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

The average cost of a basic funeral has hit a record high of £4,285, with one in five families finding it difficult to afford, according to annual statistics.

The figure represents a 3.5% increase from the previous year, while the overall cost of dying has reached £9,797, as per 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 seen a 134% rise from £1,835 in 2004.

If funeral prices had followed the same rate of inflation, the average cost today would be £3,211, SunLife estimated. The total cost of dying, which also encompasses full send-off costs and probate fees, has risen by 1.4% to £9,797. This relatively small increase is attributed to the average cost of probate falling by nearly £100 year-on-year.

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As probate fees are usually calculated as a percentage of the estate being managed, this is likely due to a change in the average estate size of respondents rather than a decrease in professional fees, the report suggested. London remains the most expensive place to die, with the average funeral costing £5,449 – a 5.4% increase on last year and 27% more than the UK average.

The cost of direct cremations – a cremation without a funeral service – has risen for only 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 surged in numbers during the pandemic, now represent one fifth of all funerals, marking a stark rise from merely 3% back in 2019. A study's survey highlighted that only 38% of individuals arrange to fully finance their own funeral costs, leading to "notable financial concerns" for one in five families.

These families, on average, faced the challenge of sourcing almost £2,371 to cover funeral expenses, with 33% dipping into savings and investments, 24% relying on credit cards, 23% borrowing from friends or family, and 19% selling personal items.

The research also points out that the British public continues to find discussions around funerals as awkward as ever. Of those arranging a funeral, a worrying 18% were not privy to any desires expressed by the deceased, with 51% unclear on whether their loved one preferred a burial or cremation, 67% unsure about the wish for a religious service, and an overwhelming 87% uncertain about who should be invited to pay respects.

In terms of personal funeral preferences, 35% expressed they wished for their families to spend the bare minimum. 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.”