Understanding Funeral Payments in the UK

What are Funeral Payments?

Funeral Payments, also known as Funeral Expenses Payments, can be used if you don’t have enough money to pay for a funeral. In 2023, the average cost of a funeral in the UK was £4,141. The Sun Life Cost of Dying Report says this was a 4.7% increase on 2022.

If you have a low income or you’re receiving benefits, you may be able to apply for funeral expenses help from the government.

How can a Funeral Payment help?

A Funeral Payment can go towards a range of costs you must pay to plan and arrange a funeral. How much money you receive will depend on your circumstances. There’s a range of different costs it can cover. These could include travel to a funeral and the cost of death certificates.

The table below shows how Sun Life found prices have been rising.

The cost of a funeral

Importance of Funeral Payments

The majority of people – 70% – put money away for their funeral, but just 54% save enough to cover all the funeral costs, Sun Life found.

A Funeral Payment can help. But they’re not available to everyone and the amount of money available depends on your circumstances. Any money left from the deceased person’s estate may also be used to pay back a Funeral Payment.

Who is eligible for Funeral Payments?

To be eligible for a Funeral Payment, you will need to be receiving certain benefits. You usually need to be the partner or parent of the deceased.

What benefits are required for Funeral Payments?

To receive financial help for funerals from the government you, or your partner, must be receiving, or have applied for, one of the following means-tested benefits:

• Universal Credit
• Income Support
• Income-based Jobseeker’s Allowance
• Income-related Employment and Support Allowance
• Pension Credit
• Housing Benefit
• The disability or severe disability element of Working Tax Credit
• Child Tax Credit

You may also be able to claim if you have a Support for Mortgage Interest loan.

You can still claim Funeral Expenses Payment if you’ve applied for these benefits and you’re waiting to hear about your claim.

The eligibility criteria for Funeral Payments

To qualify for this type of government funeral support the funeral must be in the UK, the European Economic Area (EEA) or Switzerland.

There are also rules around your relationship with the person who has died, as the table below shows.

Rules around claiming a Funeral Payment

For Funeral Payments, a partner is defined as:

• Someone you lived with who was your husband, wife or civil partner or a person you lived with as if you were a married couple
• Someone you lived with as if you were a married couple immediately before you or they went to live in a care home
• A married couple or civil partners and living in the same care home

How can Funeral Payments help?

You can use a Funeral Payment to pay for arranging and holding a funeral for a loved one. One in five families experience notable financial concerns when paying for a funeral. On average, they have to find almost £2,716 to cover the costs, the latest Sun Life Cost of Dying Report says.

What expenses are covered?

A Funeral Payment can go towards some of the following costs:

• Burial fees
• Cremation fees, including the cost of the doctor’s certificate
• Travel to the funeral
• The cost of moving the body within the UK, if more than 50 miles
• The death certificate and any other documents

There is also up to £1,000 available to put towards other funeral expenses, including the funeral director’s fees, flowers or the coffin.

What is not covered?

A Funeral Payment is not designed to cover all of the costs of a funeral. There is no set amount either – the money you may receive depends on your circumstances. When deciding how much money you might get, the Department for Work and Pensions (DWP) will look at the following:

• The size of the deceased person’s estate
• If there are any life insurance policies in place
• If the person had a funeral plan – if so, you can only get up to £120 to help with costs not covered by this

The Funeral Payment application process

You can apply for a Funeral Payment over the phone or by post. The application must be made within six months of the funeral taking place. The money will be paid to you if you have already paid for the funeral. If you haven’t paid yet, the money will go straight to the person providing the funeral, such as the funeral director.

How to apply for Funeral Payments

If you meet the eligibility requirements, you can apply for a Funeral Payment by calling the Bereavement Service helpline on 0800 151 2012 if you live in England or Wales.

You can also apply by post. You will need to download and print the SF200 form and post it to the following address:

Freepost
DWP Funeral Payments

If you live in Northern Ireland you will need to apply via NI Direct and if you live in Scotland you can apply via My Gov Scot.

What documents are required?

When you apply for a Funeral Payment, you will need to include the following information for both you and the person who has died:

• Your relationship to the deceased
• National Insurance number
• Address and phone number
• Details of any benefits
• Where the funeral will take place
• Details of any surviving children or parents
• The cost of the funeral

Is there a deadline for applying?

There is a six-month deadline, after the funeral, for claiming Funeral Payments. If you have an invoice or a signed contract from a funeral director, you can make a claim before the funeral. If you receive Universal Credit you will need to wait until your next payment before you are told if you can receive a Funeral Payment.

How to cut the cost of funeral expenses

Funerals are expensive but there are lots of ways to reduce the amount you spend. The majority of funeral directors – 93% – say people spend more than they need to, Sun Life found. Here are some of the best tips to keep costs down.

How to choose affordable funeral options

A funeral is a way for loved ones to come together after someone has died and by keeping things simple you can cut costs. This can include the following:

• Compare costs and shop around: there are lots of elements to a funeral, don’t choose the first option you see and always compare prices and services.
• Spend less on the extras: from flowers to head stones, each extra item will increase your budget.
• Ditch the freebies: you don’t need free drinks and you don’t have to serve a full meal at the wake either.
• Choose a cheaper coffin: there’s a huge range of caskets and coffins to choose from. For example, the Co-op offers 24 coffins from £400 to £2,100.
• Cremation instead of a burial: this is a personal choice, but cremations tend to be cheaper than burials.

How to negotiate with a funeral director

Funeral director fees are usually set. They will depend on what you want to include at the funeral. It’s a good idea to make a list of what you are planning and set out a budget. Ask the funeral director what is covered and don’t be afraid to ask if they can add any extras.

You can also ask for the funeral director’s fee to be made in instalments if you don’t have the full amount to pay upfront.

If you’re not happy with the price or the services offered, you’re free to speak to a different funeral director too.

What other financial support is available for funeral costs?

Funerals can be paid for with a pre-paid funeral plan, or through funeral insurance. These are arranged by the person when they were alive and a sum of money is paid out to cover their funeral costs when they die.

The person usually chooses what is covered and once a death certificate is shown to the plan or insurance provider, the money is paid out.

The funeral can also be paid with money from the deceased person’s estate. If there is enough money in their estate, after any debts have been paid off, this can be used to pay for a funeral. The administrator of the estate will be able to arrange for this to happen.

You may also be eligible for a Bereavement Support Payment if your partner has died. The amount of money available depends on your relationship to the person who died, when they died, and when you will reach State Pension age.

The highest payment available is either 18 monthly payments of £350 (or £6,300 in total) or a one-off payment of £3,500. You can make a claim on the phone, by post or online.

Funeral Payments: A summary

Funerals are expensive and if you are struggling to pay for a funeral of a loved one, help with funeral costs is available through Funeral Payments. You must apply within six months of a funeral and meet the eligibility requirements.

If you are receiving one of the benefits required, the money from a Funeral Payment could help towards the cost of a funeral. It can cover lots of different things, from travel to burial costs and provide a valuable financial lifeline at an emotional and stressful time.

FAQs

Here are some of the most common questions people are asking about Funeral Payments.

How much can I receive in a Funeral Payment?

There is no set amount paid for a Funeral Payment. It depends on your circumstances and the financial situation of the person who has died. It usually won’t pay for all of the costs of a funeral.

How does a funeral payment plan work?

A funeral payment plan is taken out before a person dies. The buyer decides how much money they want to cover their funeral costs and then pays a monthly amount towards this. When they die, the money is then released. This is usually to the administrator of their estate.

What happens if someone dies with no money for a funeral?

If someone dies and has no money for a funeral, money may be taken from their estate. If there is not enough money in the estate to pay for the funeral, and loved ones aren’t able to pay, a Funeral Payment is one option to help with the costs.

As a last resort there are public health funerals. The local council steps in for people who have passed away with no next of kin, or whose next of kin, relatives or friends are unable or unwilling to pay for a funeral.