The Department for Work and Pensions (DWP) has released a new online guide which takes people who have lost a spouse or partner through a step-by-step checklist to ensure they are receiving all the financial support and benefits they are entitled to.
The “What to do when someone dies: step by step: guide on GOV.UK explains what to do after a death, including how to register it, notify relevant government departments and deal with the estate.
One important section in the guide covers what the surviving partner or spouse needs to do about their own tax, benefit claims and pension as they might change depending on their relationship with the person who died.
The new guidance can be found on GOV.UK here and we have have highlighted some of the key things to check.
Tax and National Insurance
Your income will probably change after the death of your husband, wife or civil partner.
If you get extra money from pensions, annuities, benefits or an inheritance, you may need to pay more tax. You may be on a lower income and need to pay less tax.
Your tax allowances - the income you do not pay tax on - may also change.
Income you must report
Tell HMRC if you get:
- interest from a bank, building society or a National Savings and Investment product, for example pensioner income, capital bonds
- income from letting out property
- income from Purchased Life Annuities
- Widowed Parent’s Allowance or Bereavement Allowance
- Carer’s Allowance
- foreign pension payments
- other income that should have been taxed but has not been
You do not need to tell HMRC about:
- income your employer pays tax on through PAYE
- income from a private pension
- income which does not get taxed, for example from an Individual Savings Account (ISA)
- any income if you’ll reach State Pension age within 4 months
- getting Jobseeker’s Allowance (JSA), Incapacity Benefit, Employment and Support Allowance (ESA) or Bereavement Support Payment
Tax allowances
If you pay Income Tax, you will have a Personal Allowance - income you do not pay tax on. Your allowance may change if your income changes.
HMRC will automatically adjust your Personal Allowance when you tell them about your change of income.
Married Couple’s Allowance
If you or your husband, wife or civil partner were born before 6 April 1935, you may have been claiming Married Couple’s Allowance.
You will still get the allowance for the current tax year (up to 5 April) but HMRC will automatically stop it after that and you’ll get just your Personal Allowance.
Blind Person’s Allowance
If your husband, wife or civil partner was claiming Blind Person’s Allowance, ask HMRC to transfer what’s left of their Blind Person’s Allowance for the current tax year (up to 5 April) to you.
Reduced rate National Insurance
If you are a widow and you were married before April 1977, you might be paying a reduced rate of National Insurance (sometimes called the ‘small stamp’).
You may be able to keep paying the reduced rate. Contact HMRC to find out what you should do.
Find more about changes to tax and National Insurance here.
Benefits
You will have to make new claims for some benefits that your husband, wife or civil partner was claiming for your family.
You may also be able to claim other benefits to help with your bereavement or if you’re on a lower income because of the death.
Bereavement benefits
You may be able to get:
- Funeral Expenses Payment - to help towards the cost of a funeral if you’re on a low income
- Bereavement Support Payment - if your husband, wife or civil partner died in the last 21 months.
- Widowed Parent’s Allowance - if your husband, wife or civil partner died before 6 April 2017 and you have at least one dependent child
Phone the DWP Bereavement Service to check if:
- you can get bereavement benefits
- the death will affect any other benefits you’re already claiming
DWP Bereavement Service
- Telephone: 0800 731 0469
- Textphone: 0800 731 0464
The guidance on GOV.UK states: “You’ll have to make new claims for Child Benefit and tax credits if your husband, wife or civil partner was claiming them.”
Child Benefit
You will need to make a new claim for Child Benefit if you were not the person named as the claimant on the original claim form.
Tax Credits
You should tell the Tax Credit Office about the death within one month if you have not already heard from them.
If your income is lower
You may be able to get benefits if you’re on a lower income following the death of your husband, wife or civil partner - use a benefits calculator to work out what benefits you can get and find out how to claim.
You may also be able to apply for:.
- Winter Fuel Payment - if you were born on or before 5 July 1952
- Cold Weather Payment - if you’re on a low income
- Warm Home Discount Scheme
Read the full guide on benefits on the GOV.UK website here.
Pensions
You may be able to get extra pension payments from your husband, wife or civil partner’s pension or National Insurance contributions.
State Pension
You need to be over State Pension age to claim extra payments from your husband, wife or civil partner’s State Pension.
What you get and how you claim will depend on whether you reached State Pension age before or after 6 April 2016.
Contact the Pension Service to check what you can claim.
If you reached State Pension age before 6 April 2016
You’ll get any State Pension based on your husband, wife or civil partner’s National Insurance contribution when you claim your own pension.
You will not get it if you remarry or form a new civil partnership before you reach State Pension age.
If you reached State Pension age on or after 6 April 2016
You will receive the ‘new State Pension’ and you may be able to inherit an extra payment on top of your pension.
Private pensions
You may get payments from your husband, wife or civil partner’s workplace, personal or stakeholder pension - it will depend on the pension scheme. Contact the pension scheme to find out.
You’ll have to pay tax on those payments if the pension provider does not pay it for you.
War Widow’s or Widower’s Pension
You may be able to get War Widow’s or Widower Pension - if your husband, wife or civil partner died because of their service in the Armed Forces or because of a war.
Read the full guide on pensions on the GOV.UK website here.
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