Bereavement Support Payment

Bereavement Support Payment (BSP) comes in two rates. The higher rate — a £3,500 lump sum plus 18 monthly payments of £350 — applies where the claimant is entitled to Child Benefit or was pregnant at the time of death. The lower rate — £2,500 lump sum plus 18 monthly payments of £100 — applies in all other cases. A landmark February 2023 court ruling extended eligibility to unmarried cohabiting partners where there are dependent children. BSP is tax-free and does not affect most other benefits. Timing is critical: claiming within three months of death maximises back-pay; the absolute deadline is 21 months after the death, after which no claim is possible. For the deceased's National Insurance contributions to qualify, they must have paid at least 25 weeks' worth at any point.

What it means in practice. BSP is a short-term cushion rather than an ongoing income. It is not means-tested, so savings and earnings make no difference to entitlement, and it is disregarded for twelve months when other benefits are calculated. That disregard is worth understanding: if the lump sum pushes your capital above the Universal Credit limit and you do not spend it, it can start to affect your award once the twelve months are up.

A worked example. Nia's husband dies leaving two young children. She claims within three months, so she receives the full higher rate — a £3,500 lump sum plus eighteen monthly payments of £350. Because BSP is ignored as income, her Universal Credit continues unchanged, and the lump sum is disregarded as capital for twelve months while she uses it to cover the funeral and the sudden drop in household income. Had she waited a year to claim, she would have lost the monthly payments for every month already elapsed.

Common pitfalls. Timing is the main one. The full entitlement only survives if you claim within three months of the death; after that you lose payments month by month, and after 21 months no claim is possible at all. People also assume cohabiting partners are excluded — since the February 2023 ruling, unmarried partners with dependent children can qualify. And BSP is entirely separate from help with funeral costs, which has its own claim and its own qualifying benefits.

How it relates to other terms. Entitlement depends on the deceased's National Insurance record. BSP does not reduce Universal Credit or Pension Credit as income, though the capital rules apply after the disregard ends. Where the death gives rise to an estate, the separate process of administering it is covered under probate, and a death in state care may also engage a coroner's inquest.

What to do next. Claim within three months — read our bereavement support guide for what you need. If funeral costs are a problem, check the Funeral Expenses Payment, which is a separate claim. When you are ready to deal with the estate, read the probate process.