Funeral costs have increased to more than £4,100 on average with families “struggling to cover the cost”, according to new research.
Financial services firm SunLife reports that funeral costs have increased at nearly twice the rate of inflation in its new Cost of Dying report.
The average funeral now costs £4,141 which is up 4.7 per cent year-on-year and 126 per cent since 2004.
With this price hike, funeral costs have increased under the higher rates of inflation the UK has seen over the past year.
Inflation has pushed the price of goods and services up
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Despite this, the cost of a basic funeral has risen by 126 per cent which is 54 per cent than the rate of inflation over same period.
If funeral costs had risen at the same rate as inflation in the UK, the price would now be more than £1,000 lower on average.
According to SunLife’s report, the total cost of dying jumped by five per cent to £9,658 in 2023. This amount includes send-off costs and probate fees.
This is the highest figure ever and means that the overall cost of dying has risen by £458 year-on-year.
SunLife’s CEO Mark Screeton noted that the cost of a basic funeral has jumped by 126 per cent since 2005, despite costs falling in 2021 and 2022 due to the pandemic.
He said: “Combine this with the fact that most people do not leave enough money behind to pay for their own funeral and it is understandable that so many families across the UK are struggling to cover the cost.
“However, there are things you can do to make funerals more affordable. For those organising a funeral now, our report has lots of tips from funeral directors and those who have recently organised a funeral on how to cut costs.
“For example, more and more people are choosing a direct cremation, followed by a celebration of life held at home. The average cost of direct cremations has dropped once again – now at £1,498 – over £2,000 less than a traditional cremation.”
SunLife shared how households can help slash the cost of funeral arrangements
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The funeral expert also recommended families hold a home wake, have a cheaper coffin and spend less on flowers to slash costs.
Mr Screeton also suggested that families have a conversation about funeral plans as early as possible so they can know what they want to spend money.
If households have this talk as early as possible, they may be able to prepare for the upcoming financial cost.
“You may also wish to make some provision to cover your funeral costs so that when the time comes, your loved ones are not having to worry about money at an emotionally difficult time,” he added.
