone up.

Borrowing is also part of everyday life for most people, for example car loans or a mortgage. But when you are dealing with an illness, paying back these loans might become harder.

If you are struggling, it is a good idea to first speak to the organisation that you owe money too. This might feel like a difficult thing to do. You may not want to talk about your illness to a stranger. Or you may feel embarrassed about not being able to pay.

But you deserve kindness and support. And energy suppliers and lenders must, by law, give support to people in vulnerable circumstances, including if you are unwell or at the end of your life. You may be put in touch with a specialist team and be offered different options.

Not being able to work, rising costs and unexpected life changes related to illness mean some people near the end of their life struggle with debts that can start to feel unmanageable. Many people feel trapped by debt. But depending on your situation, you may be able to:

• Agree smaller repayments with your lenders
• Create a single, regular consolidated payment, instead of lots of smaller ones
• Pay less of your debt back because of your illness
• Get a 60 day break from interest, fees or court action while you get debt advice

There are organisations that can help you do this for free. You do not need to pay for debt advice.

• StepChange offer online information and advice or you can speak to an adviser on the phone: 0800 138 1111
• MoneyHelper can help you search for a free debt adviser

Lots of people are anxious about their debt they have being passed onto family or friends after they die.

When someone dies, any money they have borrowed will be paid out of their ‘estate’. This is all the money available from things like bank accounts, savings and pensions, or from the sale of anything you own.

Any money that cannot be paid by the estate will usually be written-off, so no one will have to pay it.

There are some cases where the person managing the estate or relatives will be asked to pay back debt.

• MoneyHelper: What happens to debts when someone dies?

If you’d like to speak to someone in person or on the phone about money worries, get in touch with one of these organisations.

• Citizens Advice – Online and in-person advice on debt, work, benefits, housing, family and more.
• Money Helper – Phone, webchat and online information provided by the Money and Pensions Service, funded by the Government.
• National Energy Action – Energy advice and support helpline and online information.
• Shelter – Emergency helpline, online housing information and webchat for advice on homelessness and housing.
• Step Change – Free debt helpline, webchat and online advice.
• Turn2Us – Advice on the phone or online, for people who are struggling financially.