Families turning to crowdfunding and loan sharks to pay for funerals

Bereaved families are turning to crowdfunding and loan sharks to pay for funerals as the cost of a traditional service saw its biggest annual increase since 2016, according to an annual report.

The cost of a traditional attended funeral jumped 5.3% to £4,510 last year, SunLife’s latest Cost of Dying Report said.

A simple attended funeral, which includes the core elements of a traditional service but with fewer add-ons such as a memorial and flowers, is now the most common choice in the UK, costing an average of £3,828.

When teamed with a memorial, catering, venue hire and flowers, total spending on the average funeral rose to £5,140.

Rising prices have been driven by increased cremation and burial fees, higher coffin prices, and increased living costs.

Some 15% of families say they have faced financial hardship paying for a funeral, having to find an extra £2,365 on average.

More than one in 10 (12%) of those facing financial difficulty turned to crowdfunding to cover funeral costs, while 8% reported borrowing money from an unregulated lender or loan shark.

London remains the most expensive place to die, with the cost of a simple attended funeral averaging £4,897.

The report found that those who knew some of the deceased’s funeral preferences were able to save an average of £335 on a send-off compared with those who did not.

Meanwhile, direct cremations, costing an average of £1,628, are now chosen for 21% of funerals – with the majority of cases involving the deceased having planned the arrangements.

However 86% of those who opted for a direct cremation still chose to hold a memorial, wake or celebration of life, bringing the full spending to an average of £2,949.

Some 70% of people make some form of provision for their funeral to ease the burden on those left behind, such as savings, funeral plans, and life insurance, the study found.

Just 42% save enough to cover the full cost, leaving loved ones to bridge the gap.

“Savings” 

SunLife chief executive Mark Screeton said: “Funerals are a deeply personal experience, but our research shows that the cost of saying goodbye continues to rise faster than some families can afford.

“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.

“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.”

Lindesay Mace, co-manager of funeral poverty charity Down to Earth, said: “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 at our Down to Earth funeral costs support service.

“This financial hardship is reflected in growing demand for help, with our helpline seeing a 20% year-on-year increase in people contacting us in 2024/25.

“The Government must act now to ensure the wellbeing of bereaved people facing unaffordable funeral costs.”