UPDATE: Families across the UK are increasingly resorting to loan sharks and crowdfunding platforms to cover soaring funeral costs, which have just experienced their largest annual increase since 2016. The annual Cost of Dying report, released by SunLife, reveals that the average cost of a traditional attended funeral has surged by 5.3%, reaching £4,510 in the past year.
This alarming rise reflects escalating prices for coffins, burial and cremation fees, staffing, and energy costs. Since the report’s inception in 2004, average funeral costs have skyrocketed by 146%, compared to an inflation-adjusted increase of only 82%.
The report indicates that the most common funeral service, a simple attended funeral, has a lower average cost of £3,828 in the UK and £3,655 in Scotland. However, funeral costs are now a significant financial concern for 15% of families, leading many to utilize credit cards, installment plans, and even the sale of personal belongings to fund services.
The prevalence of crowdfunding to meet funeral expenses has doubled from 6% to 12% over the past few years. Disturbingly, 8% of families reported relying on loan sharks, marking the first time this source of funding has been identified in the Cost of Dying report.
Moreover, direct cremations—where the deceased is taken to the crematorium without an attendance or service—are rapidly gaining traction, now accounting for 21% of all funerals, a substantial rise from just 3% in 2019. Despite this trend, 86% of those opting for direct cremations still hold a wake or memorial service, pushing the average cost to £2,949.
While 70% of individuals make some financial provision for their funerals, only 42% have planned sufficiently to cover full costs, leaving families to shoulder the remaining burden.
SunLife Chief Executive Mark Screeton emphasized, “Our research shows that the cost of saying goodbye continues to rise faster than some families can afford. Planning ahead means families can create a meaningful farewell without unnecessary stress or cost at an already difficult time.”
Lindesay Mace, co-manager of the funeral poverty charity Down to Earth, warned, “The distress caused by struggling to pay for a funeral should not be underestimated. We see the devastating effects on people’s health and their ability to grieve on a daily basis at our Down to Earth funeral costs support service.”
The charity has witnessed a staggering 20% year-on-year increase in demand for assistance, with many seeking help in the current fiscal year of 2024/25.
As funeral costs continue to escalate, families are urged to consider financial planning options to alleviate the burden of these necessary expenses. The rising trend of utilizing alternative funding sources underscores the urgent need for affordable funeral solutions in the UK.
Stay updated as we monitor this developing crisis impacting countless families.
