The price of a simple funeral has reached a record £4,285, with higher funeral and crematorium costs in addition to staff wages driving up costs.
The average price has risen by 3.5 per cent in the past year, putting it above the previous pre-pandemic record of £4,194.
Costs remained contained during Covid-19 restrictions, when people opted for direct cremations or limited ceremonies with few mourners.
A later rule change, which forced funeral directors to display price menus, also reduced the cost of farewells for loved ones.
A basic funeral includes a cremation or burial, all funeral director’s fees, a mid-range casket, a funeral limousine, a doctor and a minister or celebrant.
The average price has risen 134 percent since 2004, when financial services company SunLife began conducting an annual survey of death costs.
Mourning a loved one: a basic send-off includes a cremation or burial, funeral director fees, a mid-range coffin and one limousine
SunLife says that if costs had risen at the same rate as inflation over the past 21 years, the average figure would have been 75 per cent higher, at £3,211.
The company, which interviewed 100 funeral directors in the UK and around 1,500 people who had recently organized a funeral, found that the price of direct cremations rose the most last year.
The cost rose by 6.6 per cent to £1,597, but it remains the cheapest option.
Direct cremations are carried out without a service or mourners, but the ashes are then returned to a family, allowing them to organize a personal memorial service at a time of their choosing.
SunLife research showed that families are more likely to choose this type of farewell if they discussed funeral wishes with a loved one before their death.
About 57 percent of families who opted for a direct cremation said they did so at the request of the deceased, while 30 percent said it was easier to organize and 14 percent preferred to spend the money on something else.
The company says direct cremations have increased out of necessity during the pandemic, but they have remained popular and now account for one in five of all funerals, up from 14 percent in 2020 and 3 percent in 2019.
SunLife found that the cost of a full shipment rose by 1.4 percent last year to a record £9,797.
That includes a memorial service, obituary and funeral notices, flowers, order forms, limousines, the location and catering for a wake, plus hiring a professional to manage an estate.
In terms of regional price differences, London, the South East and the East of England remain the most expensive places to have a funeral, while Northern Ireland is the cheapest.
SunLife says funeral costs have risen in seven out of 10 regions this year – see below.
“We speak to hundreds of funeral directors every year as part of the Cost of Dying Report research, and they tell us that funeral costs are rising faster than inflation, for a combination of reasons,” said Jordan Flynn, research manager at SunLife.
‘The main reason cited is the rising costs for cremations, burials and associated services, caused by limited burial space and higher energy costs for crematoria. “60 percent of funeral directors say rising fuel prices are the main reason for the rise in crematoria costs – and local councils are increasing their costs to make up for bigger losses.”
‘Other third party costs and overheads, such as construction costs and wholesale coffin prices, are also driving the price increase, along with recruitment and staffing issues in the funeral industry.’
Flynn adds that the biggest differences between regions are the cost of a funeral. A double depth plot costs an average of £595 in Northern Ireland, but £4,322 in London.
SunLife’s report shows that one in five families experienced financial difficulties paying for a funeral.
A third in this position fall back on savings and investments, while around a quarter put it on a credit card, a similar number borrow the money from a friend or family member, and one in five sell assets to cover costs .
The company’s survey of funeral directors shows that 47 percent have noticed an increase in the number of relatives shopping around and receiving quotes from different providers.
However, about 63 percent of people who have organized funerals said they did not compare prices between companies, and 45 percent said their deceased loved one had specified which funeral director they wanted before their death.
How to reduce funeral costs
Ways to keep the price manageable include a cheaper casket, spending less on flowers and a home wake, SunLife’s report said.
Other budgetary measures include shopping around for quotes, choosing not to embalm, opting for direct cremation, not renting a hearse or limousine and not having service order cards.
The top tip from funeral directors is to cut back on flowers, followed by not using limousines and reducing catering costs.
They say that instead of spending hundreds of pounds on flowers, everyone should give a simple tribute and go to a local florist instead of using the funeral director’s services.
SunLife also asked families who had organized funerals in the past four years for their money-saving tips. Here you will find a selection of their comments from the report.
‘Embalming. We didn’t know we didn’t need it and didn’t understand what it was and what it would do.”
‘Death and funeral notices in local newspapers. No one saw them anyway. That’s not how things go these days.’
‘Buy so many flowers. I didn’t actually need them because many people had brought their own flowers.’
“Too many copies of the death certificates.”
‘Renting two limousines – only one was needed.’
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