Universal credit and Child death beneficiary from pension

Mumofthree2024

My Ex husband has sadly passed away and Im in receipt of UC. Because I am the guardian of his 3 children I will receive their death beneficiary until they are 17 years old to help with the day to day costs of raising them. Much like child support (which does not affect universal credit payments). 

My question is will this death beneficiary affect my universal credit claim and be counted as earnings?

It seems so unfair if it does as we are struggling financially at the moment due to the sudden loss of child support and this was NOT counted as earnings. 

(FYI, in work 3 days a week, unpaid carer for eldest child who has high level of needs)

Thank you. 

tacpot12

I agree that it seems unfair, in the your ex-husband has provided for his children both in life and in death, but in death, his provision reduces your benefits when in life it did not.

I can't see anywhere in the Advice to Decision Makers that covers you situation, but someone more knowledgable may be along to confirm the situation. 

I would say that for the moment, all you can do is let your Work Coach know that you have started to receive this death benefit and how much it is. You will need to tell the the basis on which it is being paid - if it is as a result of a pension or an insurance policy, let them know which it is. You should also tell them the name of the organisation that is paying the benefit, and it might help to know if any income tax is being paid on the money. 

The DWP will make their decision, and if it is that this income cannot be ignored for Universal Credit, you can ask them to point out the regulation that they have relied on to come to this decision. If you think that the DWP have made a mistake, you should ask your local citizens advice, but you need to do so promptly as you will only have one month to ask for a mandatory reconsideration.