UK families bereaved by Covid-19 lose eligibility for welfare benefits

Relatives are offered the payment under the NHS and Social Care Coronavirus Life Assurance Scheme set up during the pandemic – but it is included in the means test for benefits to ensure only those who need financial help can claim welfare.

It means that if families accept the compensation, they may find themselves over the threshold that makes them eligible for financial support payments such as Universal Credit, Housing Benefit or Pension Credit.

Universal credit rules outline that anyone with capital or savings of over £16,000 – without the inclusion of the value of their main home – are disqualified from claiming support.

Labour is asking the government for the rules to be changed and relatives allowed to ‘grieve in peace with the full support’ of the benefits they were previously entitled to.

The party is asking that the compensation scheme be treated the same way as the fund set up for victims of the Windrush scandal and the Grenfell Tower fund – exempt from capital limit rules.

Jonathan Reynolds, Labour’s shadow work and pensions secretary, said: ‘Health and social care workers are putting their lives on the line to care for coronavirus patients, often without the proper equipment, and many have sadly lost their lives as a result.

‘The government was right to say we must honour those who have made the ultimate sacrifice. So it is shocking that families are being forced to choose between accessing social security they are entitled to or the compensation they need.’

A Government spokesperson said: ‘The death of any healthcare worker is a tragedy. Since it began in May, the life assurance scheme has already provided additional financial security to families of frontline NHS and social care workers in England who have died due to coronavirus.

‘It has always been one the central principles of Universal Credit that decisions on awarding the benefit should take into account individuals’ existing ability to meet their basic needs, so that we maintain our focus on supporting families in most need.’

Its estimated that 540 NHS workers have died from coronavirus in England and Wales since the beginning of the pandemic.

Since it was set-up on the May 20, 135 claims for the compensation scheme have been received, 64 have been accepted for payment proof of probate and no c claims have been rejected, NHS figures up to August 19 show.