Bereaved families will not face tax bill over pension delays under new rules

Pensions minister Torsten Bell confirmed the rule change in a letter to the chairman of Parliament's Public Accounts Committee, external, Conservative MP Sir Geoffrey Clifton-Brown, who had raised concerns about the issue after it was highlighted by BBC Radio 4's Money Box Live programme.

Bell said the move would "make the position fairer for all grieving families and friends where there are delays in the payment of death benefits, whether in the Civil Service or any other pensions scheme".

He added: "Removing the tax deadline does not remove [a pension scheme's] wider duties to administer schemes prudently and without avoidable delay."