Cost of a funeral jumps 4.7% - are there any ways to save?

The cost of living crisis has pinched household finances in recent years, but what about the cost of dying? 

A new report by insurer SunLife has found the cost of dying, which includes a basic funeral service, professional fees and extras such as a wake and flowers, rose 5% to £9,658 in 2023. 

The average basic funeral increased 4.7% to £4,141 but only 54% of people put enough money aside to cover the cost in full. 

Here, Which? explains which funeral-related expenses have increased in price and how you can prepare for the cost.

How much does a funeral cost?

The most expensive type of funeral is a burial at £5,077, which is £1,282 more than a cremation.

But if you choose to have a direct funeral - one without a service - it can be considerably cheaper. 

According to the report, a cremation with a service was the most popular type of funeral (53%), followed by a funeral with a burial (27%) and direct cremation (20%) in 2023. 

Funeral costs by region

Of course the cost may vary depending on where the deceased lived, In 2023 there was a big difference between the most expensive and the cheapest. 

Although London prices decreased from 2022, it is still the priciest place to die, with a funeral there costing £5,171 on average.

Northern Ireland was the cheapest, with the average funeral costing £3,256.

Funeral extras add up

It’s not only the funeral which costs money. Flowers, venue hire and catering are all optional extras which can increase the price.

In 2023 the memorial was still the most expensive cost, although it did decrease in price by £27 compared to the previous year.

Here's what the optional extras cost on average:

• Memorial service: £1,037
• Catering: £476
• Limo hire: £402
• Venue hire: £347
• Flowers: £220
• Order sheets: £111
• Funeral notice: £93
• Death notice: £81

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How to pay for a funeral

Some people choose to put money aside for their funeral while they're still alive.

According to SunLife's report, seven in 10 made provisions for their own funeral before they passed away, but only 54% of those put enough aside to cover the whole cost. 

Below are the most common ways in which people set money aside:

Savings and investments: 44%

You can leave money in your bank or savings account to cover your funeral, but your family may have trouble accessing this when you die. This is because banks and building societies normally freeze accounts when they're informed of the account holder’s death. 

Your family will need the help of the executor or administrator of the estate to access the money.

• Find out more: how to make a will

Life insurance: 43%

Life insurance is a financial product that enables you to leave behind money for your family when you die. A lump sum is paid out when the policy holder passes away. This can be used to replace lost income, pay off debts and cover funeral costs.

Over-50s life insurance, which pays out a fixed lump sum when you die, is often marketed as another way to help your family cover funeral costs. 

Unlike regular life insurance, there’s no medical screening; all that’s checked is your age and smoking status. You choose your monthly premium, which can start from around £5. 

However, there’s a good chance you’ll pay more in premiums than the policy pays out.

• Find out more: best life insurance in the UK 2024

Prepaid funeral plan: 37%

A prepaid funeral plan allows you to pay upfront for your funeral so your relatives don't have to cover the costs. However, these plans won’t cover everything, which may leave your family facing unexpected costs.

Since July 2022, all prepaid funeral providers must be regulated by the Financial Conduct Authority (FCA). This means that should something happen to your provider, you’ll be able to get your money back.

• Find out more: funeral plans explained

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Four ways to save money on funeral costs

Six in 10 of those surveyed reported actively cutting back on certain aspects of the funeral they held to keep costs down.

Here are a few ways to help save money:

1. Shop around

Three in five organising a funeral didn’t compare prices, according to the survey.  

Thanks to a new law, since 2021 funeral directors must display a standardised price list at the premises and on their website, which should make it easier to shop around. 

However, more than half of funeral directors said they had noticed an increase in customers who are shopping around and getting different quotes. And 16% said they had seen an increase in the number of people negotiating a discount. 

• Find out more: funeral costs

2. Cut back on the extras

Choosing a cheaper coffin and cutting back on flowers were some ways those surveyed reduced their costs. 

One funeral director said: ‘Sometimes families can spend £400 to £500 on floral tributes, and they can be in the garden for three to four days before they’re destroyed. It’s best to get a family tribute.’

Other ways to save money include using social media instead of paying for a death notice, and you could also use your own cars, if possible, instead of hiring limousines. 

3. See if you can get extra financial help

People in receipt of certain benefits or tax credits might be eligible for state support for funeral costs. 

The government offers a Funeral Expenses Payment, which covers the cost of a burial or cremation and up to £1,000 in other costs. 

However, if the deceased held a funeral plan, you can only get up to £120 to help pay for items not covered by their plan.

• Find out more: one month left to claim backdated bereavement benefit - are you owed money?

4. Speak to your loved ones

Around half of those surveyed didn’t know if their loved one wanted a burial or cremation, according to SunLife.

As burials can be considerably more expensive, it's a good idea to have these conversations with loved ones while you're alive as it means your wishes will be followed and money won’t be spent on services you don't want.

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