How to Pay For Funeral Expenses

The rising cost of funerals in the UK is leaving many of us wondering how to pay for funeral expenses. Funerals bring a lot of administrative headaches, as well as emotional pain; the question how to afford funeral costs can exacerbate these two concerns. In this article we will dive into the topic of funeral expenses, offering some advice on how to keep them down.

We’d also just like to say that, if you’ve found us here, we understand that you could be going through a difficult moment. Aura is the top-rated national provider of ‘Cremation Services’ on Trustpilot, with a score of 4.9/5 stars. We offer our funeral services to those requiring a direct cremation in the near future, as well as those thinking about their own future funeral, through our prepaid funeral plans.

Key takeaways:

• Funeral costs can be divided into necessary expenses and additional costs.
• The average cost of a funeral in the UK varies significantly depending on location and whether it’s a cremation or burial.
• The responsibility for funeral costs typically falls to the estate, but government and charitable support may be available.
• Prepaid funeral plans and budget-friendly options can help to manage and reduce funeral expenses, ensuring that families can pay the funeral without added stress.
• If no one can pay for a funeral, the local government becomes responsible for organising a public health funeral.

Understanding funeral expenses

How much does a funeral cost? To answer that question, we have to think about ‘necessary expenses’ and ‘additional costs’, as well as considering what the average funeral cost is in the UK.

What are funeral expenses?

In general, funeral expenses can be divided into ‘necessary expenses’ on the one hand, and ‘additional costs’ on the other. Each and every funeral will have certain costs which cannot be avoided. For example, certain administrative fees, such as the cost of applying for probate when executing a will with an estate of more than £5,000. Then there are unavoidable practical matters: the cost of collecting the person who has died from the location of their death; the cost of their care in mortuary facilities prior to their funeral, and transportation to the location of the funeral; the fees associated with cremation or burial.

There are also additional extras that can be paid for, which may be covered by certain benefits. Many people like to add details and personal flourishes which can help to set things off in a way that expresses the personality of the person who has died more effectively. These could include the costs associated with, for example, floral tributes, a custom coffin, having an attended direct cremation ceremony complete with the services of a funeral celebrant. These extras can increase the cost of matters significantly.

Average funeral costs in the UK

There are a couple of different organisations out there which attempt to share reliable funeral-cost data with consumers. For instance, according to the Cost of Dying report produced by SunLife, last year’s average traditional funeral cost in the UK was £4,285. Legal & General put the average cost at £4,706. These prices don’t distinguish cremation vs burial, instead amalgamating the two types of funeral into one average cost. In general, cremation is significantly cheaper than burial across the board. It’s worth noting that these reports also chart the year-on-year increase in funeral pricing. SunLife point out that funeral prices have risen by 126% in a 20-year period, which is significantly higher than the 72% increase in rate of inflation over the same period. 

The average price of cremation vs burial in the UK is likely to vary significantly by location. For example, according to Legal & General, the average prices of a cremation and a burial respectively in Wales last year was ~£3,900 and ~£5,000. The prices for the same services in the Greater London area are ~£4,900 and ~£8,800.

Who pays for funeral expenses?

A delicate and potentially confusing follow-up which follows on from the question “what are funeral expenses?” is who should pay for them.

Legal responsibility for funeral costs

The costs of a funeral are typically borne by the estate of the person who has died. It may be possible, depending on the type of expense and how expensive it was relative to the total value of the estate, to claim back the tax on these expenses when paying the inheritance tax. If the person who has died had a funeral plan in place, then the funeral is already paid for, with the funeral-plan provider legally responsible for paying the costs of the specified funeral.

Importantly, does next of kin have to pay for funeral costs out of pocket? In general, such expenses are covered by the estate or assistance, not automatically by relatives – as our next-of-kin guide details. Understandably, many families ask who is responsible for funeral costs.

Paying from the estate or bank account

In most cases, funeral costs are paid from the estate of the person who has died — using funds from their bank account, savings, or property. This is usually the first source of payment, before asking family members to contribute.

Many families don’t realise that banks can often release money directly to the funeral provider, even before probate is granted. This means you may not need to pay out of pocket and claim it back later.

Here’s how to arrange direct payment from a bank:

• Contact the deceased’s bank

• Provide a copy of the death certificate

• Submit the funeral invoice from the provider

Once these are received, many banks will pay the funeral director directly, without requiring full probate. This can relieve financial pressure and allow arrangements to go ahead without delay.

For insurance covering funeral costs, such as funeral insurance or over-50s life insurance, there can also be delays relating to the Death Certificate.

What happens if there’s no estate?

If there is nobody left behind by the person who has died who is willing or able to cover the costs of the funeral, then the legal responsibility for organising and paying for their funeral falls to the local government. This is what is colloquially referred to as a ‘pauper’s funeral’, but more generally known as a ‘public health funeral’. The local government will always try to recover as much of the costs they bear as possible from out of the estate, even if there’s not enough there to cover everything.

Government help with funeral costs

The UK government can help eligible families by offering them the chance to claim funeral costs back through a couple of different schemes: the Funeral Expenses Payment and the Bereavement Support Payment. It’s unlikely that these payments will cover the full cost of the funeral being organised, but they can provide significant financial relief to families wondering how to get help with funeral expenses.

If there aren’t enough funds in the estate, the government can offer the chance to claim funeral costs and support through a couple of different schemes.

• Funeral Expenses Payment (England, Wales, Northern Ireland):
  This scheme can help with essential costs like burial or cremation fees, transport, and the death certificate. It’s available to people on certain income-related benefits. You can apply through GOV.UK.

• Bereavement Support Payment:
  If your spouse or civil partner has died and you’re under state pension age, you may qualify for this payment, even if you’ve already received the Funeral Expenses Payment.

• Public Health Funeral:
  If there’s no money in the estate and no family or friends able to arrange a funeral, your local council can organise a basic service. This is known as a public health funeral.

These options exist to ensure that everyone receives a dignified farewell, even when money is tight, and while they may not cover the full cost of a funeral, they can offer meaningful financial relief to families wondering how to get help with funeral expenses. You can speak to your funeral director or Citizens Advice for guidance on how to apply.

Support from employers, charities or community Grants

Alongside government support, there may be other sources of financial help available through your workplace, local council, or community organisations.

• Employers, trade unions or pension schemes may offer bereavement grants or compassionate payments, especially if the person who has died was a current or former employee.

• Turn2Us is a national charity that offers financial grants for those experiencing hardship.

• Down to Earth, run by Quaker Social Action, provides practical advice on planning affordable funerals.

• Local councils, religious groups, or community organisations sometimes offer small hardship grants to help with funeral costs.

• Crowdfunding through organisations such as GoFundMe and JustGiving.

It’s worth checking with your funeral director, Citizens Advice, or local authority to see what support may be available in your area.

Managing funeral costs without funds

There’s no sense in shying away from the fact that funerals can be expensive, but, from prepaid funeral plans to budget-friendly funeral options, there are ways to keep funeral costs down.

Prepaid funeral plans

If you’re wondering how to save for your funeral, one of the most effective ways is with a prepaid funeral plan. These allow you to lock in today’s prices and make sure your loved ones aren’t left worrying about how to pay for a funeral. Saving for funeral expenses over time can also ease future financial pressure and offer peace of mind.

If you were to buy one of Aura’s funeral plans today, even if we don’t need to activate your plan for many years, you’ll have paid today’s prices for your future funeral. Given the rate at which funeral prices seem to rise year-on-year, this is quite a benefit. It gives your family total peace of mind that everything is paid for, as there won’t be anything left to pay when the time comes, and they won’t have to pay out of their own pockets first. Compare Aura funeral plans with other leading providers to make sure that you are getting the best deal for you.

Ways to spread or reduce costs

There are lots of ways to arrange a low-cost funeral that still offer dignity, care and meaning. By focusing on the essentials, such as the burial or cremation itself, and leaving out optional extras, families can avoid unnecessary expense while still creating a respectful farewell.

It’s also worth considering different funeral payment options, including paying in instalments or exploring funeral insurance or over-50s life insurance policies. These options can help cover costs at a later stage, though it’s important to understand what’s included and when the funds will be available. If there’s no life insurance, or if a policy doesn’t pay out quickly, families may still face challenges paying for funeral costs up front.

It’s also a good idea to compare prices from different funeral directors before making any decisions. The Competition and Markets Authority (CMA) requires all funeral providers to publish their prices clearly. This can help you find the right balance between cost and care. In some cases, it can save families hundreds of pounds.

Many families also consider alternative funeral options, which are growing in popularity across the UK. Choices like natural or woodland burial, burial at sea, or water cremation may be more affordable than traditional services. They can also reflect someone’s personal values or wishes.

One of the most cost-effective choices is direct cremation. This is a simple cremation without a formal ceremony. It allows families to say goodbye in their own time and way, often followed by a memorial or end-of-life celebration of life at a later date. These alternatives can offer both flexibility and financial peace of mind, especially when planning under pressure.

Timing and process for paying funeral costs

There are certain things to bear in mind when it comes to the length of time it can take to access funds intended for funeral expenses.

When are funeral costs paid?

A funeral cannot proceed without paying having been made, so in the first instance, funeral costs are paid fairly soon before the funeral itself. This may mean that you will need to pay out of your own pocket for funeral costs, particularly if there is no funeral plan in place, or if you are relying on methods that have protracted timeframes for access to money.

When purchasing a funeral plan from Aura for a future funeral, you can either pay all in one go up-front from £1,695, or in 12-to-24 instalments from £70.62. The final price across both options is the same, as we don’t charge an instalment fee. This gives you complete freedom to make the best decision for yourself.

How long does it take to access funds?

The release of funds from the estate of someone who has died, depending on the circumstances, can take many months. Applying for probate is a legal process which can be disputed by different executors to the will, or other kin of the person who has died, which can lead to long delays. Over-50s life insurance policy providers may request (and in rare cases where there is cause, dispute) information about the person who has died before they are willing to pay out, meaning that it can take a while before the beneficiary sees the money that will be paid out. 

If you need to access cash within the bank account of a loved one who has died in order to pay for their funeral, then the length of time needed to achieve this will depend on the bank. More and more these days banks are aiming to provide more caring customer service; in sensitive situations like this, they recognise that they can make our lives easier by giving us access to such funds after we have shared certain pieces of paperwork with them. The process of gaining access to a loved one’s bank account in this way is different from bank to bank, and could take between a few days and a few weeks.

How to pay for a funeral

If you’re facing funeral costs and not sure where to begin, this simple checklist can help guide you through the key steps:

• Step 1: Check if the person had a funeral plan or life insurance
  This could cover all or part of the costs.

• Step 2: Contact their bank to request payment from their account
  Banks can often release funds directly to the funeral provider with the right paperwork.

• Step 3: Explore help from government benefits
  You may be eligible for a Funeral Expenses Payment or Bereavement Support Payment.

• Step 4: Ask about employer or charity support
  Some employers, unions, and charities offer bereavement grants or funeral help.

• Step 5: Compare funeral costs and choose affordable options
  From direct cremation to budget-friendly services, there are ways to honour a loved one without financial strain.

Addressing common questions and concerns

There are common questions which people ask relating to how to pay for funeral expenses. Often, people are worried about what will happen if no-one can pay, and where we can turn to if we need advice.

What happens if no-one can pay?

If nobody can pay for the funeral, for instance, in situations where the person who has died had nobody in their life and they died without a plan in place. Or in situations where the person who has died is leaving behind a family which is unable to afford a funeral for them, then there is a safety-net in place in the UK that provides an option. The local government of the area in which the person has died becomes legally responsible for organising and paying for their funeral. This type of funeral is referred to as a ‘public-health funeral’.

The local government will look to make things as cost-effective as possible. The kind of funeral (cremation or burial / attended or unattended) will depend entirely on the local council, with British families requiring this support currently being entered into something of a post-code lottery for the type and quality of the service provided. In cases where the funeral is a burial, sometimes the grave is unmarked in order to avoid the costly expense of headstone. The public-health funeral aims to preserve the dignity of the person who has died by providing a last-resort funeral at the lowest possible cost to the state.

Who can families turn to for advice?

There’s lots of advice available to families should they need it. At Aura, all of our funeral arrangements are handled by our wonderful Aura Angels. They are our industry-leading, compassionate team of funeral arrangers and they thrive when helping families through the difficult time of making funeral arrangements for a loved one. Not only can they assist with the paperwork, but they can lend you an ear, should you wish to talk about what you’re going through, especially regarding funeral payment concerns. They can also point you towards useful financial resources. In general, talking to your funeral director about your needs as soon as possible can be very helpful.

Families can also turn to charities such as Cruse Bereavement Support and Sue Ryder. These charities can point us in the direction of useful financial guidance and support, as well as support with coping with grief and bereavement.

Aura is here to help

We hope that this article has given you some useful information about how to pay for funeral expenses. If you’re currently organising a funeral for a loved one, we want you to feel as reassured and well informed as possible, as we know that this time can be difficult enough as it is. 

If you’d like Aura’s help with your funeral arrangements, whether in the immediate future or as part of a prepaid funeral plan for your own funeral in years to come, our Angel team is always ready to take your call.