What is Funeral Poverty?

Introduction

“Funeral poverty” is when someone can’t afford to pay for funeral costs, or when paying for them would put them into considerable debt.

Funeral costs can be overwhelming and can have a long-term financial impact for some. This is especially true when the person who has died has not set aside money for the funeral, or where a death is unexpected.

What is the cost of dying in the UK?

2023 saw the total cost of dying go up by 5% to £9,658 – the highest figure ever, according to SunLife’s Cost of Dying Report. This total includes funeral costs, administration and professional fees, and the costs of a wake or reception.

The average cost of a basic funeral in the UK is now £4,141, a 4.7% increase from last year. This covers the funeral director's service fees, the officiate’s fees and the burial costs or cremation costs.

How can I prevent my loved ones from going into funeral poverty?

How can I plan ahead for the cost of a funeral?

Funeral costs can be expensive. To avoid this falling to your friends and family at an already overwhelming time you can put different plans in place ahead of time:

1. Get Life Insurance: This means they’ll have access to a lump sum which can be used to cover the cost of the funeral
2. Getting a pre-paid funeral plan: This means that your funeral costs will be covered and you can decide what you want. Top tip: Make sure that your friends & family know about this plan!
3. Setting aside money for the purpose of your funeral: Note that it may take them a bit of time before they can access this money e.g. if they have to complete probate first.
4. Sharing your funeral wishes: making sure that the people organising your funeral know what you want avoids them spending money on things that you might not need or care about. You can set out your funeral wishes through our will services, either online or over the phone, here.

How to start planning a funeral

If you haven’t yet set out your funeral wishes, it’s worth having a chat with people close to you about what you might like for your funeral. Consider as many aspects as you can: from whether you’d like a cremation or burial, to the contents of your service, including songs and readings, your chosen coffin and what you’d like for any wake, reception or other celebration.

If you already have a preferred funeral director, arrange a meeting with them – they can provide a lot of expertise and answer any nagging questions.

Once you know what sort of ‘send off’ you’d like, you’ll be able to identify the costs you need to set aside – whether that’s in savings, through insurance or in a pre-paid funeral plan.

What can you do when you can’t pay for a funeral?

What happens if someone dies and they haven’t put enough money aside for the full funeral costs?

SunLife reported that last year 70% of people planned and made provisions for their funeral costs before they died – but only 54% put enough aside to cover the full cost of a funeral.

On average, in 2022, the people who organised the funeral of a loved one had to make up an additional £1870 in funeral costs from their own pocket.

The funding for those additional costs often came from savings or investments, credit cards, borrowing money from others - including through a bank or other loans - selling possessions, making payment arrangements with a funeral director, or through a benefit or other subsidy.

If possible, it’s a good idea to have a conversation with your loved ones to check if they have a plan in place for funding their funeral, and if so, what the details of it are – so you can plan ahead too.

Is there any support available to help someone pay for a funeral?

If someone you love has died and you are worried about how to pay for the funeral, there are some ways you can get support:

1. Check for a Life Insurance policy
2. Check for death in service with their employer
3. Check if they had a pre-paid funeral plans

If none of these apply then you can also seek support from the government via the following schemes:

1. Funeral Expenses Payment can help to pay for some funeral costs, such as burial fees, cremation fees, a death certificate as well as other documents.

You may be eligible for a Funeral Expenses Payment if you receive certain benefits or tax credits, and if you have a close relationship with the person who has died (for example, you may be their partner or the parent of a child).

2. Bereavement Support Payment may be available to you if your partner has died.
   This payment is not means-tested. To be eligible you must be:
   • Under State Pension age,
   • Either married to your partner, in a civil partnership with them or living with them as if you were married.
   • There are some other requirements that they check when you make the claim e.g. your partner’s working status.
   • The size of the Bereavement Support Payment varies depending on your circumstances.

What happens if no funds for a funeral can be found?

If the person who has died doesn’t leave enough money for a funeral, no funds can be found, or if there are no relatives or friends to arrange a funeral, the local authority can arrange a Public Health Funeral, this is sometimes known as a Pauper’s Funeral.

These funerals are usually a cremation with a short service, which guests can attend. Public Health Funerals or Pauper’s Funerals are simple events and don’t include flowers, cars or any other ‘extras’ which are usually associated with funeral services.