Will the Bereavement Support Payment Regulations affect your family?
The House of Commons has recently passed on the Bereavement Support Payment Regulations paper, despite receiving thousands of letters against the overhaul. This means that anyone who submitted a claim after April 6th 2017 could be affected and it is thought some families will be left up to £12,000 worse off under the new changes! This is why it’s even more important to ensure you have financial protection in place to support your family in the event of your death.
Bereavement Support Payment Regulations
The new Bereavement Support Payment (BSP) will replace the current benefits: Bereavement Payment, Widowed Parent’s Allowance and the Bereavement Allowance.
Currently, when a parent passes away, the grieving household is eligible for an annual allowance of up to £5,852 to help with childcare and other costs. Widowed parents can receive support payments for a maximum of 20 years or when their youngest child leaves school. Those that are 45 and older without children, can also claim up to £112.55 per week for 52 weeks if they lose a partner.
Under the new system families will receive an initial tax–free sum of £3,500, followed by a monthly tax–free payment of £350 that will last for 18 months. This is a significant cut compared to the existing system that, in some cases, will see families missing out on up to £12,000. To avoid your loved ones worrying over money it’s worthwhile protecting your finances now.
Financial Protection Advice
If you’re a parent, especially with small children, then it’s vital you protect your assets and income. Death and illness are traumatic enough without having to consider the financial implications to the family unit.
Book a free consultation with our financial advisers today. We’re more than happy to offer trusted advice and provide financial assurance for your family.
