Bereavement can affect household income, existing benefit claims, tax and pensions, and people in Scotland may also qualify for help with funeral costs. Online guidance brings together several payments that may be available after the death of a partner, spouse, civil partner, parent or child, including Bereavement Support Payment and Guardian's Allowance, while those in Scotland on a low income may also qualify for Funeral Support Payment.
How a death affects existing claims
A death can also affect benefits a household already receives and, in some circumstances, the surviving person will need to make a new claim for support previously paid in their partner's name. There are time limits attached to some bereavement benefits, and MYGOV.SCOT advises people to start checking what support they may be entitled to as soon as possible.
Bereavement Support Payment and Funeral Support Payment
Bereavement Support Payment may be available following the death of a husband, wife or civil partner. The benefit is generally aimed at people under State Pension age, and eligibility depends on circumstances including the deceased person's National Insurance record. There are time limits for claiming, and how quickly someone applies can affect the number of payments they receive. A full list of payment rates can be found on GOV.UK.
People living in Scotland who are on a low income may be able to get Funeral Support Payment to help towards the costs of a funeral. This is the Scottish support to use rather than the Funeral Expenses Payment listed on the main GOV.UK bereavement page. Funeral Support Payment can help towards eligible funeral costs, but there are rules covering who can apply and their relationship to the person who died. A full list of payment rates can be found on MYGOV.SCOT.
Guardian's Allowance and Child Benefit
Someone bringing up a child whose parents have died may be able to claim Guardian's Allowance. In certain circumstances, it may also be available where one of the child's parents is still alive. Guardian's Allowance is separate from Child Benefit and may be available in addition to it. The Guardian Allowance rate is £22.95 a week per child.
A bereavement can also affect an existing Child Benefit claim. Scottish Government guidance says someone will need to make a new Child Benefit claim if they were not the person named as the claimant on the original application. GOV.UK also provides specific guidance covering Child Benefit following the death of a child or parent.
Universal Credit, tax and pensions
A change in household circumstances following a death could affect someone's entitlement to Universal Credit and other benefits. MYGOV.SCOT warns that people may have to make new applications for some benefits and payments previously claimed by their husband, wife or civil partner on behalf of the family. A death could also change the amount someone receives from existing claims, so people are advised to contact the organisations responsible for paying their benefits. People whose income has fallen following a bereavement can use a benefits calculator to check whether they may now qualify for additional financial support.
Bereavement can also change someone's tax and pension position. A surviving spouse or civil partner could potentially receive additional pension payments based on their late partner's pension or National Insurance contributions. Changes to income can also affect the amount of tax someone needs to pay. For example, additional income from pensions, annuities, benefits or an inheritance could increase a person's tax liability, while a fall in income could mean they pay less. GOV.UK provides separate guidance covering what can happen to benefits, tax and pensions following the death of a partner.
Parental Bereavement Pay and reporting a death
The GOV.UK bereavement support hub also lists Statutory Parental Bereavement Pay and Leave among the support potentially available following a death. This provides eligible employed parents with rights following the death of a child. There is also specific financial support in Scotland following the death or stillbirth of a baby. MYGOV.SCOT states that the Pregnancy and Baby Payment element of Best Start Grant can still be paid where a baby was stillborn or died after birth. Someone applying following a stillbirth or death can apply up to six months after the baby's birth date.
People should also report a death to government organisations that were paying benefits to the person who died. The Tell Us Once service allows a death to be reported to most government organisations in one go, rather than requiring the family to contact each separately. A registrar will explain the service when a death is registered. Where Tell Us Once cannot be used, organisations can be contacted individually.
People whose financial circumstances change following a bereavement can use an independent benefits calculator to check what they may now be entitled to. The GOV.UK bereavement hub also directs people towards additional help including support visits for those who need assistance making a benefit claim. In Scotland, free money and debt advice is also available through the Money Talk Team, which can help people check benefit entitlement, deal with debt and identify ways to reduce household costs.
