Cost of a simple funeral leading poor families into debt, MPs warn

The government fund to help poor families manage the cost a “simple” funeral is not sufficient for even a basic ceremony, MPs have found.

A new report by the Work and Pensions committee published today shows that the allowance provided by the government to support families on low incomes has not risen in over a decade, even though the cost of a funeral increased by £140 last year to an average of £3,702.

The Social Fund funeral Payments (SFFP) – a means-tested benefit – has been frozen at £700 since 2003.

The amount of support claimants can receive to cover the cost of a grave and burial fee, and a crematorium fee is uncapped, but the other costs associated with funerals – such as a coffin, flowers, funeral director fees and a hearse – must be covered by the £700 fund.

Even "simple" funerals cost over £1,200 now, the committee said.

The report, entitled Support for the Bereaved, recommends that the Department for Work and Pensions negotiates and agrees the reasonable cost of a simple funeral with the relevant industry bodies and then adjusts SFFP accordingly.

The current system requires applicants of SFFP to commit to the expense of the funeral before having a clear idea of whether they are eligible for help. This is leading some claimants into unforeseen debt, the report said.

The cross-party committee heard of "distressing circumstances", including families who were denied their loved one's ashes because of a shortfall in the final payment.

Labour MP Frank Field, a Christian, and chair of the committee, said the "opaque and outdated" system was hitting vulnerable people on low incomes.

"Funeral payments for those who can prove they are entitled - and that is a very uncertain and onerous process - now fall far short of covering even a basic funeral," he said.

"We do not want a return to the spectre of miserable 'pauper's funerals'."

So-called ‘pauper’s funerals’ are funerals paid for by the local authority when the deceased dies with no remaining family, or when their remaining family cannot afford to pay for burial or cremation costs.

The report said that individuals should be encouraged to make provision for their funerals and not rely on the state for support.