Welfare Benefits After a Bereavement

If your partner, dependent child, non-dependent, or a severely disabled person you cared for dies and they were part of your extended benefit unit within Universal Credit, a bereavement easement applies to give you time to adjust. Your Universal Credit will continue to be calculated using the same maximum entitlement for the remainder of the assessment period in which the death occurred, plus the following two full assessment periods. This means your award will not immediately reduce, even though your household circumstances have changed. However, any loss of income from your partner will be taken into account. In some cases, this may mean your Universal Credit payment actually increases during the easement period.

If you were receiving Carer’s Allowance when the person you cared for died, your payments can continue for a limited period. Carer’s Allowance will usually continue for 8 weeks from the Sunday following the person’s death. If they died on a Sunday, it continues for 8 weeks from that date.

Housing Benefit is calculated based on your household composition, income and capital. If someone in your household dies, your Housing Benefit may need to be reassessed to reflect the change in household members, as well as any resulting changes to income or capital. In some circumstances, the change may mean that you can no longer remain on Housing Benefit and a new claim for Universal Credit may be required instead, depending on your situation and whether you are of working age.

If you were claiming Pension Credit as a couple and your partner has died, your entitlement will change. Your claim will be reassessed from a couple’s rate to a single person’s rate. Although the amounts are different, you may still qualify for Pension Credit as a single person depending on your income and savings. Your entitlement will be recalculated based on your individual circumstances, including any changes to income, capital, or other benefits. If your partner was receiving a State Pension, you may be able to inherit part of their additional State Pension or protected payment, depending on their National Insurance record and when they reached State Pension age.

Council Tax Support is assessed based on your household composition, income and capital. If someone in your household dies, your entitlement may need to be reassessed to reflect the change in the number of people living in the property, as well as any changes to income or capital. If you were previously assessed as part of a couple, the claim will usually be reassessed as a single person claim. This may also entitle you to a 25% single person discount on your Council Tax bill, depending on who remains in the property.

New Style ESA is paid to you as an individual based on your own National Insurance contributions. If your partner dies, your entitlement will not be affected and your payments continue as normal. If the person who died was the ESA claimant, their claim will end. Any ESA owed up to the date of death can be claimed as part of the estate.

Jobseekers Allowance (Contribution Based) is paid to you as an individual based on your own National Insurance contributions. If your partner dies, your entitlement will not be affected and your payments continue as normal. If the person who died was the JSA claimant, their claim will end. Any JSA owed up to the date of death can be claimed as part of the estate.

If a child you're claiming Child Benefit for has died, or if the person claiming Child Benefit has died, you'll need to notify HMRC. If a child dies, child benefit will usually continue for 8 weeks or until the Monday following their 20th birthday if sooner. If the claimant has died, another eligible person can make a new claim. If you're now responsible for children after the claimant died, making a new claim is important as Child Benefit also provides National Insurance credits. Important: If your partner was the one claiming Child Benefit and they have died, you will need to get Child Benefit transferred into your name before you can qualify for the higher rate of Bereavement Support Payment. You can do this online or by calling the Child Benefit Office – you only need to tell them once and they will handle the transfer.

If your spouse or civil partner has died, you may be able to inherit some of their State Pension, depending on when you both reached State Pension age. You may inherit extra State Pension or a 'protected payment' if your partner built up entitlement under the old State Pension rules (before April 2016).

PIP is paid to individuals based on their own health conditions, so if your partner received PIP, their claim will end. If you receive PIP yourself, your payments should continue.

Attendance Allowance is paid to individuals based on their own care needs. If your partner was receiving Attendance Allowance, their entitlement will end when they die. If you receive Attendance Allowance yourself, your payments should continue, as it is based on your individual circumstances and care needs.

Disability Living Allowance is paid to an individual based on their own care and/or mobility needs. If your partner or child was receiving DLA and they have died, their entitlement will end. If you receive DLA yourself, your payments should continue, as this benefit is based on your own health needs and not those of other household members.

If the person who died had a Motability vehicle through their disability benefit (such as PIP or DLA), the vehicle will need to be returned. Motability will usually contact you after the death is reported to the DWP. The vehicle typically needs to be returned within a few weeks, though Motability may allow extra time in certain circumstances. If you were a named driver and relied on the vehicle for your own mobility needs, speak to Motability as soon as possible as they may be able to discuss options with you.

Council Tax discounts and exemptions are based on the circumstances of the people living in the property. If someone in the household dies, any discounts or exemptions that were linked to that person will usually end. For example, if a discount was being applied because someone was classed as severely mentally impaired (SMI), or because another household member was registered as their carer, those specific reductions will normally stop if they were dependent on the person who has died. However, the change in circumstances may mean that other discounts or exemptions now apply. If only one adult remains living in the property, a 25% single person discount may be awarded. In addition, where a property is left empty following a death, it can be exempt from Council Tax while probate or letters of administration are being dealt with. Once probate is granted, the exemption can usually continue for up to six months, provided the property remains unoccupied and has not been transferred or sold.

Whether an inheritance affects your benefits depends on the type of benefit you receive and the amount you inherit. Non means tested benefits such as Attendance Allowance or Personal Independence Payment are not affected by savings or capital. Receiving an inheritance will not change your entitlement to these benefits. However, means tested benefits such as Universal Credit, Pension Credit, Housing Benefit or Council Tax Support do take savings and capital into account. If the inheritance takes your total capital over the relevant limits, your entitlement could be reduced or stopped. In most cases, an inheritance only affects your benefits once you actually receive the money or it becomes legally available to you. It does not normally count while it remains within the estate and is not yet accessible. Because the rules can be complex, it is important to seek advice before making decisions about inherited money, particularly if you are receiving means tested support.