New bereavement benefits to be introduced

Bereavement benefits

New bereavement benefits to be introduced

From April 2017, a new set of bereavement benefits will be introduced. The existing combination of bereavement payment, widowed parent’s allowance and age-related bereavement allowance will be replaced with a new bereavement support payment (BSP) consisting of lump sums and instalments paid over 12 months. While BSP will be tax free, it will not be as generous if your widow(er) has a young family, as widowed parent’s allowance is currently payable for as long as Child Benefit can be claimed for at least one child. The reform is once again a reminder that reliance upon the state for a safety net is not to be recommended.

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The information in this article does not constitute advice and should be used for informational purposes only. This content has been provided to Helm Godfrey by Taxbriefs.