Does backdated bereavement support payments count towards your universal credit savings?

Lulabells_Lollipops

I am looking for some advice please. I have recently been given a bereavement support payment (applied for 23 months after my partner passed away) consisting of two lump sum payments one for £3,500 and another for £6,300 for backdated payments owed. Both amounts were put into my bank account on the same day. These were one off payments, I have received no further payments since. My question is should the £6,300 backdated payment count towards my universal credit savings. If so could someone please advise me where to view the information stating this.
Thank you.

xylophone

Presumably you were able to claim under dispensation.

https://www.gov.uk/bereavement-support-payment/eligibility

You usually need to make a claim within 21 months of your partner’s death.

If it’s been over 21 months since your partner’s death, you may still be able to make a claim if their cause of death was only recently confirmed. Call the Bereavement Service helpline for help.

How soon you make your claim can also affect how much money you’ll get. You usually need to make a claim within 3 months of your partner’s death to get the full amount of payments.

and so eligible to receive the one off payment of £ 3,500 and 18 x £350 in arrears.

According to  https://www.independentliving.co.uk/advice/bereavement-support-payment/

Bereavement Support Payment will not affect Universal Credit entitlement or be included within the Benefit Cap.

It will also not be subject to income tax.

It would be a wise move to contact UC just to check the situation?

https://www.gov.uk/universal-credit/contact-universal-credit

Lulabells_Lollipops

Thank you very much for the information given. I have applied for and received bereavement support payment as detailed above however in doing so it has taken me over the savings allowed by universal credit.  Because of this my universal credit has been stopped. All of the information I have been able to source online suggests that bereavement support shouldn't be considered as savings when in receipt of universal credit. I therefore wanted to know where I could find the the information quoted by the universal credit advisers as the reason for closing my claim.  

xylophone

See below

https://assets.publishing.service.gov.uk/media/63eb6c13e90e077bb0c927c2/bsp1-notes.pdf

Will Bereavement Support Payment affect any benefits I get?

No. Bereavement Support Payment will not have an impact on any other benefits you get. In the longer term, any other benefit you get might be affected if you have not spent your Bereavement Support Payment.

You must tell us about your Bereavement Support Payment if you apply for another benefit.

Is Bereavement Support Payment taxable?

No. All payments are tax free.Will Bereavement Support Payment affect any benefits I get?

No. Bereavement Support Payment will not have an impact on any other benefits you get. In the longer term, any other benefit you get might be affected if you have not spent your Bereavement Support Payment.

You must tell us about your Bereavement Support Payment if you apply for another benefit.

Is Bereavement Support Payment taxable?

No. All payments are tax free.

It seems that you are being treated as if you had not spent your BP but had saved it. You might like to repost on the Benefits Board.

Can you submit an appeal?

Spoonie_Turtle

I don't have the brain to fully understand it but this is the official information you need https://assets.publishing.service.gov.uk/media/63edef2b8fa8f5612f2a7de0/adm-memo-04-23-the-bereavement-benefits-remedial-order-2023-uc-capital-disregard.pdf 

Presumably you applied due to the change in eligibility which would come under "5. The Remedial Order provides that any payment of WPA or BSP in relation to the entitlement conditions set out in DMG memo 02/23 will be disregarded for a period of 12 months for UC." 
So it looks to me like it should be disregarded for 12 months but definitely see what other members think, whether I've misinterpreted.

Did your UC stop because the deduction for savings over £6,000 took your UC to nil, or is it suspended pending investigation of how much capital you have?

HillStreetBlues

Did you claim because of the Bereavement Benefits Remedial Order?

Lulabells_Lollipops

I was unable to claim bereavement support at the time of my partners passing due to us being unmarried. A change in the law meant that unmarried partners living together with children were more recently able to make a claim which is what I did. Universal credit have informed me that the reason they have closed my claim is because the backdated payment of £6,300 counts towards my savings. The capital calculation provided to me by universal credit is
my savings (including the £6,300 which they say is counted towards my savings)  - £3,500 (which they say doesn't count towards my savings) = an amount over £19,500 (£16,000 allowed savings plus £3,500 bereavement support)
I will appeal their decision if it is incorrect I just wanted to first make sure the information I have sourced is correct or if I have misunderstand/ missed something.

HillStreetBlues

https://www.legislation.gov.uk/uksi/2023/134/made

The Bereavement Benefits (Remedial) Order 2023

Capital disregards for lump sum payments of bereavement benefits


Amendment of the Universal Credit Regulations 2013

13.  In Schedule 10 to the Universal Credit Regulations 2013 (capital to be disregarded)(37)—

(a)after paragraph 18 insert—

“18ZA.  A payment made within the past 12 months of widowed parent’s allowance—

(a)to the survivor of a cohabiting partnership (within the meaning in section 39A(7) of the Contributions and Benefits Act) who is entitled to widowed parent’s allowance for a period before the Bereavement Benefits (Remedial) Order 2023 comes into force, and

(b)in respect of any period of time during the period ending with the day before the survivor makes the claim for widowed parent’s allowance.”;

(b)in paragraph 20—

(i)the existing text becomes sub-paragraph (1);

(ii)after that sub-paragraph insert—

“(2) Where bereavement support payment under section 30 of the Pensions Act 2014 (bereavement support payment) has been paid within the past 12 months to the survivor of a cohabiting partnership (within the meaning in section 30(6B) of the Pensions Act 2014) in respect of a death occurring before the day the Bereavement Benefits (Remedial) Order 2023 comes into force, any amount of that payment which is—

(a)in respect of the rate set out in regulation 3(1) of the Bereavement Support Payment Regulations 2017, and

(b)paid as a lump sum for more than one monthly recurrence of the day of the month on which their cohabiting partner died.

  Interestingly unlike other benefits listed such as ESA  the UC passage doesn't end with "but only for a period of 52 weeks from the date of receipt of the payment.”
So it seems unlike other income related benefits the disregard isn't just for 12 months, it's as long as the person has the capital.

https://www.legislation.gov.uk/uksi/2013/376/schedule/10

The Universal Credit Regulations 2013
[20.—[F6(1)] A payment made within the past 12 months of bereavement support payment in respect of the rate set out in regulation 3(2) or (5) of the Bereavement Support Payment Regulations 2017 (rate of bereavement support payment).]

[F7(2) Where bereavement support payment under section 30 of the Pensions Act 2014 (bereavement support payment) has been paid within the past 12 months to the survivor of a cohabiting partnership (within the meaning in section 30(6B) of the Pensions Act 2014) in respect of a death occurring before the day the Bereavement Benefits (Remedial) Order 2023 comes into force, any amount of that payment which is—

(a)in respect of the rate set out in regulation 3(1) of the Bereavement Support Payment Regulations 2017, and

(b)paid as a lump sum for more than one monthly recurrence of the day of the month on which their cohabiting partner died.]something.

So I would be appealing quoting 20 of Schedule 10 to the Universal Credit Regulations 2013 that the capital should be disregarded  indefinitely  as required by the The Bereavement Benefits (Remedial) Order 2023

Lulabells_Lollipops

Thank you for your help.

xylophone

See

https://www.citizensadvice.org.uk/benefits/universal-credit/problems-with-your-payment/challenging-a-universal-credit-decision-mandatory-consideration/

Spoonie_Turtle

HillStreetBlues said:

https://www.legislation.gov.uk/uksi/2023/134/made

The Bereavement Benefits (Remedial) Order 2023

Capital disregards for lump sum payments of bereavement benefits


Amendment of the Universal Credit Regulations 2013

13.  In Schedule 10 to the Universal Credit Regulations 2013 (capital to be disregarded)(37)—

(a)after paragraph 18 insert—

“18ZA.  A payment made within the past 12 months of widowed parent’s allowance—

(a)to the survivor of a cohabiting partnership (within the meaning in section 39A(7) of the Contributions and Benefits Act) who is entitled to widowed parent’s allowance for a period before the Bereavement Benefits (Remedial) Order 2023 comes into force, and

(b)in respect of any period of time during the period ending with the day before the survivor makes the claim for widowed parent’s allowance.”;

(b)in paragraph 20—

(i)the existing text becomes sub-paragraph (1);

(ii)after that sub-paragraph insert—

“(2) Where bereavement support payment under section 30 of the Pensions Act 2014 (bereavement support payment) has been paid within the past 12 months to the survivor of a cohabiting partnership (within the meaning in section 30(6B) of the Pensions Act 2014) in respect of a death occurring before the day the Bereavement Benefits (Remedial) Order 2023 comes into force, any amount of that payment which is—

(a)in respect of the rate set out in regulation 3(1) of the Bereavement Support Payment Regulations 2017, and

(b)paid as a lump sum for more than one monthly recurrence of the day of the month on which their cohabiting partner died.

  Interestingly unlike other benefits listed such as ESA  the UC passage doesn't end with "but only for a period of 52 weeks from the date of receipt of the payment.”
So it seems unlike other income related benefits the disregard isn't just for 12 months, it's as long as the person has the capital.

https://www.legislation.gov.uk/uksi/2013/376/schedule/10

The Universal Credit Regulations 2013
[20.—[F6(1)] A payment made within the past 12 months of bereavement support payment in respect of the rate set out in regulation 3(2) or (5) of the Bereavement Support Payment Regulations 2017 (rate of bereavement support payment).]

[F7(2) Where bereavement support payment under section 30 of the Pensions Act 2014 (bereavement support payment) has been paid within the past 12 months to the survivor of a cohabiting partnership (within the meaning in section 30(6B) of the Pensions Act 2014) in respect of a death occurring before the day the Bereavement Benefits (Remedial) Order 2023 comes into force, any amount of that payment which is—

(a)in respect of the rate set out in regulation 3(1) of the Bereavement Support Payment Regulations 2017, and

(b)paid as a lump sum for more than one monthly recurrence of the day of the month on which their cohabiting partner died.]something.

So I would be appealing quoting 20 of Schedule 10 to the Universal Credit Regulations 2013 that the capital should be disregarded  indefinitely  as required by the The Bereavement Benefits (Remedial) Order 2023

The UC memo does say it's 12 months
"5. The Remedial Order provides that any payment of WPA or BSP in relation to the entitlement conditions set out in DMG memo 02/23 will be disregarded for a period of 12 months for UC."  (Source linked in my previous post.)

The reference to time periods in the UC legislation would appear to mean once the payments have been made longer than 12 months ago, they are no longer disregarded.