Who pays for the funeral? [UK guide]
When a person dies, who is responsible for funeral costs? Get all the answers in our 5-minute guide.
It's normal to have lots of questions when a person dies. Losing a loved one means having to deal with concerns around funeral arrangements, paperwork and finances, on top of the pain and grief we feel.
One of the most frequently asked questions is, "Who pays for the funeral?" Is it down to the person who has died? Or their family members? And what happens if there's no money left or the person who died had no relatives?
In this guide, we look at who pays for the funeral in several situations. We also answer a few common questions about funeral costs.
Please note that this guide focuses on the laws and conventions for funerals in England and Wales. Rules may vary in Scotland and Northern Ireland, so be sure to check before following any advice.
Who has to pay funeral costs, generally speaking?
This is a complicated question. The answer depends on several factors, including the financial situation of the person who has died.
But generally speaking, the person who has died will be expected to pay for their own funeral. The costs are covered by the person's estate: the sum of their money and possessions when they pass away.
The problem here is that estates usually take a while to "wrap up". Until that happens and it's clear who should inherit what, the estate is frozen. This means no money or assets can be withdrawn.
So, what usually happens is that the person's family pays for the funeral and then recovers the cost from the person's estate when the money is released.
Who actually pays the bill?
While a family group might club together to pay immediate funeral costs, the person who arranges the funeral is responsible for paying the bill.
This means they have a personal contract with the funeral director and will ultimately have the final say when it comes to funeral arrangements.
What if the person who died has debts?
If a person owes money when they die, the debts will be recovered from their estate – provided there's enough money to cover the liabilities.
However, funeral costs take priority over almost all debts and will be recovered first.
The exception is secured debts. These are debts where property is put up as collateral against a loan. A mortgage, for instance, is a secured debt because the home can be seized if the debt isn't paid.
Here's what needs to be paid from a person's estate, in order:
- Secured debts
- "Reasonable" funeral costs, including probate and solicitor fees
- Preferential debts, including wages for employees
- Unsecured debts
- Interest on unsecured loans
- Deferred debts (low-priority liabilities such as informal loans from relatives)
What if there's not enough money left in the estate?
In most cases, family members will pay the bill if the estate can't cover it. However, they're under no legal obligation to do so.
What if the person who died had no family?
If a person dies without an estate and with no obvious family connections, the local council will try to track down surviving relatives. These relatives, if found, may decide to pay for the funeral.
If no relatives are found or nobody is willing to pay, the council will organise a funeral for the person who has died. This type of ceremony is called a "public health funeral".
Traditionally, public health funerals were known as "pauper's funerals". However, this name has fallen out of favour. While basic, public health funerals are still dignified. In many cases, council employees attend the service to pay their respects.
What if the person who died had a pre-paid funeral plan?
It's quite common for people, especially older people, to pay into a funeral plan before they die. These are typically paid in instalments over several months or years.
If the funeral plan was paid in full, everything's covered and you shouldn't have to worry about funeral costs. The only caveat is that you'll have to use the funeral directors that provided the plan.
If the plan was partly paid off, one of two things can happen depending on how much was paid. The provider will either deliver the funeral anyway or you'll receive a refund of what was paid before the person died.
What if the person who died had life insurance?
Life insurance providers pay out a lump sum when a policyholder dies. This money can be used to pay for funeral costs.
One benefit of life insurance over funeral plans is that you can choose any funeral director you like – you're not tied to the one that provided the funeral plan. On the flip side, however, it means you'll have to put more work into organising the funeral.
You can also use the money from life insurance to help pay off debts such as a mortgage.
It's worth checking what kind of policy your loved one had, though. There are many kinds of life insurance and each has different conditions. Joint life insurance, for instance, only pays out when both partners in a marriage or civil partnership pass away.
What if I want to pay for the funeral but I can't afford it?
Funeral costs are very nearly at an all-time high. According to SunLife research, the average cost for a funeral in 2023 was £4,141. Only once has it been higher: in 2020, the average was £4,184.
Unfortunately, this means some families find themselves in a position where they can't afford to pay for the funeral.
However, help is available in the form of the funeral expenses payment. This is provided by the government and is available to family members who receive certain benefits.
If you're eligible for the funeral expenses payment, you'll receive up to £1,000 to cover expenses such as flowers, a coffin and funeral director fees. On top of this, the payment covers:
Burial or cremation fees
Travel costs to help you arrange and attend the funeral
The cost of moving the person's body (if it needs to move more than 50 miles)
Death certificates and other documents
Several charities can help with funeral costs, too. Many are linked to specific jobs, including the Care Workers' Charity, which can provide funeral grants for those who worked in the care profession.
If no other option is available, the council will pay to hold a basic (but respectful) public health funeral.
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