Yourmoney.com has today reported that a basic funeral will now cost £3,702, up from £3,562 in 2014. This is a 3.9% increase, which is higher than annual UK inflation of 1%, as measured by the Retail Prices Index (RPI).
The annual study by life company Royal London revealed that the price of a funeral has risen almost as rapidly as house prices since 1980.
Cremation costs have risen more than burials in the past 12 months with the average cremation up 4.2% to £3,294, and the average burial up by 3.7% to £4,110.
Funeral costs continues to be a postcode lottery with prices ranging from £2,976, for a cremation in Greenock, Scotland, to £7,216 for a burial in Beckenham, Kent – a difference of £4,240.
On a national scale, Wales saw the most significant cost rise between 2014 and 2015 of 5.2%. This compares to a rise of just 2.4% in Scotland.
On a regional level, costs rose most in the West Midlands and Yorkshire and Humberside – over 4% in both regions.
Royal London said to cope with rising costs people are cutting-back when it comes to paying for essential items such as coffins, and optional elements such as flowers. The most striking example is coffins: last year’s research found people spent £1,108 on average, but the 2015 report showed this has dropped to £989, a decrease of 11%. People are also exploring alternative burial options – 8% are now ‘woodland’ or ‘‘natural’.
This latest research highlights the importance of planning ahead and the benefits of a BTWC guaranteed funeral plan which;
- Fixes the cost of your funeral at today’s prices
- Offers flexibility on payment options – pay in a single lump sum or spread the cost over up to 10 years
- Gives peace of mind that you are protecting your loved ones from rising funeral costs and sparing them the distress of making difficult decisions
If you are an adviser, contact us for a free consultant guide and about our great rates of commission.