What is the Bereavement Support Payment?
Pension Options Direct Blog
russ.myers@padfs.co.uk
January 29, 2022
What is the Bereavement Support Payment?
What is the Bereavement Support Payment?
Bereavement support payment, formerly known as Widowed Parent’s Allowance, can give you financial reassurance to help cover the costs following the death of a spouse/civil partner. At Pension Options Direct, we understand some of the worries you may be facing. We’re here to provide you with as much access to information to ease this undoubtedly challenging and distressing time.
What is the Bereavement Support Payment?
Am I eligible for the Bereavement Support Payment?
If your spouse died on or after 6th April 2017, you could be eligible for support if you are under the state pension age.
Bereavement Support Payment is dependent on the person’s National Insurance contributions, and will only be considered if they have made contributions for a minimum of 25 weeks in one tax year. Or, if they have died due to a disease or accident caused by their workplace. In this particular instance, proof of National Insurance contributions are not necessary.
Alternatively, if your partner passed away before this date, you could still be entitled to Widowed Parent’s Allowance (find out more details from turn2us).
You cannot apply for bereavement benefits if you are in prison.
What is the Bereavement Support Payment?
How much Bereavement Support Payment will I receive?
There are two rates of Bereavement Support Payment. The first rate is a standard rate and the second is a higher rate. Applicants will be qualified for a higher payment rate if:
- You receive child benefit, or don’t but you are entitled to it
- You are now suddenly entitled to child benefit due to the death of your partner
- You were pregnant when your partner died
A standard rate payment means you will receive a lump sum of £2,500, with ongoing monthly payments of £100 for up to 18 months.
A higher rate payment means you will receive a lump sum of £3,500, with ongoing monthly payments of £350.
All of these payments are tax free, including your initial payment.
What is the Bereavement Support Payment?
How do I apply for the Bereavement Support Payment?
We advise that you make your claim within 3 months of the death of your spouse/civil partner. If you make your claim later than 3 months after you were bereaved; unfortunately you will not be eligible for the full payment sum and you will receive fewer monthly payments.
If you believe you fall into this category then you have a few options. Firstly, you can apply online through the GOV website, providing you have:
- Your national insurance number
- Your husband, wife or civil partners national insurance number
- Your bank or building society details
- The date of your partners’ death
You can also download a Bereavement Support Payment form or order one by contacting your local Jobcentre Plus.
We understand there are no benefits to dealing with the death of a loved one. However, depending on circumstances, losing someone you love can be a financial shock. We highly suggest exploring your options to help give you the peace of mind you deserve.
Bereavement Service helpline
Telephone: 0800 731 0469
Textphone: 0800 731 0464
Welsh language telephone: 0800 731 0453
Welsh textphone: 0800 731 0456
As always Pension Options Direct are happy to help with any pension related questions or enquires
Enhanced Annuities
Enhanced annuities work in the same way as a standard pension annuity but also consider your lifestyle and health conditions. If you qualify for an enhanced annuity you would expect it to provide more income for the rest of your life than a standard pension annuity would provide.
Lifetime Annuities
A lifetime pension annuity is designed to provide you with an income and is payable for the rest of your life as a minimum. The funds that you have saved into your pension pot are used to purchase an annuity either from your existing pension company or from a new pension income provider.
Fixed Term Annuities
A Fixed Term Annuity is a type of Guaranteed Drawdown product designed to allow you to access your pension in a more flexible manner than purchasing a set income for the remainder of your life which is what a lifetime pension annuity does. They provide a guaranteed return on your investment.
Flexi access Drawdown
Flexible Access Drawdown products provide a flexible way to take your pension and range from relatively low risk products with guaranteed returns to high-risk products investing in all manner of asset classes. Whilst providing flexibility they do not give a guaranteed income for the whole of life.
Releasing Tax Free Cash
When you are 55 or over you can access your pension and, if you wish, take a tax-free lump sum. You can then invest the remainder in a pension product and either take an income or keep it invested. You can normally take up to 25% of your investment tax free and use this money as you wish.
Tax Free Lump Sum
If your pension has not been crystalised (accessed previously) you can take a tax-free lump sum from the pension investment. This is normally in the form of a 25% tax free lump sum payment, but some types of pension schemes do have enhanced benefits and permit more than 25% to be taken.
State Pensions
The Basic State Pension is available to men born before 6th April 1951 and women born before 6th April 1953 and the New State Pension available to those born later. We have links to the Government information pages and the State Pension Age Calculator and a link to obtain your State Pension Forecast.
Equity Release
Is a way of taking some of the equity (investment wealth) built up in your property as tax-free cash to provide additional income in retirement or to pass over inheritance money to the family before dying, repay other mortgages or borrowing or to just spend on something you have always wanted.
PENSION OPTIONS DIRECT
What areas do we cover?
With our office in Ilminster we can provide face to face meetings for people in the Somerset area including Taunton and Yeovil. We are may also be able to arrange face to face meetings in the areas of Bridgwater, Glastonbury, Shepton Mallet and Wells areas.
We are happy to have video meetings with people and therefore can provide a visual meeting to anyone in the UK. We are happy to talk through your options over the phone regardless of your location, so we can discuss your needs. We also are very happy to communicate with you through email which many customers now prefer, we can therefore provide a full UK coverage.