TL;DR
- Bereavement Support Payment (BSP) pays a lump sum of 3,500 pounds plus up to 18 monthly payments of 350 pounds for eligible surviving partners.
- A higher BSP rate applies if you have dependent children: 6,500 pounds lump sum plus 18 payments of 700 pounds per month.
- You may inherit some or all of your partner state pension entitlement depending on when they reached state pension age.
- Under the new state pension system, inheritance of additional state pension is limited.
- Occupational pension death benefits depend entirely on the scheme rules: check your partner pension documentation.
- Bereavement Allowance and Widowed Parent Allowance have been replaced by BSP for deaths on or after 6 April 2017.
Key Facts
Bereavement Support Payment
Bereavement Support Payment (BSP) is the main government financial support for people who have lost a spouse or civil partner. It replaced Bereavement Allowance and Widowed Parent Allowance for deaths occurring on or after 6 April 2017. BSP is paid at two rates depending on whether the claimant has dependent children.
The standard rate pays a lump sum of 3,500 pounds followed by up to 18 monthly payments of 350 pounds. The higher rate, for claimants with at least one dependent child or who are pregnant at the time of bereavement, pays a lump sum of 6,500 pounds followed by up to 18 monthly payments of 700 pounds. Total maximum payments at the standard rate are 9,800 pounds (3,500 plus 18 x 350). At the higher rate, 19,100 pounds (6,500 plus 18 x 700).
To be eligible, the claimant must be under state pension age and their deceased partner must have paid National Insurance contributions for at least 25 weeks in any single tax year, or died as a result of an industrial accident or disease. The claimant must not be in prison. BSP is not means-tested and does not count as income for tax credit or Universal Credit purposes.
The claim must be made within 3 months of the date of death to receive the full 18 payments. Claims made after 3 months receive fewer payments (the number reduces with each month of delay). Claims cannot be made more than 21 months after the date of death. Claim at GOV.UK or by calling the Bereavement Service helpline.
Inheriting State Pension
The rules for inheriting state pension from a deceased spouse or civil partner depend on when both partners reached or will reach state pension age and which pension system applies to them.
For people who reached state pension age before 6 April 2016 (under the old basic state pension system), the surviving partner may be able to inherit up to 100% of the deceased partner basic state pension and their Additional State Pension (SERPS or S2P). The amount depends on both partners NI contribution records and benefit entitlement.
For people under the new state pension system (reaching state pension age on or after 6 April 2016), inheritance is much more limited. Under the new system, each person builds their own state pension based on their own NI record. The surviving partner cannot inherit the deceased partner new state pension directly. However, if the deceased partner built up Additional State Pension or protected payment under the old system before April 2016, some of this may be inheritable. The surviving partner may also be able to use the deceased partner qualifying years to increase their own state pension, if they had fewer than 35 qualifying years themselves, up to the maximum new state pension amount.
Occupational and Workplace Pension Death Benefits
Occupational pension death benefits are governed entirely by the rules of the specific scheme. There is no statutory requirement for a scheme to pay a death benefit, though most do. Common arrangements are a spouse or civil partner pension at 50% of the member pension for life; a lump sum equal to the return of member contributions or a multiple of salary for active members; and a guarantee period on the pension payment (typically 5 to 10 years) during which payments continue even if the member dies shortly after retirement.
To find out what death benefits apply, contact the pension scheme directly. The scheme trustees or administrator will explain what is payable, who is eligible, and what documentation is required to make a claim. Cohabiting partners who were not married or in a civil partnership may have a claim under some scheme rules but not others.
DC Pension Inherited from a Spouse
A DC pension inherited from a deceased spouse or civil partner can be kept in the pension wrapper rather than being cashed in immediately. This preserves the tax advantages of the pension wrapper and allows the surviving spouse to draw from it when needed. If the deceased died before age 75, the inherited DC pension can be accessed income tax-free. If the deceased died after age 75, withdrawals from the inherited pension are taxed as income at the surviving spouse marginal rate.
Frequently Asked Questions
What is Bereavement Support Payment?
A government benefit for people who lose a spouse or civil partner. It pays a lump sum (3,500 or 6,500 pounds depending on whether you have dependent children) followed by up to 18 monthly payments. Claim within 3 months of the death at GOV.UK for full entitlement.
Can I inherit my partner state pension?
Inheritance depends on when your partner reached state pension age. Under the old basic state pension system (before April 2016), significant inheritance is possible. Under the new state pension system, direct inheritance is very limited, though some pre-2016 Additional State Pension may be inheritable.
Does my employer pension pay anything to my surviving partner?
Usually yes, but the amount depends entirely on the scheme rules. Contact the pension scheme directly to find out what death benefit applies and how to claim. Many schemes pay a spouse pension at 50% of the member pension for life.
Do I pay tax on an inherited pension?
If the deceased died before age 75, you can receive the DC pension tax-free. If the deceased died after age 75, you pay income tax on withdrawals at your marginal rate. This applies regardless of the IHT treatment of the pension from April 2027.
