Industry experts have warned that today’s ruling on cohabitee bereavement support may not universally apply and cohabiting parents must still plan for financial security in the event of death or illness.
Earlier today, the Supreme Court ruled that to refuse an unmarried mother-of-four access to a widowed parent’s allowance on the grounds of her marital status was a breach of her human rights.
When her partner died in 2014, Siobhan McLaughlin was denied a lump sum bereavement payment of £2,000 and a weekly widowed parent allowance because the couple were unmarried - despite living together for 23 years and having four children.
Today’s ruling has prompted calls for cohabitees to share other rights enjoyed by married couples or civil partners and could present an opportunity for other bereaved cohabitants to claim benefits previously denied to them.
However, as widowed parents allowance was replaced by bereavement support payment on 6 April 2017, an entitlement to the previous £117 per week allowance would require a partner to have died before this date.
Cohabiting parents need to plan for the possibility that one of them may suffer ill health or premature deathKay Ingram Kay Ingram, director of public policy at LEBC, said whilst the ruling could be good news for some bereaved parents, couples cohabiting with parental responsibilities should not rely on the decision being universally applied.
She said: "While this decision will be welcomed by bereaved cohabiting parents who have chosen not to marry or become civil partners, it may not be universally applied unless the government change existing legislation.
"The benefit of £117 per week, while a helpful supplement to household income, will not be sufficient to provide for the needs of most families facing the loss of a parent and this benefit no longer applies and has been replaced under the bereavement support payment with a lump sum of £3,500 followed by 18 monthly payments of £350."
Like its predecessor, bereavement support payment requires the parents to have been married or to be civil partners.
Ms Ingram added: "Cohabiting parents need to plan for the possibility that one of them may suffer ill health or premature death - simple steps such as making a will, buying life and ill health insurance to provide ongoing income for the family and nominating partners to receive pension benefits will all help safeguard loved ones should the worst happen.
"A financial review which can help couples make suitable arrangements is essential as cohabitants do not enjoy the same financial status as married or civil partner couples, notwithstanding this decision."
Paul Avis, marketing director at Canada Life Group, said today’s ruling was the 'tip of the iceberg' for the rights of cohabiting couples.
He said: "Since the 2017 changes, the key message is the state will help families cover funeral costs with an increased initial lump sum payment, but will not support them in the long-term with a significantly deteriorated children’s allowance."
"Whereas previously a bereaved parent could receive support for up to 20 years, the time period has now been restricted to 18 months."
He agreed with Ms Ingram even if Ms McLaughlin’s case set a precedent for cohabiting couples in the future, the allowances now provided by the state may not be enough to provide for a family in the long term.
He said: "With the reduction in state bereavement benefits, the importance of group life protection and family income benefit has never been greater - the question is who will cover the cost of the deceased’s income, with the need for assurance beyond paying off the mortgage."
Johnny Timpson, protection specialist at Scottish Widows, said: "The number of cohabiting households has more than doubled from 1.5m in 1996 to 3.3m in 2017, according to the Office for National Statistics.Times have moved on and cohabitees should qualify for this vital support at a time when they need it most.
"The outcome today on Mrs McLaughlin’s case is a landmark ruling, helping improve financial outcomes for cohabiting families and women, as well as raising awareness of their resilience and protection needs.
"The CII Insuring Women’s Futures Programme report says that approximately 70 per cent of families claiming these benefits are bereaved mothers with dependent children. The financial requirements and support of this group of people is an issue that therefore needs resolving, and today’s outcome is instrumental to a step in the right direction for the future of this benefit.
"As one of the country’s biggest protection providers, we continually encourage advisers to discuss protection needs with clients who are cohabiting families with dependent children."
rachel.addison@ft.com
