Growing numbers of grieving families are having to sell belongings, raid their savings or borrow from friends to cover the cost of a loved one’s funeral, according to a report that says the “cost of dying” has hit a record high.
There has also been an increase in the number of “public health funerals”, formerly known as pauper’s funerals, which are arranged by the local council for someone who has died without relatives, and with no way of paying for their own send-off, said the insurer SunLife.
After two years of falls, UK funeral costs are on the rise again, with the cost of a basic funeral increasing by 4.7% in a year to reach £4,141, according to the report, which is based on interviews with more than 1,500 families and 100 funeral directors.
In 2004, a basic funeral cost £1,835, which translates into a 126% rise in 20 years – compared with the 72% increase in consumer price inflation over the period.
SunLife’s 20th annual report on the cost of dying found that paying for a funeral during the cost of living crisis “is pushing families into debt and impacting their mental and physical wellbeing”.
It found that the average total “cost of dying” – which includes burial or cremation fees, funeral directors’ costs, a mid-range coffin, one funeral limousine, a doctor and celebrant, and estate administration fees – had reached £9,658.
The report also revealed that while the majority of people (70%) do make provisions to pay for their funeral before they die, only 54% leave enough to cover the full cost. This means that, overall, only 43% of people are making adequate financial provision for their own funeral.
“This lack of provision is leaving those left behind with an average bill of £1,872 – which, in a cost of living crisis, is causing huge issues for millions of families,” said the insurer.
One in five families experience “notable financial concerns” when paying for a funeral. Of those, many said they scraped the money together by delving into their savings or investments, borrowing from a friend or relative, and selling belongings to cover the cost.
Last year, 3% of those who experienced significant financial difficulties when paying for a funeral said they turned to crowdfunding to help with the costs.
SunLife said about one in nine funeral directors provided public health funerals. More than a quarter said they had seen an increase in the number taking place over the past year.
The report also highlighted the growing popularity of no-frills, direct cremations, where there is no funeral service and no family or friends present.
In 2023, a fifth of funerals were direct cremations, up from 3% in 2019. This type of funeral typically cost £1,498 in 2023, down slightly on the 2022 figure of £1,511.
The pop star David Bowie, who died of liver cancer in January 2016, has been credited with raising the profile of direct cremations: he was reportedly secretly cremated without any family or friends present after telling them he did not want a funeral service. His ashes were scattered on the Indonesian island of Bali.
SunLife said: The number of direct cremations swelled during the pandemic – out of necessity – but they have continued to grow in popularity even in the years after Covid-19 restrictions.” This may be in part down to cost of living pressures, though it is also an option favoured by some who could afford to splash out on something more lavish but do not want a big fuss.
