Losing a loved one is a deeply emotional experience, and the last thing anyone should have to worry about is money. Unfortunately, many people find themselves facing unexpected financial pressures on top of their grief. In the UK, there are several forms of financial support available to help ease these burdens, from government benefits to charitable organisations. Knowing where to look can make a world of difference during such a difficult time.
Claire Rulton, CFO of Mortality Alliance and owner of Addison Accounts & Training, highlights the importance of seeking financial help early. "Losing someone is already overwhelming," Claire says. "It’s essential that families know about the financial support available so they can focus on their grief, not the bills."
With over 25 years of experience in accountancy, Claire has seen firsthand the impact that bereavement can have on families. "When I was a child, my brother passed away very young, and I witnessed how that affected my parents, not just emotionally, but financially too. It’s the last thing any family needs in such a painful time."
Claire has also seen the effects of inadequate planning through her professional and personal circles. "I’ve also experienced this through a friend and client who passed away unexpectedly. Her husband and teenage child struggled not only with their grief but also with the financial strain that came from not having the right measures in place. It was heartbreaking to see them face that uncertainty on top of their loss."
As a mother herself, Claire adds: "The thought of my own family facing financial strain if something happened to one of us is unthinkable. My financial knowledge has given me the tools to prepare, but many families simply don’t have access to this kind of information. My hope is that more people become aware of the help that’s available to them."
Please note: The following information is correct as of October 2024, but support schemes may change over time. It’s always a good idea to check the latest details when seeking assistance.
1. Bereavement Support Payment (BSP)
The Bereavement Support Payment (BSP) is a government benefit that provides a tax-free lump sum followed by monthly payments over 18 months to those who’ve recently lost a spouse or civil partner. The rates are:
Higher rate: £3,500 initial payment followed by £350 per month
Lower rate: £2,500 initial payment followed by £100 per month
To qualify, the deceased must have paid National Insurance contributions, and the surviving partner must be under the State Pension age.
2. Funeral Expenses Payment (FEP)
Funeral costs can be overwhelming, but for those on certain benefits (like Universal Credit or Pension Credit), the Funeral Expenses Payment can help cover essential costs such as burial or cremation fees and funeral director expenses.
Claire notes, “Even with this help, funerals can cost more than families expect, so it’s important to seek support as soon as possible."
3. The Children’s Funeral Fund
This fund covers burial or cremation costs for children under 18 or stillbirths after 24 weeks of pregnancy. It's available to everyone, regardless of income, which can provide some relief to grieving parents.
4. Government Grants and Loans
In addition to bereavement-specific support, those in immediate financial hardship might be eligible for:
Budgeting Loans (for benefit recipients)
Local Authority Welfare Assistance Schemes, which vary by council
You can find your local authority to learn more about available welfare assistance by visiting the Find Your Local Council page on the UK government website.
5. Charitable Organisations
Charities like Cruse Bereavement Support and Turn2us can offer not just emotional support, but also help with accessing welfare benefits and grants. Claire adds, "The work these charities do is so important. Many people don’t realise how much help is available beyond government schemes."
6. Employer Support and Insurance
If the deceased was employed, their workplace may offer death-in-service benefits, and life insurance policies may also provide a lump sum payment to help surviving family members.
Resources:
Bereavement Support Payment: Government BSP Application
Child's Funeral Fund: Government Information
Turn2us: Grants Search Tool
Cruse Bereavement Support: Cruse Helpline
Find Your Local Council: Find Your Local Council