A growing number of grieving families are turning to crowdfunding and loan sharks to pay for funerals as the cost of a traditional service saw its biggest annual increase in a decade, now averaging more than £5,000.
The cost of a modest funeral jumped 5.3% to £4,510 last year, SunLife’s latest Cost of Dying Report said. That's without catering or a wake.
The simplest 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.
When you realise you can't even afford to die! I asked the price of a memorial plaque and this is what I got. This does not include the cremation. pic.twitter.com/Za5CMJ8oiC
— mynameisLiz (@ireallyamahuman) January 5, 2026
Just 42% save enough to cover the full cost, leaving loved ones to bridge the gap.
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.”
It was fantastic to see @mariecurieuk's Make Sadmin Simple petition featured as the Campaign of the Week in the @MoneySavingExp newsletter yesterday. 💛📰📢
Too many terminally ill and bereaved people end up feeling stuck, faced with untrained staff and poor processes. pic.twitter.com/qIMHsOS0Q8— Sarah (@SarahMiddlemiss) October 23, 2024
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.”
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What is the DWP Funeral Expenses Payment?
It's worth noting the DWP Funeral Expenses Payment - a government scheme to help people on low incomes who are responsible for arranging a funeral.
It’s aimed at those receiving specific benefits, helping to cover essential funeral costs to ensure a dignified farewell without overwhelming financial strain.
The payment is not intended to cover the entire cost of a funeral but provides significant support for key expenses.
It’s available to residents of England, Wales, and Northern Ireland. In Scotland it's known as the Funeral Support Payment.
The amount awarded depends on individual circumstances, including any funds available from the deceased’s estate or other sources like insurance policies.
Importantly, any payment received may need to be repaid if funds are later released from the deceased’s estate, though personal items or a home left to a surviving spouse or civil partner are not counted.
Who is Eligible for the DWP Funeral Expenses Payment?
You or your partner must be receiving one of the following qualifying benefits:
- Universal Credit
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Pension Credit
- Housing Benefit
- Child Tax Credit
- Working Tax Credit (with a disability or severe disability element)
- Support for Mortgage Interest loan payments
Additionally, you must have a specific relationship with the deceased, such as being their partner, parent, or close relative, and it must be reasonable for you to take responsibility for the funeral costs.
The easiest method is to call the DWP Bereavement Service helpline at 0800 151 2012 (or 0800 731 0453 for Welsh language support), available Monday to Friday, 8am to 6pm.
Alternatively, you can download and complete the SF200 claim form from the GOV.UK website
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