Many
people simply do not know that there are benefits available for wives, husbands
and civil partners when their spouse dies. And sometimes bereaved people are not
given the information they need to claim it. The benefits are not means-tested
and are paid for by the National Insurance contributions of the person who has
died. They also have to be claimed within strict time limits. So it is very
important to find out about them and claim as soon as possible. If you leave it
too late they may be lost forever. These benefits are not given to people who
have lived as a couple without being married or in a registered civil
partnership.
Bereavement Payment
is a one off grant of £2000 to the spouse or civil partner of the person who
died. It is tax-free and does not affect entitlement to any means-tested
benefits. It normally has to be claimed within twelve months of the death. The
person who has died must have paid full National Insurance contributions in at
least one year of their working life. Almost everyone will fulfil that
condition.
But
there is another condition which means many older widows (I use the word to
include widowers and bereaved civil partners) are not entitled to the payment.
It is not paid if the bereaved person is over pension age AND the person who
died is getting a retirement pension. So people in older couples may not
qualify. However, it is paid to people widowed over pension age whose spouse did
not claim retirement pension before their death. That includes a spouse over
pension age who was deferring their claim.
Bereavement Payment has to be claimed within twelve months of the death.
However, since 30 October 2008 people who get the state pension do not have to
claim the payment. It should be paid automatically after the death is reported.
And between 24 September 2007 and 30 October 2008 there was no need for a claim
to be made by anyone over pension age. So if you were bereaved and di not get
the payment it may still be possible to claim it. But you will only be eligible
if your spouse was not claiming retirement pension when they died.
Bereavement Allowance
Any widow aged 45 to pension age when their spouse dies may be able to get a
bereavement allowance paid for 52 weeks. The allowance depends on the widow’s
age when their spouse dies.
Bereavement allowance – paid for 52 weeks |
|
Age at death of spouse |
Weekly amount 2009/2010 |
Under 45 |
No benefit paid |
45 |
£28.58 |
46 |
£35.24 |
47 |
£41.91 |
48 |
£48.58 |
49 |
£55.25 |
50 |
£61.91 |
51 |
£68.58 |
52 |
£75.25 |
53 |
£81.92 |
54 |
£88.58 |
55 to state pension age |
£95.25 |
The
allowance is not means-tested but is taxable. It only lasts for 52 weeks. For
women widowed before 9 April 2001 a similar benefit called widow’s allowance
lasted until they reached pension age. Some women widowed at that time still get
this allowance.
Widowed
Parent’s Allowance
If you
have a dependent child under 19 and you are under state pension age you may
qualify for Widowed Parent’s Allowance. It is £95.25 a week and in addition
there may be an earnings-related element based on your late spouse’s earnings.
Extra amounts for children were abolished for new claims made since April 2003.
Instead you continue to claim for child tax credits. If your income is less
since your spouse’s death tax credits may go up. So make sure you let the Tax
Credits office know of your changed circumstances.
If your
late partner had not paid full National Insurance contributions for most of
their working life before their death then your widowed parent’s allowance may
be reduced.
Conditions
Bereavement allowance and widowed parent’s allowance have to be claimed and can
only be backdated up to three months. If you claim later than three months then
you will lose the allowance for the earlier weeks. Both allowances may be
reduced if the deceased had not paid full National Insurance contributions for
most of their working life before their death.
These
benefits are for widows. People who were divorced or whose civil partnership was
dissolved at the time of death will not be entitled. If after your spouse’s
death you live with someone else as if you were married then bereavement
allowance and widowed parent’s allowance will stop for as long as you do that.
Claiming
You can
download the claim pack for all bereavement benefits here
www.dwp.gov.uk/advisers/claimforms/bb1_print.pdf or get one from your local
Jobcentre Plus. In either case the completed form has to be taken or sent to the
local Jobcentre Plus. Always keep a copy of the form and any documents enclosed
with it. You will need either the death certificate or an interim death
certificate issued by a coroner if your spouse’s death was the result of an
accident or there is an inquest for any reason. Many coroners do not give out
information on claiming bereavement benefits. That can lead to people not
claiming them.
Inheriting state pension
A spouse
or civil partner may be able to inherit some of their late spouse’s state
pension. That applies whether either or both of them are above or below pension
age at the time of the death. However, until April 2010 the rules for widows are
different from those for widowers and bereaved civil partners of either sex.
A widow
who has not paid enough national insurance to get a full pension can use her
late husband’s contributions to increase her pension. In addition she can
inherit half her late husband’s graduated retirement pension (paid on earnings
between 1961 and 1975). If her late husband was over pension age when he died
but had deferred claiming his state pension, then she can get the increase in
his basic state pension he earned by deferring the claim. She can also get some
or all of the extra he earned on his graduated and earnings-related pension.
Alternatively she can choose to take the pension increases as a lump sum. In
addition a widow can inherit between 50% and 100% of the additional earnings
related state pension – called SERPS or State Second Pension. If she is under
state pension age when her husband dies she loses all these rights if she
remarries before reaching pension age – but not if she cohabits. So it is safer
to defer remarriage until after that age.
From
April 2010 all these rules will apply equally to male widowers and to bereaved
civil partners of either sex. For deaths that occur before 6 April 2010 the
rules about using contributions and inheriting graduated pension and extra
pension are more restrictive for them. Though can inherit SERPS and State Second
Pension before that date subject to the remarriage rules
State pension age
Men reach pension age at 65
and women at 60. However, from 6 April 2010 the pension age for women will
begin to increase. It will reach 65 for women from 6 April 2020. State
pension age will increase further for men and women, starting in 2024 and
reaching 68 by 2046. Check your pension age at
www.thepensionservice.gov.uk/state-pension/age-calculator.asp