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Support for the Bereaved

It is a pleasure to serve under your chairmanship, Mr Stringer. I congratulate my right hon. Friend the Member for Birkenhead (Frank Field) on securing this important debate. I also thank the people who have come down to Westminster today to make the case and, in particular, the Childhood Bereavement Network, Widowed & Young and the Good Grief Trust for the work that they do to raise awareness. They do so not for themselves, but for the people who come after them, so it is particularly worth while that they would do that.

My right hon. Friend made a very clear speech and asked specific questions. I hope that the Minister can respond to them all. My right hon. Friend spoke about the real hardship that people go through and described the shortfall between the average cost of a pauper’s funeral paid for by a local authority and the social fund funeral payments—a difference of £200.

My hon. Friend the Member for Walthamstow (Stella Creasy) spoke with real passion on behalf of two of her constituents in particular. Ros had described receiving the widowed parent’s allowance as an absolute lifeline. My hon. Friend also talked about the injustice that Joanna had suffered; she spoke about the difficulty that Joanna had experienced in getting her deceased partner’s name on the birth certificate and the injustice of unmarried couples being treated differently from married couples.

The hon. Member for North Ayrshire and Arran (Patricia Gibson) told her personal story and spoke compellingly about the human costs of what we are discussing. She also spoke about the illogicality of the Government’s position in not recognising people who cohabit in the same way as they do those who are married.

The Work and Pensions Committee report, published back in March 2016, raised a number of important issues and made considered recommendations. In June 2016, the Government responded to the report, with commitments to look at some of the recommendations more closely. Many months have passed since the Government responded, and six weeks ago we saw a written statement from the Under-Secretary of State for Welfare Delivery, in which the Government committed

to laying regulations to introduce the bereavement support payment. It is therefore vital that we are having this debate today to clarify whether the Government have progressed that agenda and what exactly their plans are for the future.

The Work and Pensions Committee report raises a number of issues regarding social security support in the event of a bereavement that I would like to address. If I may, I shall use my contribution to focus on the adequacy of the social fund funeral payment, the new bereavement support benefit and the need for a strategy to improve the operation of the market.

First, the Select Committee rightly pointed to the increasing gap between the average cost of providing a simple funeral and the support available from the state to do so. The report “Cost of Dying 2014” by the insurer SunLife found that the average cost of a funeral now stands at £3,500. However, figures from the Department for Work and Pensions show that the average award made through the social fund to help to meet the costs of a funeral during 2015-16 was £1,400.

The entitlements available through the social fund funeral payments include provision for meeting the full cost of some services, such as burial and cremation, with other expenses, such as funeral directors’ fees and the cost of a coffin, being met up to a capped limit of £700. The capped limit for funeral costs has been fixed at £700 since 2003, as my right hon. Friend the Member for Birkenhead explained, and has therefore been significantly eroded by inflation over the more than 10 years since then.

With the average award now running at less than 40% of the average cost of a funeral, it is clear that the adequacy of the support provided by the social fund now requires urgent review if we are to act to reduce funeral poverty. That has been raised repeatedly in the exceptional campaigning by my hon. Friend the Member for Swansea East (Carolyn Harris), who has courageously shared her own experience.

The Select Committee recommends that the Government revalue the assumptions that underpin the cap, which should then rise with inflation. That appears to be a very sensible approach and is in line with the usual practice in the wider social security system. The Government responded to that proposal by suggesting that they should not prescribe

“what a claimant should expect as part of a funeral”.

That is a deceptive answer and it does not address the issue directly. The point is that the cap is now insufficient for even the most basic of funerals. This is not a question of choice or expectation as the Government imply; it is about respect for those who have passed away through the provision of a simple ceremony and proper burial or cremation. Will the Minister agree to look again at the question of cost and indexation, given the overwhelming evidence of there being insufficient support?

There is, of course, the question of the operation of the market that underpins the adequacy of social security support to meet funeral costs. Sensibly, the Work and Pensions Committee suggested that the Government look at the issue through a cross-Departmental review of the inflation of funeral costs. The Committee has also sent its evidence to the Competition and Markets Authority in the hope of pursuing that proposal. The Government suggested that they would “consider this

recommendation” in the context of discussions they were already having with stakeholders. Will the Minister update us on whether a review will be brought forward? If the Government are now planning a belated review, perhaps they will state when it is scheduled and outline the terms of reference.

Clearly, one issue with the market for funerals is that people suffering a bereavement are often in a vulnerable position and can therefore find it more difficult to take the sort of steps necessary to take fully informed decisions, as they might under other circumstances. That is currently exacerbated by the Government’s numerous failures to provide clear and accessible information in that regard. The Committee made a number of recommendations, including an online eligibility checker, signposting to funeral homes accredited as part of a fair funerals scheme, clearer information on application forms and Government leaflets being distributed more widely. The Government seem strangely reticent about providing people suffering a bereavement with clear and helpful information about how to access funeral provision.

I was particularly shocked to see the Government’s claim that an online eligibility checker could only supplement a telephone or paper application and never act as an application in itself. Surely our Government, which placed so much emphasis on “digital by default”, must be technologically advanced enough to build a system under which an eligibility check can contribute to an online application? After all, that is possible in almost any other aspect of life. Can the Minister please clarify that?

I turn now to the bereavement support payment. In her written ministerial statement, the Under-Secretary of State for Welfare Delivery announced regulations providing for a single, new payment to replace bereavement payment, bereavement allowance and widowed parent’s allowance for those whose spouse or civil partner dies on or after 6 April this year. The Government argue that it will increase simplicity for those who are bereaved and seeking support. We do not support the reforms, which amount to a cut for bereaved children.

Although the Government have responded to criticism from the Social Security Advisory Committee and the Work and Pensions Committee by extending the period in which the bereavement support payment can be accessed from 12 to 18 months, that is still much less than the period of eligibility available under the current system. We therefore have serious concerns about whether it is long enough. Analysis by the Childhood Bereavement Network, for example, suggests that 91% of widows will be supported for a shorter period under the bereavement support payment than under the current system. That really is not acceptable. The network also suggests that 75% of parents bereaved after April will be worse off in cash terms under the new system, some by as much as £17,000. A study by J. William Worden, which is considered the most robust longitudinal survey available, found that the availability and consistent, nurturing presence of the surviving parent was one of the strongest predictors of bereaved children’s emotional health and behaviour.

Under the current system, the median claim is between five and six years. What evidence have the Government drawn upon to find that 18 months is suddenly sufficient? Would it not be better for the length of potential provision to be extended to ensure the best possible

outcome for the child in such a tragic and distressing situation? Is it not the case that the current system is more comprehensive in that regard? I await the Minister’s response to that point.

Parents who are not married or in a civil partnership are not eligible for the old widowed parent’s allowance or the new bereavement support payment, meaning that children lose out on support because of their parents’ marital status. We believe that that is unjust and a relic from a past society that, thankfully, we have progressed beyond. It is also the case that those with young children will be disproportionately affected, as they can currently claim for longer. That means that young children are being hit hardest by this cut in the tragic event of the death of a parent.

Finally, for some seemingly unjustifiable reason the Government have decided that bereavement support will not be uprated in line with inflation. That can only be a further way of saving money at the expense of the bereaved, just as we have seen with the social fund funeral payment that I described earlier. What possible justification can the Government have not to uprate this measure, as is standard practice across most of the social security system? This reform appears simply to cut support to those grieving the loss of a loved one; it is, in effect, an attack on those who are already suffering quite unimaginably. Will the Minister commit to publishing a regular, fully updated impact assessment of the changes being made or, better still, follow Labour’s lead and commit to scrapping this reform and establishing an independent review of the sufficiency of support for the bereaved?

To conclude, the Government’s inaction in supporting the bereaved has gone on for too long, and what little action there has been appears to be to those people’s detriment. So far, their action has amounted to a cut in the support on offer to the bereaved—a really horrendous attack that we stand against. I do not envy the Minister the task of trying to justify this so-called reform, so I urge him and the Government to think again about the plans.

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