Death Grant

HC Deb 24 November 1981 vol 13 cc742-3

9. Mr. Andrew Bowden

asked the Secretary of State for Social Services if he is now in a position to make a statement on the future of the death grant.

16. Mr. Dempsey

asked the Secretary of State for Social Services if he will make a statement following his consultation on the level of the death grant.

Mr. Rossi

Our considerations are not quite complete, but we expect to make a statement before the end of the year.

Mr. Bowden

Is my hon. Friend aware that we have been waiting a long time for such a statement? Does he recognise that the Dignity in Death Alliance, which is supported by 40 national organisations, is deeply concerned about the derisory level of the death grant, which has not been increased for nearly 14 years? Will he please ensure that there is a statement before Christmas and that there is no question of any means test at the time of bereavement?

Mr. Rossi

I agree that we have been waiting a long time for something to be done about the death grant. We have been waiting for 14 years. I promise that there will be a statement before Christmas. I assure my hon. Friend that we are most reluctant to impose a means test upon anyone at a time of bereavement.

Mr. Dempsey

Does the Minister realise that when the death grant was increased in 1967 it represented 76 per cent. of the cost of a modest funeral, whereas today it represents only 9 per cent? In view of the high cost of dying—incidentally, elderly persons are prevented from insuring against it—will the hon. Gentleman give an undertaking that we shall receive more than a statement and that there will be intimation of an urgent and substantial increase when he comes to the Dispatch Box to make a statement?

Mr. Rossi

If we were to increase the death grant to represent its 1967 value, the grant would stand at £145 and the total cost of paying that to everybody, irrespective of whether they needed it, would be £98 million.

Sir Albert Costain

Does my hon. Friend realise that if the grant is paid to those who do not need it it will be recovered by estate duty and the Government will not lose?

Mr. Rossi

These are matters that we have to take into account in considering this complex issue. I ask my hon. Friends to be patient. We shall produce a statement before Christmas.

Mr. Rooker

I understand the difficulty and complexity of this issue, and I do not wish to make a party point, but, bearing in mind what the hon. Gentleman has said about the Government's great reluctance to impose a means test, will he be prepared to go one step further and give a commitment that there will be no means test involved in payment of the death grant?

Mr. Rossi

We are considering ways of being able to make an increase in the benefit by passporting means. These methods are still under consideration and no final conclusion has been reached. I cannot make any commitment in advance of a statement.