Funeral costs reach record high as one in five families struggle to pay

The average cost of a simple funeral has reached a record £4,285, with one in five families struggling to pay, annual figures show.

The figure has risen 3.5% in a year, while the overall cost of dying has reached £9,797, according to the 21st SunLife Cost of Dying report.

The cost of a simple funeral – which includes an attended burial or cremation, funeral director, doctor and celebrant fees, a coffin and limousine – has risen by 134% from £1,835 in 2004.

If funeral prices had risen at the same rate of inflation, the average cost today would be £3,211, SunLife calculated.

The total cost of dying – which also includes full send-off costs and probate fees – has increased by 1.4% to £9,797.

The comparatively modest increase was due to the average cost of probate falling by almost £100 year-on-year.

As probate fees are typically calculated as a percentage of the estate being managed, this is likely due to a variance in the average estate size of respondents rather than a decrease in professional fees, the report said.

London remains the most expensive place to die, with the average funeral costing £5,449 – a 5.4% rise on last year and 27% more than the UK average.

The cost of direct cremations – a cremation without a funeral service – has risen for just the second time since tracking began in 2017, up 6.7% from £1,498 to £1,597.

However, they still remain the cheapest type of funeral.

Direct cremations, which saw higher numbers during the pandemic, now account for a fifth of all funerals, up from just 3% in 2019.

Only 38% of people make provisions to cover the full cost of their funeral, causing “notable financial concerns” for one in five families, a survey for the study found.

On average, those families had to find almost £2,371 to cover the costs, with 33% using savings and investments, 24% putting it on a credit card, 23% borrowing the money from a friend or relative and 19% selling belongings.

The findings also suggest that Britons still find talking about funerals as uncomfortable as ever.

Of those organising a funeral, 18% did not know any of their loved one’s wishes, 51% did not even know if their loved one wanted a burial or cremation, 67% did not know if they wanted a religious service or not, and 87% did not know who they should be inviting to pay their respects.

When asked about their own funerals, 35% said they wanted their family to spend as little as possible.

SunLife chief executive Mark Screeton said: “It’s so important for people to talk more about their funerals so that loved ones aren’t left to organise things with little idea about what the deceased would have wanted.

“This year’s Cost of Dying Report highlights just how much of a financial and emotional impact not knowing can have.

“A send-off doesn’t need to cost thousands. A direct cremation with a DIY get-together afterwards might be the perfect way to say a personal goodbye to a loved one. But we know families tend to only choose low-cost options when it has been specifically requested by the deceased.

“So it’s really important that, as a nation, we start talking about funerals, so that we can discuss with loved ones the type of funeral we want and how it will be paid for. That way, family and friends aren’t left to make difficult emotional and financial decisions once we have gone.”