Unfortunately, many families will lose their loved ones before their time due to COVID-19. From all of us at the Just Finance Foundation, our hearts go out to those and their families impacted by this terrible disease. May those lost rest in peace.

This page provides some information and resources to help individuals and families who may be thrown into financial distress due to having to pay for an unexpected funeral.

Who has to pay for a funeral?

The person who signs the papers at the funeral director’s enters into a formal contract to pay for the funeral, so it’s important to understand who is paying for the funeral before you sign. If your loved one had a pre-paid funeral plan, the costs may already be taken care of. If not, the cost of the funeral is usually paid from the estate of the deceased, although it may be difficult to get access to the funds in time for the funeral.

The bank holding the estate should release funds to pay for the funeral from the deceased’s account, if they are presented with an itemised account from the funeral director and a copy of the death certificate. If funds can’t be released in time, the family may need to fund the funeral and be reimbursed later. Family members could all contribute, or you may need to take out a loan to cover the cost until probate comes through.

If there is no family, or the family prove they can’t pay the council will organise a public health funeral. This is a very simple funeral with a short service. It’s often a cremation. Guests are generally allowed to come, but the council will choose when and where it happens. They may also keep the ashes after the service.

Local councils tend to see public health funerals as a last resort. They usually won’t take on the task of paying for funerals when there is no money if there’s any alternative. But this does not mean it is not possible - and if it is an option for you: You can find out more about what a public health funeral is here.

Options for paying for a funeral with limited to no money

Below are some bullet pointed options and steps which could help your situation. Some options are applicable to some people, others will have more to chose between. We advise taking the time to reflect on your finances and with your family on what may be the best option:

• Firstly, if the person who died took out a funeral plan/insurance, you may be able to use this to pay for the funeral. Check their paperwork to see if you can make a claim.

• Take steps to reduce funeral costs. You could use the Quaker Social Action’s guide on how to choose a funeral and reduce costs.

• Compare funeral director quotes. You can use Beyond Life’s free funeral comparison site or Fair Funeral Campaign’s directory to find the least expensive funeral director in your area.

• Apply for the Funeral Expenses Payment. Available to those on certain benefits, this is a government grant that covers essential funeral costs. You can find out more about the eligibility, how it work and the steps you need to follow here: GOV Funeral Expenses Payment

• Apply for a Bereavement Support Payment. If you’re under state pension age and your spouse or civil partner has died, you may be able to claim £2,500 from the government. Click here to find out more: GOV Bereavement Support Payment

• Pay for it using funds from the bank account of the person who died. Most banks will release up to £5,000 for funeral costs when presented with an invoice.

• Consider Direct Cremation. This is the least expensive option, as the most expensive purchases—casket, preparing the body, funeral service, extensive transportation are avoided. If this is an option you may consider, it's worth calling a number of different funeral homes to find one with a lower direct cremation Basic Services Fee.

• Check for charitable grants. Turn2Us can have a grant search tool which may help you find a charity that might offer financial support in light of the COVID-19 pandemic

• Try crowdfunding. Many people will be aware that funding a funeral at this time will be difficult. You can raise money from family and friends using a free Beyond obituary, or through a crowdfunding site. It is important to note that some crowdfunding sites may take a small cut.

• Hold a public health funeral. This is a very simple funeral with a short service. It’s often a cremation. Guests are generally allowed to come, but the council will choose when and where it happens. They may also keep the ashes after the service. If the person died in hospital, speak to the bereavement office there first. 

• If the individual who sadly passed was a frontline health or social care worker, they could be eligible for the NHS and Social Care Coronavirus Life Assurance Scheme 2020. If eligible, a payment of £60,000 will be made to the estate of eligible individuals who die from coronavirus contracted during their frontline essential work.

• If you do need a loan. You could take a look at your local Credit Union. Credit Unions offer loans at rates in which are lower than many traditional lenders (such as banks and payday lenders). You can have a search for your local Credit Union using this link: Find Your Credit Union (REMEMBER: only take credit out at as a last resort once you have considered all other options)

The Money Advice Service have a useful resource page which goes into further detail for the above options. Click here.

Arranging A Funeral

Please note: the rules on in person funerals are changing rapidly and will depend on where you are in the country right now. For all the funeral practicalities you may need to consider due to COVID-19, Age UK have a really useful resource page. Click here to visit Age UK’s resource pages