How to manage your money after a bereavement

When someone important to us dies, how much money we have can change a lot.

Some common reasons why include:

• The person who has died may have been earning money or claiming benefits that you shared.
• You might have to pay for things like the funeral, healthcare, or legal fees.
• You may still be paying for things you had to pay for at the end of the person’s life, like care, travel or equipment.
• The person who may have been taking care of children or other family members, which you have had to take over or pay for.

This means that after a bereavement you may be:

• Struggling to make sense of how much money you have and are spending.
• Struggling to pay bills on time, including rent or mortgage.
• Building up debt you can't repay.
• Unable to cover essentials like food and heating.

If your bereavement has meant a change in how much you earn or spend, this might be a good time to review your budget.

Many people feel very tired and struggle to concentrate when they are grieving. Putting a budget in place can help you feel more in control and help see what bills are due and when. It can also help to work out if you might need support paying debts.

Making a budget might feel difficult at first. It can be stressful and upsetting as well as hard to understand. But it is an important first step.

These online budgeting tools may make this task a bit easier:

• StepChange: Making a budget
• Money Helper: Budget Planner

Some people are able to claim one-off payments and grants. They are usually given based on low income, a health need, where you live or your job.

• For example, there are a range of funds for those with links to different trades, professions, unions, or the armed forces.  Find out what you're eligible for by using Turn2Us Grant Search.
• Local councils might offer help with some essential costs like energy and water bills, food, clothes or appliances. They are usually called "welfare assistance" or "household support". Find for your local council to see what they offer.
• Find grants to help with energy bills on our Keeping safe and warm after a bereavement page. 

A change in your income or living situation might mean you’re able to claim benefits which you weren’t able to before.

If your husband, wife or partner has died, you may be able to claim bereavement benefits for the first 18 months. The total amount can range from around £4,300 – £9,800. See our information on bereavement benefits.

Use one of the benefits calculators below to see what else you might be able to claim.

• Citizens Advice: Benefits calculator
• Turn2Us: Benefits calculator

Many people choose to speak to an adviser as applying can be complicated. See Useful contacts for organisations that can help.

Support for migrants

If you were not born in the UK, the types of support you may not be able to apply for some of the above support.

• Visit Turn2Us’s information for migrants

You might also be able to claim for a Funeral Expenses Payment if you:

• already get certain benefits
• meet the requirement for your relationship with the person who has died
• need financial help to pay for a funeral you’re organising

Although it will not usually cover all costs, the Funeral Expenses Payment can help cover the cost of:

• burial fees for a plot
• cremation fees and the cost of a doctor’s certificate
• your travel when arranging and going to the funeral
• the cost of moving the body in the UK, if this is more than 50 miles
• a death certificate or other important documents

How much financial support you get will depend on your personal circumstances. This can include any other money that’s available to cover the funeral costs, from an insurance policy or the person’s estate, for example.

See information on the Government website or our advice on How to arrange a funeral.

The person who has died may also have a workplace or personal pension (sometimes also called a private pension) that you are able to claim from, if you were a close family member or they named you on their policy.  Remember that from 2012 employers had to begin automatically enrolling and contributing to the pensions of people who work for them. This makes it more likely that the person who has died had a pension.

To find out, you could:

• check paperwork if you have it
• contact their employer or pension provider
• use the government’s Pension Tracking Service

If your partner has died you may inherit some of their state pension. There is more information on this on the government website.

Pensions are complicated and it’s important to get guidance and financial advice before making any decisions.

Money Helper are an organisation that offers advice, funded by the government. They offer:

• online information on What to do about someone’s pension when they have died or State pension death benefits.
• free phone appointment with specialists (under a scheme called ‘Pension Wise’).
• a directory of trusted financial advisers.

It may be possible to access other types of long-term savings early, such as any Lifetime ISAs.

If you think it might be possible your partner or spouse had life insurance (sometimes this is connected to a pension or their job) this may also be a source of income for you.

See Marie Curie’s advice on Claiming on life insurance.

Many people feel they may need to take out credit cards or loans after a bereavement. This might be to cover essentials like food and heating when their income goes down. Or they may need to pay for costs relating to a bereavement, like a funeral or legal fees.

You may also be managing existing household borrowing, such as a car loan or a mortgage.  When you are grieving, it can be difficult to keep track of everything, especially if you aren’t used to managing these types of bills yourself.

If you are struggling, it is a good idea to speak to the organisation that you owe money too as a first step.

Energy suppliers and lenders legally must give support to people in vulnerable circumstances, including people who are bereaved.  So, if you feel comfortable, sharing that you are bereaved means they will be better able to support you.  You may be put in touch with a specialist team and be offered different options.

The stress of unaffordable debt can be really hard to cope with while you’re grieving, especially if you’re worried about how you are going to pay it back. You might not know where to start and what bills to pay first.

Many people feel trapped by debt. But depending on your situation, you may be able to:

• agree smaller repayments with your lenders
• create a single, regular, consolidated payment, instead of lots of smaller ones
• pay less of your debt back because of your illness
• get a 60 day break from interest, fees or court action while you get debt advice

There are organisations that can help you do this for free.  You do not need to pay for debt advice.

• StepChange offer online information and advice or you can speak to an adviser on the phone: 0800 138 1111.
• MoneyHelper can help you search for a free debt adviser.

If you’d like to speak to someone in person or on the phone about money worries, get in touch with one of these organisations.

• Citizen’s Advice – Online and in-person advice on debt, work, benefits, housing, family and more.
• Money Helper – Phone, webchat and online information provided by the Money and Pensions Service, funded by the Government.
• National Energy Action – Energy advice and support helpline and online information.
• Shelter – Emergency helpline, online housing information and webchat for advice on homelessness and housing.
• Step Change – Free debt helpline, webchat and online advice.
• Turn2Us –  Advice on the phone or online, for people who are struggling financially.