Bereavement Benefits

Lord Polak Excerpts

Thursday 6th April 2017 Lords Chamber

[Lord Henley]

My right honourable friend will obviously listen to what the noble Baroness has had to say, but I reject her allegation that these are cuts. There will be no savings to the taxpayer in the first two years; thereafter, as was made clear in the impact assessment, there will be some savings. The important point to get over is that we have increased the initial payment, which was frozen by the previous Government in 2001 and remained frozen for many years, from £2,000 to £2,500. We then make payments for 18 months to those with children. Obviously, no element of money will resolve the problems that individuals who have lost one or other parent will have. This is designed to help with the immediate costs of that bereavement. That is why we think that, by increasing the initial payment, we have made a very real change and provided some support for those with children.

[Lord Polak (Con)]

My Lords, the DWP impact assessment taken from the consultation on the website suggests that bereavement benefits make up a tiny part of the welfare budget, accounting for 0.32% in 2016-17 and anticipated to fall to 0.27% by 2019-20. I totally support the Government in the need to reduce the welfare bill, but it should not be done here. If children are bereaved, there is no fraud; you cannot fake it, or even abuse the system. Are we not, as I fear, targeting the wrong area?

[Lord Henley]

My Lords, again I do not accept what my noble friend said. We have made changes to this because the old system of three benefits—bereavement payment, bereavement allowance, widowed parent’s allowance—was overcomplicated, had been in place, with minor changes, since around 1920 and needed change. We have made a change that provides extra support at the immediate moment that that support is needed and appropriate support for those with children. There are, as I said, no immediate savings to the taxpayer; there might be savings later but it is always important, in all matters relating to benefits, to keep an eye on the overall costs.