Loan sharks and crowdfunding used to pay for funerals as costs rise - report

Loans sharks and crowdfunding platforms are being used to pay for funerals as the costs of traditional services have seen the biggest yearly increase since 2016, according to the annual Cost of Dying report.

The report, published by SunLife for the last 22 years, is based on data from funeral directors and individuals involved in organising funerals from across the UK.

The 2026 report details the average cost of a traditional attended funeral jumped 5.3% to £4,510 last year. This reflects increases including coffin prices, burial and cremation fees, staffing costs and energy prices.

Since the first Cost of Dying study in 2004, average traditional attended funeral costs have increased 146% – however, this would have been 82% if increases had matched inflation over this period, according to the report.

The most common service, a simple attended funeral, has a lower average cost of £3,828 for the UK, and £3,655 for Scotland. This type off funeral is similar to a tradition service but forgoes some additional add-ons.

Meeting funeral costs is a cause of financial concern reported by 15% of families, with credit cards, instillment plans, and the sale of belongings being used to fund services.

Reports of using crowd-funding platforms by those in financial difficulty have increased from 6% -12% over the past years and the use of loan sharks was reported by 8%, the first time this source of funding has been identified in the Cost of Dying report.

Direct cremations, where the deceased is taken to the crematorium without anyone in attendance or any service, have increased in popularity and now account for 21% of funerals, rising from just 3% in 2019 – a change fuelled by the COVID pandemic.

Most people opting for such a funeral, 86%, still hold a wake or similar memorial and this increases the average cost to £2,949, according to the study.

Although 70% of people make some provision for their funeral, only 42% have planned enough to cover the full costs, leaving family to meet the difference.

SunLife chief executive Mark Screeton said: “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 funeral poverty charity Down to Earth, said: “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.

“This financial hardship is reflected in growing demand for help, with our helpline seeing a 20% year-on-year increase in people contacting us in 2024/25.”