Funeral costs decline as no-frills option gains ground

The annual cost of a UK funeral declined for the second year in succession in 2022, while numbers of “direct cremations”, a pared-back option where no service takes place, continued to increase.

The Cost of Dying Report, produced annually by insurance firm SunLife, found the average cost of a UK funeral in 2022 was £3,953, a decrease of 2.5 per cent since 2021.

Burials remain the most expensive option, with an average cost of £4,794, while the average price of a cremation is now £3,673. Direct cremation costs fell by more than 8 per cent year on year, to an average of £1,511. Across the UK in 2022, 57 per cent of funerals were cremations, 25 per cent burials and 18 per cent direct cremations.

London remains the most expensive place in the UK to have a funeral, costing £5,283 on average. Alongside the national average, most UK regions saw a drop in funeral costs. Only two areas – Northern Ireland and Wales – witnessed an increase.

The survey also considered the wider “cost of dying”, including professional fees (such as doctors, funeral directors and celebrants) and “send-off” expenditure (relating to memorials, deceased estates notices, flowers, and catering for the wake). This had risen to £9,200, up 3.8 per cent from the previous year.

More than two-thirds of people (69 per cent) had made provisions to pay for their funeral before they passed away – up 3 per cent on last year. However, only 59 per cent had put enough aside to cover the whole cost of the funeral – down 4 per cent on 2021.

In addition, almost one-fifth (19 per cent) of families said they experienced “notable financial concerns” when paying for a funeral. On average, they had to find an extra £1,870 to cover the costs – up £70 since 2021.

For more on SunLife’s annual Cost of Dying Report click here.