What is Bereavement Support Payment and is it taxable in 2026/27?

Full answer

Bereavement Support Payment (BSP) helps with the financial impact of losing a spouse, civil partner or eligible cohabiting partner. It replaced older bereavement benefits and is paid in two parts: a one-off lump sum followed by monthly instalments for up to 18 months. There is a higher rate for those who were getting Child Benefit (or were entitled to it) and a standard rate for those without dependent children. The exact 2026/27 lump sum and monthly figures are set by DWP and change periodically, so check gov.uk for the current amounts rather than relying on an old figure. Key tax point: BSP is completely tax-free. It does not count as taxable income, you do not declare it on a Self Assessment return, and it does not use up any of your Personal Allowance (GBP 12,570 for 2026/27). It also does not attract National Insurance. Eligibility: you must generally have been under State Pension age when your partner died, your partner must have either paid enough National Insurance contributions (or died from an accident or disease caused by work), and you must usually claim within set time limits to receive the full amount. Following a 2023 change, eligible cohabiting partners with dependent children can also qualify, not only married or civil-partnered people. Who it affects: recently bereaved partners, particularly those with children who receive the higher rate. Because BSP is disregarded for a year in most means-tested benefit calculations, it should not immediately reduce Universal Credit or similar support, though the rules have limits worth checking. Worked context: as BSP is tax-free, none of it interacts with income tax bands or your take-home pay from employment. Your taxable earnings and income tax position are calculated separately, so you can use the income tax calculator for your wages while treating BSP as entirely outside the tax system. Confirm current rates and claim deadlines on gov.uk.

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