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National Funeral Cost Index Report ARE WE LOSING THE PLOT? Funeral costs and poverty rise as an out of date state support system continues to erode The Royal London National Funeral Cost Index Report 2014 In association with the Institute of Cemetery and Crematorium Management (ICCM) 2 Royal London Group Are we losing the plot? CONTENTS Executive Summary 3 Introduction and summary of research methods 4 Funeral Poverty: The state of the nation 6 A postcode lottery: huge local and regional differences in funeral costs 10 Losing the plot: Future drivers of Funeral Poverty 12 A time for action: Practical steps to tackle a growing problem 14 Appendix: Find the cost of a funeral in your area 16 Royal London Group Are we losing the plot? 3 EXECUTIVE SUMMARY The average cost of a funeral in the UK now stands to future cost pressures that will at £3,551. The average cost of a cremation is £3,163 see funeral costs rise ahead of both inflation and wages in the and the average cost of a burial is £3,933. future. The factors driving up costs include ‘macro’ drivers such as the The picture painted by our continuation of austerity measures All the evidence suggests that the that will see increasing pressure cost of funerals has risen rapidly research is of an increasingly polarised society – divided on local authority budgets and an in recent years, with a resultant increase in the number of deaths increase in funeral poverty (the between those who can and those who cannot afford a funeral, but in the UK in the coming decade problem of people getting in to debt because of demographic trends. and struggling to pay for a funeral). a society that is willing to take on Research commissioned especially funeral debt if necessary when it Micro drivers specific to the funeral for this report* indicates that funeral comes to paying for a funeral. sector will also see increases in poverty now affects almost 110,000 costs. Of particular significance Despite the cost pressures, our people in the UK, with the total among these is the increased cost results show that nine out of ten value of funeral debt amounting to of burials as a result of a shortage UK adults do not opt for a cheaper £142 million. of burial plots in many areas. funeral (only 11% do this). Rather, Our research found that the the desire to give someone a ‘good Experts interviewed for this report majority of people (54%) support send off’ means 35% use their own point out that funeral poverty is the responsible re-use of abandoned savings to pay for it; 28% borrowed often hidden because of the social burial plots to help alleviate money from family and friends stigma associated with not being able this problem. to give a loved one ‘a good send-off’. to pay for it and 20% go into debt People suffer in silence often with using credit cards or loans. Royal London would like to see knock-on effects, for their health and an immediate index linking of Adding to the national picture of work lives that result in further costs the £700 Social Fund Funeral a polarised society is a pattern for public services. Payment for “other funeral costs” of hugely varying costs at the that has been capped since 2003 local level. The data gathered Our research revealed that the poorest and a fundamental review of the for this report by the ICCM UK households spend virtually the whole Social Fund Funeral Payment (from the crematorium and same amount on a funeral as the system. Had the cap increased in cemetery operators) reveals a funeral wealthiest UK households. However, line with inflation (as measured by cost postcode lottery. Charges the poorest households are much the Retail Price Index) since 2003, ranged from a low of £2,859 (for a more likely to be surprised by the cost it would now be worth £966, rather cremation in Belfast) to £6,899 of a funeral, and much more likely than £700. to find it a problem to pay for the (for a burial in Beckenham, Kent). *Royal London National Funeral Cost Index funeral. For example, one in three 2014 Research conducted by YouGov and people in households with an annual If the current picture on funeral Institute of Cemetery and Crematorium income of less than £10,000 had costs and funeral poverty is not Management October 2014, Commissioned by Royal London Group problems paying. bad enough, all the evidence points 4 Royal London Group Are we losing the plot? INTRODUCTION I commissioned this study to understand how people in the UK pay for funerals. I wanted to shed particular light on the issue of Funeral Poverty, and the large numbers of people in the UK who get into financial difficulty as a result of paying for a funeral, or who cannot afford to pay for a funeral at all. Founded in 1861 to help people pay • These pressures have been introduction of death certification for their funerals, this is a key focus resulting in above inflation fees for burials will further impact for Royal London as it continues to increases in funeral costs, the the already costly nature of burials, provide life insurance to people today. Social Fund Funeral Payment potentially making a burial the For the first time, this report brings (the UK’s funeral state safety disposal method for the affluent. together insights from two major net) has been capped for “other pieces of research, and perspectives funeral costs” since 2003 at Given this context, Royal London from a wide range of stakeholders, £700 (intended to contribute to believes a full and fundamental with ideas for how to tackle this costs for Funeral Directors and review of the Social Fund Funeral growing problem, that affects the ministers fees). Today this makes Payment system is required, but most disadvantaged in society when its real term value of the payment there are immediate ways to ease the they are at their most vulnerable. closer to £500. Had the cap pressure. For example, the Fund’s increased in line with inflation cap of £700, in place to meet ‘other Not only do the findings in this (as measured by the Retail Price funeral expenses’, should be index- report suggest that large numbers Index) since 2003, it would now linked to inflation, and adjusted to of people in the UK currently suffer be worth £966, rather than £700. reflect current UK living costs. from funeral poverty, they also Simon Cox – suggest that the problem is set to • The macro trends are combining Consumer Protection increase significantly because of a with many specific challenges Proposition Lead, number of macro and micro drivers: affecting the funeral sector at Royal London Group the moment. These include the • At the macro level, the public sector unsustainability of cemeteries and deficit and austerity measures shortage of burial plots in certain mean that local authority budgets regions; the growth of private will be under continued pressure, crematoria which is having an potentially driving up charges for inflationary effect, either through burials and cremations. Further, the new build taking services away demographic trends will see an from public crematoria without increase in the numbers of deaths reducing their costs, or by private in the UK in the coming decade, crematoria charging rates that adding to the demand placed on are, on average, 10% higher than already stretched resources. public crematoria. The proposed Royal London Group Are we losing the plot? 5 Summary of research methods: The information presented in • Anne Cordon – this report is based on two new Honorary Fellow, Social Policy Research Unit, University of York major pieces of quantitative survey research. On behalf of Royal • Heather Kennedy – London, YouGov surveyed 1,988 Campaigner, Quaker Social Action people who had arranged a funeral • Emma Lewell-Buck – in the last five years. The research MP for South Shields was conducted between 14th and 22nd August 2014. • Poppy Mardall – Founder of Poppy’s Funerals and Independent Funeral Director ICCM surveyed all of the c. 270 crematoria in the UK to ascertain • Tim Morris – their costs for cremation. They Chief Executive, Institute of Cemetery and Crematorium Management also conducted survey research to ascertain the costs of burial at two • Alan Slater – cemeteries in close proximity to the Chief Executive, National Association of Funeral Directors crematoria to allow us to analyse the comparative costs of cremations Royal London Group would like to thank all of the above for and burials. their time and contribution to this report. Finally, contributions were sought from the following experts and stakeholders, both on the nature of the Funeral Poverty problem and potential solutions: 5 6 Royal London Group Are we losing the plot? FUNERAL POVERTY: THE STATE OF THE NATION “People don’t want to talk about Funeral poverty is often a hidden More than one in five respondents funeral poverty. They are more problem, but it affects tens of (22%) said that the deceased open to talking about other thousands of people. In our left no financial provision for the poverty issues, like food banks research, almost one in five (19%) funeral. This figure should be and food poverty. But when it set against an average cost of a comes to burying a loved one, and respondents said that they struggled funeral which is £3,551. giving them a good send off, they to meet funeral costs. This means feel a sense of shame that they that across the UK there are around Chart 1 below breaks down the cost cannot afford it.
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