welfare rights unit, cardiff council Member since 20th Jul 2004
Funeral Grant - loan from relative Thu 28-Jul-05 02:00 PM
A colleague is dealing with a client who applied for a funeral grant. The grant has been awarded but reduced because someone made a payment to the funeral director as a deposit. The client first described him as a cousin but now says he is not a cousin but a member of her "tribe" (her words). The person who paid the deposit has written a letter saying that he only intended the payment as a loan, not a contribution to teh cost of the funeral. I think if the payment was a loan it does not count as a "contribution" (regulation 8). I'm less sure if the man should count as a relative of the applicant/desceased - I can't find a definition of "relative" but I'm assuming it is less strict than a "close relative". I suppose a looser concept of kinship could count. Any ideas?
welfare rights adviser, sefton metropolitan borough council, liverpool. Member since 22nd Jan 2004
RE: Funeral Grant - loan from relative Fri 29-Jul-05 09:05 AM
Carol
As the word contribution is not defined then its ordinary meaning must be applied. The OED defines to contribute as to give. Therefore, a contribution is a gift. Thus a loan should not be caught by this.
See CIS 450/1995 which says that a genuine loan which is legally recoverable is not a contribution.