Statutory award for bereavement under the Fatal Accidents Act increased

The term "Bereavement award" in this context relates to the statutory lump sum payment that is made to families or loved ones following the death of a partner, child or spouse.

The Government have the unenviable task of trying to provide a lump sum to represent an award which compensates the family for the loss of their loved one. No award can possibly be enough but statutory laws dictate such a sum should be paid.

The categories of dependants who can claim bereavement are narrow. If a husband or a wife dies, then the surviving spouse can claim bereavement. If a child dies (ie a minor under 18 years), then the parents can claim bereavement if the child is legitimate. If the child is illegitimate, then the mother alone can claim bereavement for that.

The award is only payable in the event of a successful claim (it is not paid otherwise). Under the Fatal Accidents Act 1976 (amended by s.3 of the Administration of Justice Act 1982) the amount of bereavement award has been set as follows:

Death before 01/01/08 = £10,000

Death after 01/01/08 = £11,800

The increase in the award will apply to all causes of action which accrue on or after 1st January 2008 and it is also the government’s intention that in future the level of the award will be increased every three years to take account of inflation, in line with the Retail Prices Index. To many the award is still virtually an insult when faced with the aftermath of an accident.

Another claim that can be made under the 1976 Act is for reasonable funeral expenses. Any dependant who’s actually expended funeral expenses can claim them. What the court will award will be normal, reasonable funeral expenses. This would include a headstone and even the cost of embalming but would probably not include an elaborate memorial.

The families of the bereaved may well be entitled to many more heads of claim and they should be encouraged to seek legal advice on compensation following the event.

Official parliamentary summary of changes:

Bereavement Damages

The Parliamentary Under-Secretary of State for Justice (Bridget Prentice):

In their consultation paper on the law on damages which was published on 4 May 2007, the Government announced their intention to increase the level of bereavement damages awarded under section 1A of the Fatal Accidents Act 1976 every three years for inflation in line with the retail prices index (rounded to the nearest £100), and that the first 12 Dec 2007 : Column 43WS such increase would be made later in the year.

Bereavement damages were last increased from £7,500 to £10,000 on 1 April 2002. To give effect to this, my right hon. Friend the Secretary of State for Justice and Lord Chancellor has laid before Parliament an order increasing the level of bereavement damages awarded under section 1A of the Fatal Accidents Act from £10,000 to £11,800. An order has also been laid under Article 3A(5) of the Fatal Accidents (Northern Ireland) Order 1977 to make the same increase in the level of the award in Northern Ireland.

The orders will take effect from 1 January 2008, and the increased level of the award will apply to all causes of action that accrue on or after that date.