Who is eligible for the DWP's 'funeral expenses payment' worth over £1,000?
As funeral prices rise, here's how you can get ahead of the costs and find the support you need.
The average cost for a simple funeral has reached a record £4,285, with one in five families now struggling to cover the sum.
According to the 21st SunLife Cost of Dying report, paying for an attended burial or cremation, funeral director, doctor, celebrant fees, a coffin and limousine has more than doubled from £1,835 in 2004.
The report also says that the overall cost of dying – including the costs of a full send-off costs and probate fees – reaching £9,797.
And prices are set to rise once again next month. From 28 February, most funeral providers will notch up their prices to reflect the rising cost of inflation in line with the sector's end of financial year.
Here's what you need to know about the financial support available for planning a funeral, and some tips on getting ahead of the costs.
What is the funeral expenses payment?
For people who claim benefits and are related to the deceased, help from the government is available.
Matthew Sheeran from Money Wellness – a free money, debt and benefits counselling service – told Yahoo News that financial worries can add “an extra layer of stress at an emotional and challenging time”, so it’s worth checking what you are entitled to.
Sheeran recommends looking into the DWP’s funeral and expenses payment, which are available in England, Wales and Northern Ireland (a similar benefit is available in Scotland).
The main component of this is the funeral expenses payment (also called a funeral payment), which is provided if you get certain benefits and need help to pay for a funeral you’re arranging.
It can cover:
Burial fees for a particular plot
Cremation fees, including the cost of the doctor’s certificate
Travel to arrange or go to the funeral
The cost of moving the body within the UK, if it’s being moved more than 50 miles
Death certificates or other documents
You can also get up to £1,000 for any other funeral expenses, such as funeral director’s fees, flowers or the coffin.
You (or your partner) must get one or more of the following to be eligible:
Income support
Income-based jobseeker’s allowance
Income-related employment and support allowance
Pension credit
Housing benefit
The disability or severe disability element of working tax credit
Child tax credit
You can still claim the payment if you're also waiting for the outcome of your claim.
"How much you get will depend on your personal circumstances, and any payment you receive will be deducted from money you get from your loved one’s estate if they have anything of value,” Sheeran told Yahoo News.
While the amount will provide some help, he warns that it is unlikely to cover the whole bill.
He said: “You might have to pay up to a third of the total cost of a basic funeral yourself.
“To qualify, you must also have also had what the DWP considers a ‘qualifying relationship’ with the deceased, such as a parent, partner, close friend or relative,” he added.
Added to this, if the deceased had a pre-paid funeral plan, you can only get up to £120 to help pay for items not covered by their plan.
The children's funeral fund
The children’s funeral fund, available in England, can help to pay for some of the costs of a funeral for a child under 18 or a baby stillborn after the 24th week of pregnancy.
“For this, the government contributes up to £300 towards funeral costs such as burial fees, cremation fees and a coffin, shroud or casket. In Wales, the contribution is £500, and parents in Scotland and Northern Ireland are offered £1,000 to help,” Sheeran added.
He also advises looking into several charities and private organisations which offer grants to help with funeral costs.
“The Turn2Us tool can help you find out what’s available and if you qualify,” he added.
How do I choose the plan that works for me?
Outside of government support, there are some budget-friendly funeral planning options to help people get ahead.
Many funeral plan providers offer flexible payment options for those looking to cover their funeral costs. This includes monthly instalments, which usually range from 12 months to 10 years.
Dave Jameson, co-founder of the UK's fastest-growing funeral planning company Aura, told Yahoo News that by buying a funeral plan, people can "have the peace of mind that your family aren't going to pay anything because the cost is locked in".
Jameson said: "We feel really strongly that a funeral plan should cover everything. It should be an all inclusive plan where there are no hidden fees and there’s no chance that your family will be charged for anything extra.
"There are a lot of companies out there that will charge for things like out-of-hours collections, collecting the deceased at a certain time, or if they're not in a hospital. For us, that slightly defeats the point of a plan.
He added: "It’s very important to see if a company aligns with your values. Ultimately, these are the people that will be looking after your family at the most difficult time in their lives."
He also advises:
Making sure that the company is FCA regulated
Reading Trust Pilot reviews, good and bad
Reading reports into funeral providers at Fairer Finance
Make sure you speak to different providers to find out what works for you
Speaking about funeral arrangements can something of a taboo, so framing it in the right way can make the conversation easier.
Jameson said: "After our founder, and my dad, Paul, was diagnosed with a terminal illness, he was determined to help others save money and to have meaningful celebrations.
"Funeral wishes can be positive if they’re broached through the lens of ‘how would you like your life to be celebrated?’"
Michael Forsyth, head of funeral plans at Co-op Funeralcare also added that by thinking about your funeral wishes early, you can save costs.
He told Yahoo News: "There is still a taboo about later life planning and especially funerals, so many people don’t talk about or plan their funeral at all, and this can leave their loved ones financially unprepared when the time comes."
By planning ahead, Jameson said, loved ones also have more of a say in what their funeral will look like and how they want to be remembered.
"For families who haven't had the chance to plan, their first port of call will be to go to a funeral director who – a lot of the time, but not all of the time – will sell something more expensive than what was needed. In that time where someone’s grieving, they’re not in a position to make good decisions.
"That pre-planning is really really important, that sharing of wishes, so that there's clarity and money can be saved," he added.
