Later political career: MP for East Carmarthenshire, 1885-1890
Following his defeat, Pugh withdrew from active political life for some years, but served as High Sheriff of Carmarthenshire in 1874.
In later years, Pugh's political views became more radical, and in 1884 he presided at a great demonstration, attended by hundreds of agricultural labourers, in Carmarthen in favour of franchise reform. By 1885 he fully supported disestablishment of the Church of England in Wales. Following the boundary changes introduced as a result of the 1884 Reform Act, the Carmarthenshire parliamentary constituency was divided into eastern and western divisions. The sitting Liberal member, W.R.H. Powell chose to contest the Western division against the other sitting member, Lord Emlyn.
However, the Eastern division which contained industrial settlements emerging as a result of the anthracite coal-mining and tinplate industries was considered to be the strongest for the Liberals, as a result of the increased numbers of working-class voters in these communities. For example, the number of voters in that part of the parish of Llanelli that was outside the borough constituency rose from 615 to 1,500, Similarly, the electorate in Pembrey increased from 377 to 1,000, in Hendy from 190 to 620, in Brynamman from 175 to 450, and in Cwmamman from 164 to 550. Nearing eighty years of age, Pugh emerged as a contender for the Liberal nomination and addressed the inaugural meeting of the new Liberal association at Ammanford alongside Lewis Morris and John Lloyd Morgan. Some weeks later, the first gathering of the Council of the new Liberal Association saw Pugh unanimously selected as candidate. He was elected with a large majority over Sir Marteine Lloyd of Bronwydd.
Pugh supported Gladstone's Irish Home Rule Bill and was re-elected unopposed when a further general election was held in 1886.
Within two years, however, there was increasing criticism within the Liberal Association of Pugh's conduct as member, and particularly his absence from what were perceived to be important divisions in the Commons. He made no recorded contributions to Commons debates during his post-1885 Commons service. It was claimed in January 1888 that, apart from a short speech when re-elected in 1886, he had made no political speeches in the constituency since his election. Following the annual meeting of the Liberal Association at Ammanford on 23 May 1888, when these criticisms were aired by younger members of the Association, a special meeting was called on 30 June to consider the representation of the division. A number of alternative candidates were suggested for the next election and the Rev. Towyn Jones declared that any future candidate should be a radical and a nonconformist. His attendance at the Commons again led to criticism at the annual meeting the following year. In June 1890, Pugh announced that he would not be seeking re-election. He died soon afterwards.
Pugh never married. He died at the Metropole Hotel in London, aged 84. He left the bulk of his estate to his kinsman, John Beynon of Trewern, Pembrokeshire.