Does This Need To Be Repaid.
some months ago, my aunt died. She lived on her own, and was in receipt of full pension and attendance allowance, with very little in the way of savings.
As her nearest relative, I applied for and received a Funeral Grant from the DWP. At the time we were asked if she had any insurance policies, and we told them that as far as we were aware she didn't. We were informed that if we subsequently found any property/insurance policies, the value would be deducted from the Grant.
The Funeral Grant we were given did not cover the cost of the funeral (it didn't even cover the undertaker's charges, let alone the cemetary costs), even though the funeral was quite basic (cheapest coffin, one following car, grave opening and vicar's fee's) and cost just over £2000 in total. We were left with a £900 shortfall (I am in receipt of ESA, with no savings).
However, having trawled through her personal belongings (she apparently through very little away over the years!), we have come across a free-paid-up policy worth around £500.
Do we need to repay this, or can it be used against the shortfall in the funeral cost?