For section 36 of the Contributions and Benefits Act there shall be substituted—

“36 Bereavement payment.

(1)

A person whose spouse dies on or after the appointed day shall be entitled to a bereavement payment if—

(a)

either that person was under pensionable age at the time when the spouse died or the spouse was then not entitled to a Category A retirement pension under section 44 below; and

(b)

the spouse satisfied the contribution condition for a bereavement payment specified in Schedule 3, Part I, paragraph 4.

(2)

A bereavement payment shall not be payable to a person if that person and a person of the opposite sex to whom that person was not married were living together as husband and wife at the time of the spouse’s death.

(3)

In this section “the appointed day” means the day appointed for the coming into force of sections 54 to 56 of the Welfare Reform and Pensions Act 1999.”

In Schedule 4 to the Contributions and Benefits Act (rates of benefits etc.), for Part II there shall be substituted—

“Part II Bereavement Payment

Bereavement payment.

£2,000.00.”