The eligibility for some bereavement payments has now been extended to unmarried couples, but there are two major caveats.

Where did this come from?

In 2021, just over one in five couples living together were cohabiting but not married or in a civil partnership. Despite the growth in cohabitation, the UK tax and benefit systems have an ambivalent approach to those individuals outside the two legal frameworks. When considering Universal Credit claims, authorities take into account the joint income of unmarried couples. However, unrelated individuals are subject to inheritance tax.

Two challenges of this differential treatment have been made to the courts in the last few years. Both cases concerned bereavement benefits, which the law at the time restricted to surviving spouses and civil partners. In both instances, the government lost, but not because it was discriminating against unmarried couples. The courts’ decision hinged on the unequal treatment of each couple’s children, which fell foul of the European Convention of Human Rights.

The new changes for unmarried couples

Now three years after the second defeat, legislation is finally going to ‘rectify’ the original law. If one individual in an unmarried couple with dependent children dies, the survivor would receive the same higher rate of Bereavement Support Payment (BSP) as a surviving spouse or civil partner. The change will be backdated to 30 August 2018, when the Supreme Court gave the first ruling. Backdating extends Widowed Parent’s Allowance entitlement for BSP claimants from 6 April 2017.

While the inclusion of some unmarried couples of BSP is welcome, it comes with two major caveats:

  • It applies only to unmarried couples with dependent children, which includes cases in which the survivor is pregnant at the time of their partner’s death. Unmarried couples who do not have dependent children remain excluded from BSP.
  • The amount of BSP is far from generous. The government set the higher rate of Bereavement Support Payment in 2017 as a lump sum of £3,500, with up to 18 monthly payments of £350. However, inflation has since reduced its value by almost 20%.

The BSP rules serve as a reminder of the insufficient state-provided safety net in 2023, whether or not you are cohabiting. With this in mind, it’s important to build your own safety net and protect your future financial circumstances.

How can we help you?

If you are a cohabiting couple and you are looking to protect your future financial circumstances, then please contact us on 01444 716946 or on 01273 963656 or alternatively email us here