'The Financial Implications for Parents of the Death of a Child', by researchers at the University of York, supported by the Joseph Rowntree Foundation, is the first in-depth study into the subject.
It found that many families suffered an immediate drop in income as social security benefits were withdrawn - as much as 70 per cent for a lone parent who has been caring for a child.
Recently-bereaved parents often had difficulties meeting funeral costs and expenses, and many financial problems were related to the preceding costs of care, such as frequent hospital trips, special clothing, equipment and home adaptations. Some families had also taken every opportunity for outings and holidays before their child died. Parents who left work to care for their child said returning to work was also stressful and difficult.
Some parents found the interruption in their National Insurance contributions meant they could not claim contributory benefits if they became sick or unemployed, while parents whose only child had died, found having to register their availability for work within eight weeks especially harsh.
The report urged social security policy makers to consider ways of softening the impact of the immediate withdrawal of benefits from families after a child dies, and of protecting the National Insurance records of all parents caring for very sick or disabled children.
It also called for the special needs of these parents to be considered in the Government's review of parental leave provisions and suggested that money advice could be given during bereavement counselling.
