The Liberal Democrats have warned it is "shameful" that bereaved families of NHS and care workers who die of coronavirus risk losing access to welfare benefits if they receive payments under the government's Covid-19 compensation scheme and called on Ministers to "scrap this senseless rule immediately."
The Government has confirmed that families who receive the £60,000 payout under the scheme will no longer be able to claim for universal credit, housing benefit or pension credit, as they would be in breach of capital limits.
Layla Moran led the cross-party campaign calling for the introduction of the Covid-19 compensation scheme for families of NHS and care workers who lose their lives to coronavirus.
Figures she uncovered in July revealed only 19 families had benefited so far from the scheme, despite there being over 540 Covid-19 related deaths of health and social care workers in the UK.
Liberal Democrat MP Layla Moran said:
"It is utterly shameful that bereaved families of NHS and care workers face losing access to benefits if they receive a payment from the Covid-19 compensation scheme.
"This scheme was set up to provide financial security and comfort to the loveed ones of those who tragically died on the frontline against coronavirus.
"This exercise in penny pinching is completely tone deaf and risks rubbing salt in the wounds of grieving families. The Government must scrap this senseless rule immediately."