Mrs Emma Lewell-Buck (South Shields) (Lab)
I beg to move,
That leave be given to bring in a Bill to require the Secretary of State to undertake a review of funeral affordability and costs; to require the providers of funeral services to offer a simple funeral service; to require the Secretary of State to make certain arrangements relating to funeral payments; and for connected purposes.
Losing a loved one can be one of the most devastating experiences we face. Everyone who loses someone close to them wants to give them a decent send-off, but sadly fewer and fewer people are now able to afford even a basic funeral. We do not hear a lot about this problem: because of its deeply personal nature, funeral poverty remains taboo. Today I am proposing measures to end that taboo and to ensure that no one has to endure the agony of worrying about funeral costs at the same time as grieving.
A report released this month by Royal London shows that of the 500,000 families who are bereaved each year, one fifth struggle to afford the cost of a funeral. This is a problem that will only get worse, as the price of a service is accelerating far faster than inflation. Royal London’s research shows that the average cost is now £3,551 pounds, nearly twice the level of a decade ago. Depending on where someone lives, and the availability of burial space, costs can approach £7,000. The rising cost of a service, alongside squeezed household incomes and a failing system of state support, means that many people have to borrow from friends or family, sell possessions or take on credit card or payday loan debt to make up the shortfall. This often means finding themselves in serious financial difficulty.
One woman from my area approached the citizens advice bureau with unmanageable debts. She had been unable to get the money together to pay for a headstone for her brother’s grave. She ended up applying for a payday loan, and the cost of repaying this debt quickly got out of control. Sadly, her story is not an isolated one. Royal London estimates that 110,000 people are living with funeral debt, with each person owing over £1,300 on average. People are also turning to alternatives to the traditional funeral. Some are holding do-it-yourself funerals, and even having to bury relatives in their back garden. A number of companies are offering cut-price funerals, including “direct” cremations that have no formal service attached to them.
Increasingly, bereaved individuals who simply cannot afford a formal service are faced with having to opt for a public health funeral, or what used to be referred to as a pauper’s funeral. When nobody else is able to take responsibility for handling a person’s remains, the local authority has to step in. People have no control over the service, and of course there is a cost to the local authority as well.
My Bill has two main objectives. The first is to identify ways of reducing funeral costs by requiring the Secretary of State to conduct an over-arching review of funeral affordability in the UK. The second is to take immediate steps to help hard-pressed households facing funeral poverty, via specific measures to reform the funeral payments social fund system, and by introducing a simple funeral. The reason for an overarching review is the huge number of factors that contribute to rising funeral costs. We need to consider the amount of burial space available, how deaths are registered, the impact of competition between private and local authority crematoria, and the benefits system that supports those who are unable to afford a service. Addressing affordability will require careful thought and collaboration between several Departments, so the issue needs cross-departmental consideration.
The review would need input from those working in the funeral sector. Funeral directors, for example, are seeing their costs rise because of flaws in the funeral payment system. The amount that can be awarded towards what are called “other funeral expenses”, which include directors’ fees, is capped at £700. This amount was set more than a decade ago and has not risen with inflation, so it has not kept up with funeral directors’ own costs. This means that directors are seeing customers who cannot pay the full cost of a service.
The National Association of Funeral Directors tells me that many of its members are now offering funerals on credit, with no guarantee that the client will be able to pay back the full amount. Even those who can pay face the difficulty of having to return to their funeral director every week to pay back the cost of the funeral in instalments. This is unsustainable, it is awful for those families, it puts businesses at risk and it can lead to higher charges, which are eventually passed on to customers. This is just one example of a serious flaw in the funeral market, and that is why the review proposed in the Bill would need to include consultation with funeral directors, local authorities and other interested parties to look at affordability as a whole.
Outside the overarching review there are measures that could make a difference to funeral poverty right now. The state support available through social fund funeral payments is long overdue for reform. These are payments available through the Department for Work and Pensions, which are supposed to help those on low incomes with the cost of a funeral, but the system does not function well and even encourages some households to get into debt. Applications are lengthy and confusing, especially for someone who is just bereaved, and the outcome may take 17 days. The DWP requires an invoice to process a claim, which means that people who want to arrange a funeral quickly must agree their costs before they know whether they qualify for help. This is worrying when we know that 50% of claims are rejected—about 30,000 a year. These people will have bought a funeral service under the impression that they qualify for help, only to be rejected and left with thousands of pounds of costs that they cannot pay.
Changes to the way the system is run, such as removing the requirement for an invoice, could reduce the number of rejected claims, by allowing people to check their eligibility before they commit to funeral costs. This would help them make a more informed decision about the kind of funeral they can afford, and it would help them avoid debt. The DWP needs to look at how it could streamline the way such claims are processed so that decisions are made more quickly.
The second measure is the creation of a “simple funeral”, which would help people buying a service to understand how much they can expect to pay, and help them make sure they do not pay more than they should. At present many people do not have a good idea of how much a funeral should cost, and this measure would help them make a judgment about the kind of service they want. Funeral directors would be required to let people know how much a simple service would cost if it was bought through them. This would not stop people choosing the service they want; it would just be a clear, easily understandable option available if they wanted it. A simple funeral is already offered by many funeral directors. It helps people make an important decision at a difficult time in their lives, and it helps them choose a funeral that is affordable and right for them. It should be available to everyone.
These measures could make an immediate difference to the households that already struggle with funeral poverty, but the motion needs to be the start of a bigger conversation about how we plan for the future. We need to talk about addressing a failing benefits system, a lack of burial space, and challenges facing the sector overall. But we also want to encourage members of the public to have conversations about planning for the future and how to make sure that there is money set aside to pay for their funeral. I understand that these are difficult conversations, but they are important ones, and I hope that today’s motion can break the silence on funeral poverty. I commend it to the House.
Question put and agreed to.
Ordered,
That Mrs Emma Lewell-Buck, Steve Rotheram, Ian Mearns, Julie Hilling, Meg Munn, Pat Glass, Ian Lucas, Andy McDonald, Mr David Anderson, Graeme Morrice, Jim Shannon and Sir Peter Bottomley present the Bill.
Mrs Emma Lewell-Buck accordingly presented the Bill.
Bill read the First time; to be read a Second time on Friday 23 January 2015 and to be printed (Bill 133).