The widow(er)'s pension schemes recognise the particular financial diffi culties that arise for people following the death of a spouse.
The qualifying conditions for the widow(er)'s contributory pension scheme are more flexible than those applying to the old age and retirement pensions. Widowed people can qualify by using either their own or their late spouse's social insurance record. In addition, a person may also use the full social insurance record or the record over the previous three or five years.
As I indicated in my budget speech and following the review of the action programme for the millennium, this Government is committed to extending a pension rate of £100 per week to all social welfare pensions for older people. In this regard, from May 2000, the weekly rate of the widow(er)'s contributory pension will increase to £89.10 per week for those aged over 66. The maximum rate for a person aged under 66 years will be £81.10.
A widow's and widower's non contributory pension is available to those, without children, who do not qualify for the contributory pension. This is payable subject to a means test.
From May 2000 the maximum rate of the widow(er)'s non contributory pension will be £85.50 per week for those over age 66 and £77.50 for those aged under 66.
Title to these pensions also gives access to the free schemes, where the person is over 66 years of age. In this context, special measures are in place to ensure that households do not suffer the loss of entitlements following the death of a spouse. Widows-widowers aged from 60 to 65 whose late spouses had been in receipt of the free schemes retain that entitlement.
Widows and widowers with children who do not qualify for a widow/er's contributory pension can qualify for the one-parent family payment, the rate of which will be £85.50 per week for those over 66 and £77.50 for those under 66 with effect from May 2000. It is available to both men and women who are parenting alone and is designed to, first, provide basic income support, taking into account the special needs and requirements of single parents and, second, to encourage lone parents to return to the workforce so that, over time, they can achieve a greater degree of economic independence. To this end, an earnings disregard of £115.38 per week is available under the one-parent family payment means test to those lone parents in employment.
In the 1999 budget I introduced the bereavement grant which increased the payment on the death of an insured person from £100 to £500. This payment benefited almost 17,000 people last year. I announced a widowed parent's grant of £1,000 in the recent budget to provide additional support for those with dependent children in the immediate aftermath of a bereavement who qualify for a widow/er's contributory pension, one-parent family payment or a bereavement grant. The grant is expected to benefit about 1,500 widowed people each year.