Unmarried Couples Lose 80m Bereavement Benefits

Unmarried Couples Lose 80m Bereavement Benefits.

The Work and Pensions Select Committee is currently investigating changes to the benefits system on death. The current treatment rules have been around since the new Social Security system started in 1949 with the Widows allowance and other bereavement benefits including funeral poverty only applying to married couples (now including civil partnerships).

Today, many couples do not "tie the knot" and as such can be together for many years and then when one of them passes away there is no entitlement to bereavement benefits and indeed no cross subsidy of national insurance contributions to improve state pensions.

In a report issued by Royal London, prompted by the former Pensions Minister, Steve Webb, who now works with Royal London, they have suggested that up to £82 million per year is lost in bereavement benefits by unmarried couples. This is based upon actual benefits payable combined with mortality rates published by the Office for National Statistics (ONS).

Comment

We believe that the benefit system is unfair and people should have a choice as to whether they can legally marry or not. Given that your unmarried partners wealth and income can be taken into account for means tested benefits such as out of work benefits and housing allowance as well as council tax reductions it is totally unfair to then ignore the fact that you are a couple when one of you passes away.

It is as if the government decides to recognise your partnership when it suits them and treats you as if your partnership never existed on death. It's all about the money!

We welcome the Work and Pensions Select Committee inquiry.