The average cost of a simple attended funeral in the UK is now at an all-time high of £4,285, representing an annual increase of 3.5% – according to the latest SunLife Cost of Dying report.
Since SunLife’s first funeral cost study in 2004, funeral costs have risen by 134% – compared to an inflation rate of just 75%.
In 2004 – which was the year SunLife started indexing funeral costs – a simple funeral was £1,835. And if funeral prices had risen at the same rate of inflation, the average cost today would be £3,211.
The overall ‘cost of dying’ – which includes full send-off costs and estate fees in addition to the funeral cost – has risen by a smaller rate of 1.4% to £9,79. But that represents a record high.
In 2023 Health & Protection reported that the SunLife Cost of Dying Report found the average cost of dying – which included professional fees, the funeral service, and optional extras like the party or wake – was £9,200 – up 3.8% since 2021.
But costs can vary by as much as £2,000 across the UK.
The highest funeral costs are in London – where the average funeral costs £5,449.
That represents an increase of 5.4% rise on last year, meaning a funeral in London costs 27% more than the average for the UK, and 58% more than in the cheapest region, Northern Ireland.
SunLife said one in five families find themselves in financial difficulty trying to pay for funerals, as only half (56%) of people leave enough money behind to cover the cost.
Cremation
Meanwhile, cremation remains the most affordable option, despite costs increasing by 6.7%.
SunLife said this year, direct cremations – a cremation without a funeral service – have risen for just the second time since tracking began in 2017, up 6.7% from £1,498 to £1,597.
The number of direct cremations swelled during the pandemic – out of necessity – but they have grown and remained popular even in the years after Covid-19 restrictions
Only 38% of people make provisions to cover the full cost of their funeral, causing financial issues for one in five families.
The SunLife Cost of Dying report shows that while 68% of people make provisions specifically to pay for their funeral before they pass away, only 38% put enough aside to cover the whole cost.
One in five (18%) families experience ‘notable financial concerns’ when paying for a funeral; on average, they have to find almost £2,371 to cover the costs.
Most of these use their savings and investments (33%) to pay, but 24% put it on a credit card, 23% borrow the money from a friend or relative, and 19% sell belongings to cover the cost.
Important to talk
Mark Screeton, CEO of SunLife, said: “It’s so important for people to talk more about their funerals, so that loved ones aren’t left to organise things with little idea about what the deceased would have wanted.
“This year’s Cost of Dying Report highlights just how much of a financial and emotional impact not knowing can have.
“A send-off doesn’t need to cost thousands. A direct cremation with a DIY get-together afterwards might be the perfect way to say a personal goodbye to loved one.
“But we know families tend to only choose low-cost options when it has been specifically requested by the deceased.
“So it’s really important that, as a nation, we start talking about funerals, so that we can discuss with loved ones the type of funeral we want and how it will be paid for.
“That way, family and friends aren’t left to make difficult emotional and financial decisions once we have gone.”
Ian Atkinson, chief marketing officer at Pure Cremation, added: “That the average cost of a funeral has hit almost £4,300 is shocking and it’s one of the reasons more people are choosing a pure cremation.
“It’s less than half the cost, protects against these spiralling prices and lets family choose whatever send-off or remembrance they want, without being burdened by unnecessary funeral expenses.
“And because a direct cremation is less than half the cost of a traditional funeral, there’s often more money for family to arrange a more personal send-off, whether that’s a formal remembrance or a celebration of life – wherever they want, whenever they want, however they want.”