Funeral costs causing financial difficulty for one in five families

4th February 2025

New data from SunLife has shown that one in five (18%) families have struggled to find the money to pay for a loved ones’ funeral caused notable financial difficulties. This group have to find an average of £2,370 to cover the cost with a quarter of those with notable financial concern report struggling to pay essential bills or rent, and 34% have to cut back on essential items such as food.

To make up the shortfall, one in four (24%) use a credit card, and 12% take out a loan to cover the cost. On average, this group take on £3,109 of debt. A further one in four (23%) borrow from a friend or relative, while one in five (19%) sell belongings to cover the cost.

3 in 4 (75%) say paying for a funeral impacted their mental health, while 60% said it impacted their physical health. For some, costs may be recouped from the deceased’s estate once it has been administered. But, as a funeral typically takes place before probate, families may still be left struggling to cover the cost in the short term.

62% of people do not make adequate provisions to cover the full cost of their own funeral, leaving some families struggling to find the rest of the money. The rising cost of funerals, combined with the fact only one in three  people put enough provision in place to pay for them, is leaving some families with debt and impacting their mental and physical wellbeing.

The study also found that the cost of a simple, attended funeral has risen 3.5% in a year to £4,285, while an unattended cremation (also known as a direct cremation) has risen 6.7% to £1,597.

The report also shows that while two thirds (68%) of people do make provisions to pay for their own funeral, only 38% leave enough to cover the whole cost. This lack of provision means that, on average, families are left to cover a shortfall of £1,695.

While it is sometimes possible to release money from the deceased’s bank accounts for funeral costs before probate has taken place, a third of families are still left to cover at least some of the costs themselves, with 10% taking on debt to do so.

33% of people who recently organised a funeral say the cost-of-living crisis impacted how they organised and paid for it.

One in eight (13%) say they had to cut back on certain aspects of the funeral because they couldn’t afford it, and 10% say the cost of living crisis added an extra layer of stress.

One in five (22%) said paying for the funeral impacted their own standard of living, including 8% who had to cut back on essential items and 6% who struggled to pay essential bills.

Mark Screeton, CEO at SunLife said “Funeral costs have risen dramatically in the 21 years we’ve been tracking them. Back in 2004, the average cost of a simple, attended funeral was £1,835. Today, it stands at £4,285 – a staggering 134% increase, far outpacing inflation over the same period.

“Couple this with the ongoing cost-of-living crisis and the fact that many people don’t leave enough provision to cover their funeral – or even share their preferences – and you have a situation where grieving families can be left struggling with debt at an already difficult time.

“Most of us have an idea of what we’d like for our own funeral, but we rarely communicate it. Our study shows just half of funeral organisers know whether loved ones wanted a burial or cremation, while other preferences are even less known. And with over £1,000 difference in cost between the two options, this can bring an extra layer of financial pressure when loved ones are worrying about getting it right.”