Funeral poverty and what it means for Brits

You may have heard the term ‘funeral poverty’, but not really understood what it means. Funeral poverty is becoming a genuine and major concern for many Brits, particularly those who have relatives nearing the end of their lives. With the tough economic climate many families are facing right now, the cost of a funeral can be a heavy burden and can throw some into unmanageable levels of debt as a result.

What is funeral poverty?

The term ‘funeral poverty’ was coined following recent research by insurance company Sun Life into the affordability of funerals for our loved ones. They discovered that around 17 per cent of the people in the UK currently struggle to afford the cost of a funeral. The report, entitled The Cost of Dying, explained how funeral costs have risen significantly since 2004, by around 71 per cent in total.

The company estimated the costs of holding a funeral at £3,914 for a burial and £2,998 for a cremation, which is around 51 per cent higher than in 2007. When other discretionary costs are added in, such as flowers, a headstone and probate, the cost of a funeral could be as high at £7,622 which is up 7.1 per cent since this time last year.

Why Brits are struggling to pay

In the past, it has been typical for people to save up or to run a funeral plan during their lives where an amount of cash is accumulated for use in paying for their funeral. However, maybe because of hard economic times or a change in the notion of responsibility, people either haven’t been able or have chosen not to save money in this manner.

For many years the social fund has been available to the families of deceased individuals to help pay for the funeral if no other means of payment are available. However, the amount available has not increased since 2003, and claimants have to be on a very low income to qualify.

Over half of all claims are rejected, and the award is capped at burial fees plus £700, which is not enough to pay for even the most basic of funeral services. This leaves families with no other choice but to turn to loans, credit cards and other forms of borrowing to fund the funeral for their relative. In some cases, families have failed to pay, leaving funeral directors with unsustainable levels of debt to manage.

What can you do about funeral poverty?

Losing a loved one is a difficult time for anyone, and families do not need the added stress of financial worries on top of everything else. It therefore makes sense to plan for the end of your life and to do what you can to ensure your family are not left in financial difficulty when you pass.

Specialist solicitors are available to help with planning for later life, such as Breens Solicitors who can help with everything from making a will to planning for funeral costs. You can click here to see more about what they do and to contact them for advice and information.

You can visit the National Association of Funeral Directors website here.