This piece first appeared in Saga Magazine in August 2009
The text here may not be identical to the published text

Alone - and out of pocket

bereavement benefits explained

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

 


All material on these pages is © Paul Lewis 2009