Written evidence from Oxley’s Funeral Services (BVB0044)

Dear Frank

Just by way of introduction I am a retired Police Officer and have been working in the funeral industry for the past 8 years. The firm for whom I work are a family business who I have to say should have achieved a charitable status for the many families they have personally financially supported over the years. We were, until the summer, of this year the only funeral director in this area to undertake a funeral without insisting on a deposit to cover the third party disbursements. With increasing bad debt which was a consequence of families failing to pay, we now insist on a substantial deposit. Last week two families as a result were forced to approach Hospital and Council funding due to them having no money.  Today as I am writing this report another family has found themselves in the same positon. 

Just to give you some information regarding our company we were established as Funeral Directors in 1981 and carry out over 300 funerals per annum. We serve predominantly the South Cheshire area.

For quite some time we have had issues with family’s ability to pay for funerals – a problem which we believe, will only get worse in the future. The main problem is that whilst there is a social fund it pays only a third of the overall cost and only applies to people on various benefits. For those on low income they do not qualify for any support from the state. (This cannot be fair – it penalises hard working families).

Whilst in years’ gone by people put money aside for their funerals with insurances (penny policies) etc the mind set of today is ‘live for today and tomorrow will take care of itself’. Generally even those in their fifties do not have sufficient funds to pay for a funeral which today averages £3500.

Due to the fact that Funeral Directors will not carry out a funeral without a substantial deposit at the time of arranging the funeral, the social fund which does not pay out for at least 3 – 4 weeks following the funeral is of no assistance to families. Thus more and more families are seeking ‘pauper funerals’ from the council, or going into serious debt. Many poorer families do not possess a credit card and if they do they are already in substantial debt.

The next paragraph which is out of date gives an idea of the overall household wealth in 2005.

‘We emphasise that the vast majority of household wealth is held in an illiquid form. Almost half of all families had less than £1,000 in liquid financial wealth in 2005’. (Published by The Institute for Fiscal Studies). This can only have worsened since the financial crisis.

I list below some facts which may aid any future debate on this issue:

1. Provision for funeral expenses
• There is an increasing number of people making no provision for funeral expenses.
• Misconception by those on social support that the state will pay for the funeral.
• The Social Fund allowance has not kept pace with funeral costs there is now an average shortfall of £1800.
• Whilst the GVT has introduced the CTF and compulsory pension contribution, i.e. work place pensions has any thought been given to introducing FTF a Final Trust Fund? i.e. one which will pay a standard funeral cost.
• There are private Funeral plans and insurances on the market but they are predominantly sold to those who have been in full time work and who can afford the cost. Akin to private health policies/private pensions there will be a market for private funeral plans for those wishing to spend more money on a funeral.

2. Facts

• Last year there were 69000 applications and 38000 claims paid out from the social fund at a cost of £43 million. Does this include the overheads for providing the service?
• The Budgeting loan has not been successful for any of our clients.
• Death rate and cost of funerals continuing to rise.

3. Local issues

• The burden at this time is too often falling onto the Funeral Director, and therefore Funeral Directors are now insisting that the disbursements (3rd party costs) are paid at the time of arranging the funeral.  For some families they simply do not have any funds and are approaching the local council or indeed the Hospital (if the person died whilst in Hospital) to meet the funeral costs – of course this a burden to the council and the NHS.
• Huge amount of additional stress for families at a time of bereavement regarding inability to pay the funeral cost.

4. Care Homes

• A major problem is for those going into or in care/nursing homes who have made no provision for their funeral costs.  Those who are fully funded by the state often have no savings and therefore on death no money left for funeral expenses. If the funeral director is called to remove a body from a nursing home (and often it is during the night), should it be, that when enquiries are made the following day to establish a next of kin and funding for the funeral, there is no money, the funeral director is responsible for carrying out the funeral because we have taken the deceased into our care.  The alternative it to leave the body languishing in the nursing home whilst attempts are made to engage the council.

Example: Last year we were called to a nursing home in the early hours of a Saturday morning to collect a deceased person – they did not intimate that there was no money to cover the funeral costs and when this was discovered on the Monday on my return to work the Council were initially unwilling to assist, because we had collected the body. I managed to convince them only because at the time the weather was very hot and for health and safety reasons to have left the deceased without proper storage facilities i.e. fridges would possibly have cause health risks to other residents and staff.  This cannot be a fair way to treat funeral directors and the whole issue of body collection needs to be visited.

5. Potential savings for the government

• The GVT could levy every person in full time work a set amount (£50) a year towards their FTF gathered via NI. 
• Any person claiming benefits will equally have to make the same contribution deducted from their allowances.
• All contributions will be tax free however the GVT will pick up the interest which will pay administrative charges.
• Anyone who owns an existing plan will receive the contributions to add to their estate. (Not all funeral plans guarantee full and final payment).
• It could potentially solve the growing burden the GVT will face unless action is taken soonest.

6. Proposals:

• The Government consider the introduction of a TFT.
• Additional guidance and information is required from Government regarding meeting the cost of a funeral and who is eligible to claim from the social fund, making clear it is a contribution and will not cover the cost.
• The existing Budgeting Loan is simplified, more easily obtainable and issued faster. (Note we have not yet has a successful claim via the budgeting loan).
• The Social Fund able to give quicker indications of whether a claim is possible and able to pay before the funeral takes place.
• Some thought is given to providing assistance to those on low incomes.

I have submitted a similar report to our local MP Edward Timpson and received a response from the works and pensions department who appear to be in denial that the current system is not fit for purpose.

The only inevitable thing in life is that we are all at some point going to die and yet there appears to be so little thought given at government level on this issue.

I have worked with the Home Office on a number of Police National initiatives and would be quite willing to offer any assistance you may require in moving this issue up the political agenda.

Kindest regards

Sarah Douglas QPM

Oxley’s Funeral Services, Crewe

February 2016