A public petition is calling for a major overhaul of inheritance rules for the State Pension, urging the government to allow people to pass on their pension to children, long-term partners, and dependents.
Current Rules Exclude Many Dependents
The petition, hosted on the official Parliament website, directly addresses the Labour government and the Department for Work and Pensions (DWP). It highlights a significant gap in the current system where State Pension benefits can only be inherited by a spouse or civil partner.
This means unmarried cohabiting partners, adult children, and other financially dependent individuals are excluded from receiving any of the State Pension after a loved one's death. The petition argues this fails many modern families, including those where a parent supports an adult child with disabilities or where someone is cared for by a person other than a spouse.
Proposal for a Nomination System
The petition creator proposes a new, more flexible system. They ask the government to change the rules so individuals can nominate a beneficiary, such as a child, long-term partner, or carer. Alternatively, they suggest allowing a lump sum to be offered to dependents.
"We believe in having a system that recognises real-world relationships and dependency," the petition states. "Allowing people to nominate a beneficiary... could help protect vulnerable loved ones from financial hardship after bereavement."
For the petition to progress, it must gather 10,000 signatures to secure an official government response. If it reaches 100,000 signatures, the issue will be considered for debate in Parliament.
Contrast with Private Pensions and Tax Changes
The campaign shines a light on the stark difference between State and private pension inheritance. Money remaining in a private pension pot can often be passed on after death, and in some cases, it may even be inherited tax-free, depending on individual circumstances.
Experts from Martin Lewis's MoneySavingExpert team note that while pension inheritance rules are complex, pensions are currently rarely subject to Inheritance Tax. However, they caution that this is set to change. "This is set to change in the 2027/28 tax year, from when more pensions will be hit by inheritance tax," they advise.
They also explain that whether income tax is due on an inherited pension depends on the beneficiary's own tax status, meaning it can sometimes be passed on completely tax-free.
The petition, created on 18 January 2026, puts pressure on ministers to modernise a system that many feel no longer reflects the diverse nature of British families and their financial dependencies.
