Average funeral cost rises by 4.7% in 2023, SunLife finds

After two years of lower funeral costs – in part due to the pandemic – prices are on the rise again, as 2023 saw the average funeral cost rise by 4.7% to £4,141, according to the 20th edition of SunLife’s Cost of Dying report. 

While this rise is below the high rates of inflation in the UK, the cost of a basic funeral has risen by 126% since the first Cost of Dying report of 2004. That’s 54% higher than the rate of inflation over the same period (72%).

If funeral costs had risen at the same rate as inflation, they would now be over £1,000 lower. 

Findings also suggested that the average cost of a basic funeral remains just shy of 2020’s all-time high, but that the cost of dying has increased by 5% to £9,658 – the highest figure ever.

This comes as a hike in send-off costs to £2,768 and in professional fees to £2,749 means the overall cost of dying is up £458 year-on-year.

The SunLife Cost of Dying report showed that burials, which make up 27% of all services, remain the most expensive type of funeral, with the average cost up 5.9% to £5,077. 

However, cremations remain the most popular type, making up 53% of all services at an average cost of £3,795 – up from £3,673 last year. But it’s direct cremations that remain the most affordable, and as a result, they are steadily rising in popularity. 

Despite a 2.1% fall in the average cost of a funeral in London, it remains the most expensive place to die. The average funeral in the capital costs £5,171 – 59% higher than the average cost in the cheapest region, Northern Ireland.

Finally, while some 70% do make provisions to pay for their funeral before they pass away, only 54% leave enough to cover the full cost, meaning that just 43% of people are making adequate financial provisions for their own funeral.

One in four (24%) told SunLife paying for a funeral impacted their own standard of living; of this group, 42% had to cut back on essential items and 27% struggled to pay their bills. For one in five people (20%), covering the shortfall caused them ‘notable financial concerns’.

Mark Screeton, CEO of SunLife, said: “This year’s Cost of Dying report – our 20th edition – shows just how high costs have become over the past 20 years. Even though costs actually fell in 2021 and 2022, the cost of a basic funeral has increased 126% since 2004 – far higher than the rate of inflation over the same period. 

“Combine this with the fact that most people do not leave enough money behind to pay for their own funeral and it is understandable that so many families across the UK are struggling to cover the cost.”