Tag: funeral costs

New report finds cost of dying has reached a record high in Scotland

Following the release of the latest funeral cost figures, a Scottish charitable organisation is calling on the Scottish Government to re-visit their financial support.

The latest Sunlife Cost of Dying Report 2024 has found that the average cost of a basic funeral in Scotland – which doesn’t even include a wake or other send-off costs like funeral cars or flowers – has risen to £4,030*.

As a result, Caledonia Funeral Aid – a charity-run social enterprise which supports those facing funeral poverty – has urged the Scottish Government to reconsider the average payout to those who are eligible.

Co-founder and chair John Halliday, explained: “The Scottish Government has made real gains in increasing the take-up of the Funeral Support Payment – which contributes somewhat towards the main basic funeral costs.

“However, the average payout to eligible residents in Scotland is £1,949,**. If someone is organising even a basic funeral, they are over £2,000 short. But then if you want flowers, sandwiches, a venue for a wake, transport, orders of service or a headstone that would all be additional costs.

“The report also finds that the average cost of dying (a funeral plus professional fees and send-off costs) has reached a record high of £9,658*. So, the Funeral Support Payment has become a drop in the ocean for people when presented with the final bill.

“We would ask the Government to consider that those who qualify for the payment are in receipt of benefits like Child Tax Credit, Universal Credit, Income Support or Jobseekers’ Allowance.

“These people are also experiencing additional financial pressure due to the cost-of-living crisis. Indeed, nearly half of those surveyed in the report people say the cost-of-living crisis impacted on how they organised or paid for the funeral and worryingly 1 in 6 bereaved people said they had to cut back on essential items like food, bills or rent.

“Many of those in receipt of the Funeral Support Payment will still struggle to pay the final bill and may resort to desperate measures, like using a credit card, taking out a loan or even selling belongings.

“Our not-for-profit funeral director, Caledonia Cremation, does provide a direct cremation option which is fully covered by the benefit, with money left over for a follow-up event. However, that type of funeral isn’t what some people want, and we do our best to support everyone to make the choice that is right for them. It is becoming increasingly hard to do so when the cost keeps rising.”

One person who struggled despite receiving the payment is James, who lost his partner Rachelle in 2022. 

James was in receipt of Universal Credit, so was eligible for the Funeral Support Payment. However, he was still left with a massive bill, as he explains:

“Rochelle had contributed to a plan, so as a result I only received 99p from Social Security Scotland. The plan and that payment didn’t come close to covering the full cost of the funeral, and as a result I had to find £2,500.

“The payment doesn’t consider the true cost of a typical funeral, which is high by anyone’s standards.

“I also feel that the Government should consider the situation of those who are in receipt of the benefit. When you are on Universal Credit, £2,500 is a huge amount of money.”

As part of their campaign, Caledonia Funeral Aid are hosting a free online summit at the end of the month. 

John explained: “We are inviting those who work with recently bereaved people, or those who support people experiencing hardship, to an online discussion around the financial support available and what the long-term plan should be.

“We are hosting this event in partnership with The Poverty Alliance and Down to Earth. Those interested can sign up online at the funerals.scot website.”

*Sunlife Cost of Dying Report 2024 https://www.sunlife.co.uk/funeral-costs/

** Funeral Support Payment: high level statistics to 30 September 2023 https://www.socialsecurity.gov.scot/asset-storage/production/downloads/Funeral-Support-Payment-publication-to-September-2023-867995435674.pdf

Charity urges bereaved Scots to seek help before paying high funeral costs

  • SunLife Cost of Dying annual report finds rises in professional fees and send-off costs has pushed the overall cost of dying to £9,200
  • The cost of a basic funeral remains historically high, but has fallen by 0.6% to £3,953 in Scotland.

The recent news that the overall cost of dying has increased to well over £9,000 will be making a lot of people worry how they will pay, should a loved one pass away without any financial plans in place.

However, the Sunlife Cost of Dying Report 2023 https://www.sunlife.co.uk/funeral-costs/ has found the cost of a basic funeral has dropped. This appears to be partly the result of the growing acceptability of simpler funerals and direct cremations.

Despite this, the funeral poverty charity Caledonia Funeral Aid is still advising bereaved people to contact them for support, before resorting to drastic measures such as using loan sharks, fundraising, or selling possessions.

Co-founder and chair John Halliday explains why: “Despite the glimmer of good news here, our relentless fight to try to push down funeral prices will need to continue. It is harder than ever for people facing a cost-of-living crisis to find even the money for a basic funeral.

“We are particularly concerned about the growing problem of funeral directors requiring deposits – we have heard time and time again people turned away from every funeral directors because they don’t have the hundreds or thousands of pounds of cash required for the initial deposit.

“Others take on a huge debt they can’t afford because they feel like there is no alternative. Indeed, the report has found that there has been a rise in the number of people taking out a debt to pay for the funeral.

“At Caledonia Funeral Aid, we provide free advice on how to organise and pay for a funeral, what financial help is available and how to cope with a recent bereavement.

“We offer simple, dignified and cremations through our not-for-profit funeral directors Caledonia Cremation, which we set up in 2018 to support those facing funeral poverty.”

Donna turned to Caledonia Funeral Aid after her friend Adam died earlier this year:

“I approached several funeral directors who turned me away when they heard money was an issue. I was so worried as I wanted to honour Adam’s wishes and give him a decent send-off.

Luckily, I called Caledonia Funeral Aid, and they advised me of more affordable options and the financial assistance that was available. As a result, I managed to organise a dignified and caring funeral for my dear friend. I don’t know what I would have done if I hadn’t had that help.”

With demand for their services anticipated to continue in the current financial climate, John has issued an urgent callout to the public for help:

“We are charity-owned, and only have finite resources, so we are looking for kind-hearted Scots to join our team as volunteer funeral and bereavement guides.

“It may sound daunting, but the work we do is both important and rewarding. Dealing with a bereavement can be an overwhelming and distressing experience, especially when finances are an issue, so the clients we support really do appreciate having us to turn to, during these tough times.

“So, if you are bereaved or looking to make a real difference to people’s lives, please do call our advice line now 03000 113301. Our team are compassionate, friendly and will be there for you for as long as it takes.”

https://www.sunlife.co.uk/funeral-costs/

Sunlife-2023-reportDownload

New bereavement support service launches in Edinburgh

Times are extremely hard for many now, especially those who have lost someone during the last two years. 

The mental health of the bereaved has particularly suffered during these uncertain times, so a not-for-profit funeral director has launched Caledonia Funeral Aid which aims to provide an extra support system for recently bereaved people in Edinburgh. 

Caledonia Funeral Aid is an extension of the work of Caledonia Cremation – a social enterprise funeral directors set up to fight funeral poverty by offering not-for-profit cremations.

Since their inception in 2018, they have been supporting Scots facing the additional stress of not being able to afford a funeral. During that time, the social enterprise found the support required wasn’t just financial, but practical and emotional too.  So, they have extended their offer by launching Caledonia Funeral Aid.  

Co-founder John Halliday explained: “We have learnt that just providing a not-for-profit funeral wasn’t enough – people needed more. By setting up Caledonia Funeral Aid– we will provide full emotional and practical support to the recently bereaved. 

“We will provide a trained coach and funeral support worker to help Edinburgh residents who have experienced a bereavement in the past 6 months. This support will focus on their emotional needs. We will deeply listen to their needs and give them a safe and trusted place in which to discuss their loss and the impact on their lives. 

“We are delighted to launch this initially in Edinburgh, thanks to funding from Edinburgh Community Mental Health and Wellbeing Fund. However, our aim is to launch this nationwide very shortly. 

“With the average cost of a basic funeral sitting at £4,000, we receive calls from many people, especially those experiencing in-work poverty or students, who just can’t afford that amount. They don’t qualify for financial help and have nowhere to turn.  We never turn anyone away and through the fundraising efforts of Caledonia Funeral Aid we hope to extend our help to even more bereaved Scots nationwide. 

“We accept donations through our website and our team are also doing all the Kiltwalk this year so anyone wo wants to help us support more bereaved Scots can find a way to do so online.” 

Those wishing to access the support can call 03000 11 33 01. 

Funeral directors still not being clear about their prices, Which? research reveals

Funeral directors are not disclosing the prices of their services transparently, despite being put on notice by the Competition and Markets Authority (CMA) that changes were needed, Which? research has found.

A lack of transparency about the cost of their services puts vulnerable customers at risk of paying inflated prices and could lead to many more people spending over the odds. The CMA is currently consulting on the details of new requirements, which it is proposing will come into effect in September 2021.

Fears over vulnerable customers paying inflated prices led the CMA to investigate funeral directors’ costs in 2018.

Its final report, published in December 2020, stated that “ongoing uncertainty as to the future path of the pandemic” meant that it has “not been feasible to design and calibrate the price controls” that it had been considering.

However its proposed remedies did include a requirement for funeral directors and crematorium operators to disclose prices in a manner that will help customers make more informed decisions. 

But the consumer champion’s research from February into 112 funeral directors found that a quarter (29) of them didn’t include pricing on their websites. 

Of those that did show their prices, information was often not presented in a consistent way, making it difficult for consumers to understand how their money was being spent.

Around 40 funeral directors showed package costs with a description of what’s included but provided no cost break down. Only 18 showed itemised price lists. 

Concerningly, even those signed up to the National Association of Funeral Directors (NAFD), members of which sign up to a code of practice that expects them to disclose prices online, weren’t always transparent with their costs. Of the NAFD members Which? analysed, a third (11) didn’t disclose their pricing online. 

A spokesperson for the NAFD said: “We are reviewing the CMA’s draft Order in respect of online pricing to make sure we align our online member directory capabilities to the Order.

“We are likely to introduce enforcement on those provisions of our new Code in September, at the same time as the CMA’s requirements become law.”

The CMA has stated that a remedies package will be introduced by legal order and that the statutory deadline for this being made is 17 June 2021.

Measures include letting those arranging a funeral know in advance the price they will pay and the terms of their business, and what services they will be getting for that price. Standardised price lists and additional option price lists should also be made clearly available in funeral directors’ branches as well as online if they have websites. 

The CMA has said it will be keeping a close eye on the sector to ensure the remedies are properly implemented. Which? believes that a lack of price transparency from funeral directors so far suggests this monitoring will be essential to ensure better outcomes for consumers. 

Jenny Ross, Editor of Which? Money, said: “Organising a funeral is already a stressful time for families – that stress shouldn’t be compounded by the fear of paying inflated prices. 

“Our research shows that many funeral directors are simply not showing their costs transparently.  

“To avoid more vulnerable people paying more than they should, funeral directors must do the right thing and be up front about the cost of their services.”

Thousands of Scots get support to cover funeral costs

Almost 6,000 people received a Funeral Support Payment in its first full year, according to statistics published today.

Since it started making payments last September, Social Security Scotland has paid out £8.7 million to people who have lost a loved one. 

Eligible applicants currently receive an average of £1,761 to help with the costs of a burial or cremation and expenses such as travel and flowers.

Funeral Support Payment replaced the UK Government’s Funeral Expense Payment in Scotland.

Social Security Secretary Shirley-Anne Somerville said: “Coping with the death of a loved one is one of the most difficult events any of us can face – it’s even harder when there’s extra stress trying to find the money to pay for a funeral.

“It’s important that we support people at key times like this. We want to do what we can to stop those who are dealing with grief having to get into debt too.

“The economic impact of COVID-19 means many more people are receiving Universal Credit or other qualifying benefits than previously, which means they could also be eligible for the Funeral Support Payment.

“I’d encourage anyone who thinks they might qualify for this important financial support to find out more and apply. People can apply for the payment up to 6 months after a funeral has taken place, although if you could not apply within this timescale because of COVID-19, we’ll accept your application as on time.

“Making sure that everyone gets the financial support they are entitled to is a basic step in putting dignity and respect at the heart of social security in Scotland.”

  • The payment includes a flat rate for any other expenses – £1,000 for the majority of applications and £122.05 if the person who died had made provision for their funeral through a funeral plan. It can also cover some travel, document, and medical costs
  • Clients can find pre-application advice which includes eligibility and award amounts and apply at mygov.scot/funeral-support-payment
  • Clients can choose to apply online, via a paper application form or by calling our specially trained Funeral Support Payment team on 0800 182 2222.

Edinburgh Funeral Director welcomes support payment increase

Bereaved families in Edinburgh will soon have greater financial support when planning their loved ones’ funerals, as the Scottish Government recently announced an increase to its Funeral Support Payment.

The Funeral Support Payment covers burial and cremation fees in full, however, a discretionary fund called ‘other expenses’ must cover several costs, including funeral director fees, celebrant’s fees, flowers and the cost of purchasing a coffin.

For the first time since 2003, the Funeral Support Payment for ‘other expenses’ will increase from £700 to £1000 from 1st April this year, supporting thousands of Scottish families at their time of need.

Funeral costs have been shown to have a disproportionate impact on low income consumers across the UK, with funeral costs potentially accounting for over a third of the annual expenditure of those on the lowest incomes.

Although inflationary increases to the £700 payment were scheduled to commence in Scotland from this year, the previous £700 cap equates to over £1,100 in today’s prices.

Since funeral costs have risen since 2003, the real value of the benefit for families in need has reduced by 35 per cent. In 2016, evidence was presented to a Scottish Government consultation that calculated that the benefit would need to increase to £1,500 to fully cover the costs incurred by the majority of Scottish families.

Welcoming the announcement, Edinburgh Funeral Director, Mark Porteous, Company Director at Porteous Funeral Directors, said: “There are many people in our community who rely on the Funeral Support Payment, and we are thrilled that the benefit has increased for bereaved families in Edinburgh.

“This benefit makes a real difference to bereaved families, and the increased payment will further enable them to have a dignified ceremony for a loved one. We view Funeral Support Payment funerals as a commitment to our community, and the increased payment will help keep these services viable for years to come.”

Porteous Funeral Directors has multiple locations across Edinburgh, including those that have been identified as the most deprived: Great Junction Street, Leith, Moredun and Craigour, Bingham, Magdalene and The Christians, Muirhouse, Restalrig and Lochend, Niddrie.

The Scottish Government’s announcement follows a similar commitment from Westminster to increase the funeral benefit in England and Wales from £700 to £1000. However, the Scottish Government has gone one step further in stating that the increase will be uprated, which will see the value rise year-on-year to allow for inflating funeral costs.

Gordon Swan, Director of Communications at leading funeral plan provider Golden Charter, added: “Golden Charter has been calling for an increase in Funeral Support Payments for some time, recognising that the benefit set in 2003 has gradually fallen well below the costs faced by families who have lost a love one.

“As a Scottish-based company, we know the positive impact this increase will bring to families at a very difficult time.

“We provide funeral planning services across the whole of the UK, and would like to see the Department of Work and Pensions also uprate this important benefit, extending the future security offered by that commitment to all bereaved families across the UK.”

It is anticipated that up to 5,000 Scottish families will benefit from this enhanced benefit each year.

Community Renewal praises Scottish Government’s measures to tackle funeral poverty

From tomorrow, the new Funeral Expense Assistance payment will become available to people who claim certain benefits in Scotland. It is a move by the Scottish Government towards eradicating funeral poverty which has pushed 1 in 7 families into debts of up to £1990.  Continue reading Community Renewal praises Scottish Government’s measures to tackle funeral poverty

Child burial and cremation fees to end

Scottish Government and COSLA have agreed to work together to remove all local authority charges for child burials and cremations.

While most local authorities have already removed their fees, this new commitment – which is supported by Scottish Government funding – will see the removal of their fees consistently and completely across all areas.

Confirming the agreement, Cabinet Secretary for Communities, Social Security and Equalities Angela Constance said: “The death of a child is one of the most tragic experiences that anyone can go through. 

“At such difficult times, it is important that we look to support parents and families.  We have been actively looking for some time at ways in which we can further support bereaved parents in Scotland with funeral costs.

“Most local authorities do not charge child burial and cremation fees but the picture across Scotland is a mixed one, as local authorities introduce adult burial and cremation charges at different ages across the country.

“We agree with COSLA that no family should have to pay to bury or cremate their child.  I am therefore delighted to confirm this agreement between the Scottish Government and COSLA.”

Cllr Elena Whitham, COSLA spokesperson for Community Wellbeing, said: “Scottish local authorities have had a long-standing commitment to waiving or discounting their charges for children’s funerals and cremations.

“It is truly awful to have to manage the burden of a funeral or cremation for a child. We are acutely aware that none of us plan for the financial costs because we don’t expect it to happen to our families. For some, any charges can lead to high cost borrowing and financial crisis.

“We are pleased to work together with the Scottish Government to ensure that all local authorities can fully commit to removing their charges for the burial or cremation of those aged under 18.”