Grieving households flip to crowdfunding funerals to cope with hovering prices – as even a easy send-off nears £4,000
Grieving families have been forced to borrow at high rates of interest and crowdfund to cover the surging cost of funerals, new research reveals.
SunLife – which has tracked the cost of funerals for 22 years – said that even a simple attended funeral now costs £3,828 on average, while a more traditional funeral costs £4,510.
Families typically face an extra £1,312 on top of this for a send-off to cover memorials, flowers and catering for a wake, taking total costs to £5,140 and £5,822, respectively.
The Cost of Dying report said this has left 15 per cent of families falling short to the tune of £2,365 on average, and facing ‘financial concern’.
Almost two in five of those families used existing savings and investments to make up the full amount, while almost one in four opted to pay the funeral director in instalments.
Meanwhile, 12 per cent of those who faced financial difficulty crowdfunded to meet funeral costs – up from 6 per cent in 2024
However, a handful were forced to turn to unscrupulous lenders to raise the amount. The report said 8 per cent of those who experienced financial concern borrowed funds from an unregulated lender, such as a loan shark, to afford the funeral.
Families are skipping extras such as limousines to keep send-off costs to a minimum
Other common methods of raising funds included putting the outstanding amount on a credit card, borrowing money from family or friends, and selling belongings.
Lindesay Mace, funeral poverty charity Down to Earth comments: ‘It is heartbreaking to learn the use of crowdfunding has doubled for the second-year running.
‘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.’
The cost of a traditional funeral leapt by an inflation-busting 5.3 per cent last year, the biggest increase in a decade. Funeral costs are up 146 per cent since the Cost of Dying report launched 22 years ago.
Funeral directors blame the rise in prices on higher staff costs due to the rise in employer National Insurance contributions and rising prices for coffins and cremation and burial fees.
The climb in prices means so-called simple attended funerals are now the most common type of goodbye, the report found.
These include the same services as a traditional funeral – such as a hearse and fees for the burial or cremation – but without a handful of extras, such as limousines.
The most expensive simple funerals are in London, at £4,987 on average, followed by the East & West Midlands at £4,222, and the South East and East of England, at £4,173.
The cheapest are in Northern Ireland, at £3,105, followed by North East England at £3,411 and Wales at £3,459.
It is the first year SunLife has tracked the cost of these basic services and comes as the high cost of funerals is making them far more popular.
Mark Screeton, the company’s chief executive, said: ‘We are seeing more people turning to simple attended funerals, a modern middle ground between traditional and direct options, allowing families to celebrate their loved one’s life without overspending.’
Inflation-busting rise in funeral prices
The Cost of Dying report drills down into the rising cost of a send-off for loved ones.
Traditional attended funerals – previously the most common type – now cost £4,510.
This is 146 per cent more than when the report launched 22 years ago and well above inflation of 82 per cent.
The cost could soar by a further 17 per cent between 2025 and 2030, projections by SunLife show.
Traditional funerals cover the same features as a simple funeral, but with a handful of extras such as limousines and a mid-range coffin.
There are extra costs on top of the funderal itself though, however, for those who want to hold a wake to celebrate someone’s life, these take the total cost of a traditional funeral to £5,822.
SunLife says: ‘These additional elements aren’t chosen as often today as consumer behaviour changes and organisers look for ways to save money. However, the figures continue to give an indication of funeral cost inflation.’
Funeral directors blame their own rising costs for the price rises.
One quoted anonymously in the report, said: ‘Coffin manufacturers have generally put their fees up by 4 per cent to 7 per cent year on year. We had all the issues with worldwide logistics, with the container ships and air freight costs going up. These manufacturers that import parts to build a coffin got hit.’
But while funeral bills have jumped, the cost of skipping a service has gone up even more.
SunLife, which interviewed 100 funeral directors across the UK and around 1,500 people who recently organised a funeral, found the price of direct burials rose the most last year – some 6.6 per cent.
These are burials without a service. Instead, the deceased is taken straight to a cemetery and buried – making it lower priced than a burial with a service. They account for just 2 per cent of goodbyes, however.
The most popular type of service is an attended cremation. SunLife said these remain the most cost-effective option at £1,628 on average. It added that 86 per cent of those who opt for a direct cremation still choose to hold a memorial, wake or celebration of life, bringing their full spend to £2,949.
Chasm in funeral prices between regions
It’s not just the type of funeral that can drive the cost up – where you live can too.
A huge gap in the price of goodbyes has emerged, with simply attended funerals costing a huge 58 per cent more in the most expensive region in the country compared to the least.
London is unsurprisingly the most expensive spot with send-offs totting up to an average of £4,897 but the Midlands trails close behind at £4,222.
At the other end of the scale, however, is Northern Ireland at just £3,105 while in the North East of England costs are £3,411.
Costs in the South West are closest to the national average at £3,892.
Burial plots are typically the biggest driver between regional differences in funeral costs as land is sold at a premium in the South East.
Wages in the region also tend to be higher than those elsewhere to account for the higher cost of living, which could add to the gap.
Talk to loved ones about your funeral wish (and costs)
It can be uncomfortable to talk to loved ones about death but having a frank and open conversation can prevent your loved ones wondering about your wishes – and money being wasted.
Some 53 per cent of those organising a funeral don’t even know if their loved one would like a burial or cremation, the report shows.
It’s not just the emotional burden that you can alleviate but your family can save money, too.
Some 30 per cent of those surveyed by SunLife want their family to spend as little money as possibly on the funeral whereas just 3 per cent want a lavish or expensive funeral.
Rebecca Peach, of funeral planning website The Farewell Guide, says when someone declares wants and wishes it tends to drive the price down.
Those who knew loved one’s preferences saved £335 on average compared to those who didn’t know any of their preferences, SunLife says.
Ms Peach also recommends talking about elements that reflect your personality to make talking about funeral plans easier.
She says: ‘Focus on the fun elements of a funeral, such as music or clothing choices. Look at the memorable side or the celebration of a funeral.’
Experts urge families to talk to each about funeral wishes to drive down prices
If you think it will be awkward to discuss your wishes in person, Ms Peach recommends emailing it to your loved ones. While they may initially be taken aback, an email means there’s a record of what you want at your funeral and prevents disputes.
You can also write a letter of wishes, which accompanies your will. This includes how you want your assets distributed but can also state if you want to be buried or cremated and the kind of service you want. Unlike a will, it’s not legally binding.
Passing on these key funeral decisions will alleviate the emotional – and financial – burden for your family and ensure you have the send-off you’ve always wanted.
Mr Screeton explains: ‘Having conversations about both what we want for our funerals and how they will be paid for can make a real difference, emotionally and financially. Planning ahead means families can create a meaningful farewell without unnecessary stress or cost at an already difficult time.’
Other tips from funeral directors to reduce costs are to cut down on flowers, not use limousines and reduce catering costs.
They say travel in your own car, or have the wake at home instead of hiring a venue.
