UPDATE: Families across the UK are increasingly turning to loan sharks and crowdfunding platforms to cover escalating funeral costs, which have surged by 5.3% in the last year, reaching an average of £4,510, according to the latest Cost of Dying report released by SunLife.
This alarming trend reflects a broader financial struggle faced by 15% of families who report the burden of funeral expenses as a significant concern. The annual report, which has been published for 22 years, reveals that average costs for traditional attended funerals have risen 146% since the first study in 2004. This increase far exceeds the 82% rise that would have occurred had prices remained in line with inflation.
The 2026 report highlights that the most common type of service, a simple attended funeral, now averages £3,828 in the UK and £3,655 in Scotland. Many families are resorting to credit cards, installment plans, and even selling personal belongings to meet these rising costs.
Notably, the use of crowdfunding has doubled from 6% to 12% in recent years, indicating a growing reliance on community support. For the first time, the report identifies loan sharks as a funding source, with 8% of families admitting to using this risky option.
Meanwhile, the popularity of direct cremations has skyrocketed, now accounting for 21% of all funerals, up from just 3% in 2019. This shift has been largely driven by the COVID-19 pandemic, as families seek more affordable options. Despite the lower average cost of direct cremations at £2,949, many still opt for a wake or memorial service, which adds to the overall expense.
While 70% of individuals make some funeral provisions, only 42% have saved enough to cover full costs, leaving families to shoulder the remaining burden.
SunLife’s chief executive, Mark Screeton, stated, “Our research shows that the cost of saying goodbye continues to rise faster than some families can afford. Planning ahead means families can create a meaningful farewell without unnecessary stress or cost at an already difficult time.”
Lindesay Mace, co-manager of the funeral poverty charity Down to Earth, emphasized the emotional toll of financial hardship, stating, “The distress caused by struggling to pay for a funeral should not be underestimated. We see the devastating effects on people’s health and their ability to grieve on a daily basis at our Down to Earth funeral costs support service.”
Demand for assistance is climbing, with a reported 20% year-on-year increase in contacts to their helpline in 2024/25. The situation is urgent, and families are urged to consider proactive funeral planning to mitigate these escalating costs.
As funeral prices continue their upward trajectory, the implications for families are profound, affecting their emotional well-being and financial stability. The urgent need for affordable funeral options is more pressing than ever.
