Funeral Poverty

Emma Lewell-Buck Excerpts

Tuesday 11th September 2018 Westminster Hall

[Mrs Emma Lewell-Buck (South Shields) (Lab)]

I beg to move,

That this House has considered funeral poverty.

It is a pleasure to see you in the Chair, Mr Streeter. While few things are certain in this world, we can be sure that almost all of us will have to go through the unbearable, gut-wrenching pain of losing a loved one. Since death does not work to a strict timetable and can often come without warning, even at the end of a long illness that final passing can still take us by surprise. The support and help that people need at this time must surpass all normal standards. Sadly, it does not, which is why I secured this debate.

I am deeply frustrated that the debate is one in a long line I have contributed to on this subject. Over the past four years, I have faced a multitude of Ministers and met numerous organisations and groups in an attempt to press the Government to make much-needed reforms to how funeral services and, crucially, social fund funeral payments, administered by the Department for Work and Pensions, operate. The measures I have pressed for, and which I proposed in a Funeral Services Bill some years ago, would ease the burden of those who want to give their loved ones a fitting tribute. That I am here again to ask the Minister the same questions is evidence enough that, despite warm words from the Prime Minister as recently as last week, when she said that

“it is important to families and individuals to be able to give their loved one a proper funeral”—[Official Report, 5 September 2018; Vol. 646, c. 160.]

the reality is that, on her Government’s watch, more and more people are simply unable to do just that.

One key ask in my Bill, and from many other people at the time, was for the Government to carry out an over- arching review of funeral affordability. Back in 2014, more than 100,000 people were estimated to be suffering from funeral poverty. A Co-op survey earlier this year revealed the number now to be 4 million. That is 4 million people who have experienced financial hardship as a result of a loved one’s death.

The gulf between incomes and living costs continues to rise as the Government’s agenda, coupled with punitive welfare and benefit reforms and inaction on low-paid, insecure work, has led to a record 8 million working adults living in poverty.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

I congratulate my hon. Friend on her tenacity and determination in taking on this terrible scourge. Is she aware of the exploitation that people face when trying to bury a loved one, with local authorities doubling, tripling or quadrupling burial fees for someone who did not live in the borough at the time of death, even if they own the grave and lived in the borough almost their entire life?

[Mrs Lewell-Buck]

One measure in my Bill was to look across the board at what local authorities and the market were doing in relation to funerals, because people are being exploited at such a sensitive time.

[Mr Jim Cunningham (Coventry South) (Lab)]

I congratulate my hon. Friend on securing this timely debate. Is she aware that the average cost of a burial nationally is £4,561, yet the average social fund funeral payment is £1,427—about 35% of the cost? Given the rising cost of living in other respects, that is quite a burden on a lot of families, and a lot sometimes have to sell goods to pay for funerals. Does she think that there should be an investigation into funeral charges, and also into the scope of the social fund itself?

[Mrs Lewell-Buck]

It should come as no surprise to my hon. Friend that I will address all the points he raises.

As I was saying, a record 8 million working adults live in poverty in the UK, with 14 million people overall living in poverty. It is little wonder that, for someone living day by day and hand to mouth, the final act of giving a deserving tribute to their loved ones is heartbreakingly out of reach. An estimated 81% of people have been unable to save for a funeral. Funeral poverty in the UK has now reached a record high of more than £160 million in 2017—a 50% increase in the last three years alone. There has also been an increase in people having to wait more than a year to bury family members.

The cost of a basic funeral is now £4,078, yet this can rise in some London areas to as high as a staggering £12,000. Around a quarter of families that cannot afford funerals borrow from friends or relatives, a quarter put costs on a credit card, and the rest take out loans or work out an instalment plan with funeral directors. Some even sell their belongings. It has been revealed recently that people are increasingly turning to crowd- funding websites to raise money for funerals, with JustGiving showing a 400% increase in people asking for money from friends, families and strangers to fund funerals for their loved ones. I cannot imagine having to seek support from strangers on a faceless website to pay for a loved one’s funeral.

My Bill and the “Support for the bereaved” report by the Work and Pensions Committee both called on the Government to negotiate a simple funeral service and to establish with the sector a reasonable cost for items required for a simple funeral. The Government claim that doing so would interfere with people’s choice but that they are working with stakeholders to agree what might be included in a standard package funeral. I hope the Minister can advise us what stage he is at after two years of discussions.

For those struggling to afford a funeral, there is state support in the form of the social fund funeral payment. It is accessible to those on certain benefits, but it is in absolutely dire need of reform. In 2017, out of the 41,800 applications for the fund, 16,900 were declined. Considering that the fund can be accessed only once funeral costs have been committed to—once a debt exists—that leaves almost 17,000 people struggling to pay. The DWP’s target to deal with claims is 16 days, yet the average between a death and a funeral is 13 days, and much less for some religions and cultures.

Those payments also categorise certain aspects of a funeral. The provisions refer to “other expenses” as being funeral directors’ fees, ministers’ fees and a coffin. These apparently optional extras have been capped for 15 years at £700. If the cap had kept up with inflation, it would be £300 higher today. However, funeral costs have far exceeded the rate of inflation, more than doubling since 2003.

I acknowledge the Government’s changes in recent years, such as allowing recipients to receive contributions from other sources without deductions, extending the claim period from three to six months after the funeral, and introducing both a shorter application form for children’s funerals and the electronic submission of forms. However, the stark reality is that, without exploring the regulation of the market and funding demand and establishing eligibility for the social fund before people commit to costs, the number of those in funeral debt will continue to swell. In 2016, the then Minister rejected calls for an eligibility checker, saying that that would cause more “confusion”. I find it absolutely impossible to see how someone knowing whether they are eligible to afford a funeral for their loved one before committing to one can cause more confusion than not knowing and being saddled with debt.

[Chris Stephens (Glasgow South West) (SNP)]

The hon. Lady is making very important points about the social fund funeral payment system. Does she agree that it not only is confusing but adds considerable emotional stress for those going through the system if they wait so long for a decision as to whether they will get money, bearing in mind that the grant itself does not even meet some of the basic costs of a cremation, for example?

[Mrs Lewell-Buck]

I thank the hon. Gentleman for that intervention. The process is indeed distressing and complex for many people. I think the forms that need to be filled in number 24 or 26 in total. When someone is grieving and trying to find the money to pay for a funeral for a loved one, filling in 20-odd forms and trying to have a clear head while doing so is nigh on impossible.

Today the Minister may well refer to budgeting loans as an option for helping families to pay for funerals, but I am sure he knows as well as I do that the figures for how many people apply for those loans for funerals are not recorded or kept centrally and that the average amount of a loan in the past year was only £420.

The Government should note that putting their head in the sand does not make this problem go away; it simply moves it around. A freedom of information request via ITV revealed that a 70% increase in public health funerals over the past three years has cost local councils up to £4 million. Historically referred to as paupers’ funerals, they are the last option when there is no one available to pay. It was also revealed that some local authorities were not allowing families even to attend those services. In short, taxpayers are paying for funerals one way or the other. Surely, making the fund fit for purpose is preferable to the scenarios I have outlined.

I am pleased to say that, where the Government are failing, others have stepped up. The Fair Funerals campaign—Fair Funerals is no longer in operation, but I thank it for its co-operation over the past few years—successfully managed to persuade one third of the industry’s members to display transparent, honest prices on their websites. The Co-op announced that it would invest a further £6 million in lowering funeral costs by introducing a best-price guarantee, reducing the cost of its cheapest funeral to £1,895, and the Competition and Markets Authority announced a review of the £2 billion funerals market earlier this year.

At Prime Minister’s questions last week, the Prime Minister was asked to meet a Conservative Member to discuss funeral poverty. The Prime Minister declined a meeting and went on to assert that

“the funeral expenses payments do continue to cover the necessary costs involved with funerals and cremations”.—[Official Report, 5 September 2018; Vol. 646, c. 160.]

That is completely wrong and contradicts the DWP webpage, which clearly states that the payment

“will not usually cover all of the costs of the funeral.”

It is also at odds with what funeral directors themselves are saying, with 95% reporting that Government funeral payments no longer cover even the very basic costs.

I appreciate that, in the past, Ministers have been unable to comply with all my asks on funeral poverty, so today I have only two main asks: a commitment to raising the social fund funeral payments and a commitment to introducing an eligibility check. Those two simple asks would make a world of difference.

It would be remiss of me not to acknowledge the work of my hon. Friend the Member for Swansea East (Carolyn Harris), who is not here with us today, and of the hon. Member for Southend West (Sir David Amess). Both are doughty campaigners on this issue.

Funerals are not a choice. Death shakes us and changes us forever. No one ever wants their loved one to pass away, and the debts associated with the funeral—or the memory of not being able to give them a decent send-off—loom over people for years. In austerity Britain, people are not just struggling to afford to live; they are also unable to afford to die. The Minister has an opportunity today to make some very small departmental differences that would ease this enormous burden on people in their darkest days. I just hope that, this time, he will.

--- Later in debate ---

[Justin Tomlinson]

I thank the hon. Gentleman for that intervention, and that is on the list of things that I will look at.

We must also focus on the quality and the standards of funerals. I accept the point that my right hon. Friend the Member for South Holland and The Deepings made, when he said that people do not necessarily shop around for funerals. Again, on my visits this summer, I was told that it is often the case that people go to the same funeral director that everyone else in their family has ever used, so that the relationship is built up. In this area, it is not necessarily an empowered consumer shopping around and using their buying power—I 100% get that.

Nevertheless, the CMA investigation is important as it will shape our work going forward. We expect the interim report in November and the final report next May. This investigation will be integral to our work in the future, because it is a comprehensive review of what is happening out there in the market.

Also, the market is responding, which is a good thing. Both Dignity and the Co-operative, two of the biggest players in the market, have started to offer more affordable basic funeral packages; that is a great step. Following the CMA investigation, the onus will be on us as to how we can make such basic packages more of a given and build on them; that is a really important area for us to look at. The Royal London national funeral cost index has also been doing lots of investigations, and I will meet Royal London later in the year.

We have already made some vital improvements.

[Mrs Lewell-Buck]

I thank the Minister for giving way and I am sorry that I did not welcome him to his new position; it is hard to keep up with things here these days, with reshuffle after reshuffle. Before he moves on to say what is coming in the future, can he update me in relation to a point I made in my speech? I asked what had happened to the discussions that I was promised two years ago about working with the sector to develop a simple funeral.

[Justin Tomlinson]

I thank the hon. Lady for that intervention. That is ongoing work, but we felt that we needed additional evidence. I understand the importance of getting these things done, although I am relatively new to this role. However, we needed the information from the CMA to give us the ability to make informed asks, in respect of what we expect of the industry and what more we can do to empower the industry to deliver more affordable options. Perhaps then we can see areas where the Government can consider the public health aspect of funerals, as was raised in the debate, and also what local government can do. I understand the frustration, I absolutely do, and my commitment, as I am trying to demonstrate, is that we will do a lot more.

We have extended the claim period from three to six months. That is a welcome measure. We have exempted contributions from relations, friends and charities, which is also welcome. On the key bit about people not understanding, we have already made a start by introducing a helpline, about which we have had fantastic feedback. It is really important to try to give people more information and there is a lot more to be done in that area. People do not receive the ultimate decision until they have either signed a contract saying, “This is what I want to do”—but it is people’s nature to often change what they want—or until the funeral has taken place, so I understand the important point that more needs to be done on that issue. I will continue to meet and work with the industry, utilising its expertise and that of any colleagues here who wish to be engaged following both the interim and final CMA reports. I would welcome such contributions.

--- Later in debate ---

[Mrs Lewell-Buck]

I thank all right hon. and hon. Members for taking part and for their thoughtful contributions. It is unusual to have members of four different parties all asking for the same thing.

I thank the Minister, and I welcome his tone and his openness towards moving forward, but I am a little disappointed because it would not have been difficult to guess what I would be asking for today and it would have been nice if he could have given at least some assurances or had promised that we would see some change soon. Ultimately, the only thing we will leave here knowing as an absolute certainty is that more and more people will join the thousands who struggle to provide their loved ones with this final act, and that is not good enough. The matter is an urgent one, and I press the Minister to get cracking.

Question put and agreed to.

Resolved,

That this House has considered funeral poverty.