Funeral Payment Plans UK: Complete Guide
What funeral payment plans are available in the UK?
Most funeral directors offer 6-12 month interest-free installments (10-25% deposit, £240/month typical). Funeral Expenses Payment covers up to £1,000+ if on benefits. Banks release deceased's funds before probate for funerals. 0% credit cards spread costs 12-28 months. Consider direct cremation (£995-£1,400) to reduce costs before borrowing.
- Director installments: 6-12 months interest-free, 10-25% deposit, £240/month typical
- Funeral Expenses Payment: Government benefit, up to £1,000+ if on benefits
- Bank release: Deceased's funds released before probate (£5K-£50K threshold)
- 0% credit cards: Spread costs over 12-18 months interest-free
- Direct cremation: Affordable option £995-£1,400 (vs £3,795 traditional)
- Typical cost: £3,795 cremation, £4,141 burial
Have more questions on UK death administration? Let Farra help.
Key Takeaways
- ✓Most funeral directors offer 6-12 month interest-free installments
- ✓Funeral Expenses Payment covers up to £1,000+ if you're on benefits
- ✓Banks release funds from deceased's estate before probate for funerals
- ✓Personal loans (0% introductory) can spread costs over 1-3 years
Payment Options: Complete Breakdown
Payment flexibility is an important consideration when arranging a funeral in the UK. Understanding your payment options helps you manage costs during a difficult time.
1. Funeral Director Installment Plans
Many funeral directors offer in-house payment plans, allowing you to spread costs over several months without interest.
Typical Terms:
- • 6-12 months interest-free installments
- • 10-25% deposit required upfront
- • Monthly payments by Direct Debit
- • No credit checks (with some providers)
- • Funeral can proceed before full payment
Example:
- • Funeral cost: £3,600
- • Deposit (20%): £720
- • Remaining: £2,880
- • 12 monthly payments: £240/month
Best For:
- • Those who need short-term help
- • Families expecting inheritance soon
- • People who can afford monthly payments
Important: Always ask about payment plans when getting quotes. Not all funeral directors advertise this option but many offer it.
2. Funeral Expenses Payment (Government Benefit)
If you're on certain benefits and responsible for arranging the funeral, you can apply for a Funeral Expenses Payment to help cover costs.
What's Covered:
- • Burial or cremation fees (paid in full)
- • Up to £1,000 for other costs (director fees, coffin, transport, flowers)
- • Travel to arrange or attend the funeral
- • Death certificate/documentation fees
Eligibility:
- • Receiving Universal Credit
- • Income Support
- • Pension Credit
- • Child Tax Credit
- • Working Tax Credit (with disability)
- • Employment Support Allowance
How to Apply:
- • Apply online at GOV.UK
- • Within 6 months of funeral
- • Can apply before or after funeral
- • Decision usually within 2-4 weeks
- • Paid directly to you or funeral director
Important Notes:
- • The payment is usually recoverable from the deceased's estate
- • If estate has over £1,000, you may need to repay some/all
- • Doesn't cover flowers, headstones, or wake costs
3. Pay from Deceased's Estate
Banks will usually release funds from the deceased's accounts to pay for funeral costs, even before probate is granted. According to MoneyHelper, most banks have specific procedures for this.
How It Works:
- • Most banks release £5,000-£10,000 for funeral expenses
- • Provide death certificate and funeral director invoice/estimate
- • Payment made directly to funeral director
- • No waiting for probate (can take months)
- • Prevents you from paying out of pocket
Steps:
- Get itemized quote from funeral director
- Contact deceased's bank with death certificate + quote
- Bank verifies funds available and releases payment for funeral
4. Personal Loans & Credit Cards
If other options aren't available, personal loans or 0% credit cards can spread costs over a longer period.
0% Credit Cards:
- • 0% interest for 12-28 months (introductory)
- • Subject to credit approval
- • Must pay minimum monthly amount
- • High APR after 0% period ends
Best for: Those with good credit who can pay off within 0% period.
Personal Loans:
- • Borrow £1,000-£10,000+
- • Repay over 1-5 years
- • APR typically 3-15% (credit dependent)
- • Fixed monthly payments
Best for: Spreading costs over several years with predictable payments.
Warning:
Only use credit if you can afford repayments. Missed payments damage credit scores and incur fees. Consider cheaper funeral options (direct cremation) before taking loans.
5. Bereavement Support Payment
If your spouse or civil partner died and you were under State Pension age, you may qualify for Bereavement Support Payment.
Payment Amount:
- • Lump sum: £2,500 (or £3,500 with children)
- • Monthly payments: £100/month for 18 months (£350/month with children)
Eligibility:
- • You were married or in civil partnership
- • Partner paid National Insurance for at least 25 weeks
- • You were under State Pension age when they died
This isn't specifically for funerals, but the lump sum can help cover costs. Apply on GOV.UK.
6. Crowdfunding & Charity Help
For unexpected deaths or financial hardship, crowdfunding and funeral charities can provide assistance.
Crowdfunding Platforms:
- • GoFundMe (most popular in UK)
- • JustGiving
- • GoGetFunding
Share your story, set a target, and share with friends, family, and community. Effective for unexpected deaths, particularly young people.
Charity Support:
- • Turn2us (funeral grants)
- • Quaker Social Action
- • Trade union hardship funds
- • Veterans charities (for ex-military)
Many charities offer funeral grants for those in financial need. Check eligibility criteria online.
7. Life Insurance & Funeral Plans
If the deceased had life insurance or a prepaid funeral plan, these can cover costs immediately.
Life Insurance:
- • Contact insurer with death certificate
- • Lump sum paid to named beneficiaries
- • Can take 2-6 weeks to process
- • Some policies offer "fast-track" payments for funerals
Prepaid Funeral Plans:
- • Funeral already paid for in advance
- • Contact plan provider to activate
- • Covers agreed services only (extras may cost more)
- • Usually with specific funeral director
Which Payment Option Is Right for You?
| Your Situation | Best Payment Option | Why |
|---|---|---|
| Deceased had savings/bank accounts | Pay from deceased's estate | Banks release funds quickly, no personal cost |
| You're on benefits (UC, Income Support) | Funeral Expenses Payment | Government pays most/all costs |
| Can afford £200-£400/month for 6-12 months | Funeral director installment plan | Interest-free, no credit check |
| Need 2+ years to repay | Personal loan | Longer term, fixed payments |
| Good credit, can repay in 12-24 months | 0% credit card | No interest if paid within promotional period |
| Deceased was your spouse (under pension age) | Bereavement Support Payment | £2,500-£3,500 lump sum available |
| Unexpected death, limited funds | Crowdfunding + charity grants | Community support can raise significant funds |
Tips for Managing Funeral Payment Plans
1. Get Everything in Writing
Request a written payment plan agreement showing total cost, deposit, monthly payments, and duration. Read terms carefully before signing. The Citizens Advice provides guidance on funeral contracts.
2. Ask About Early Repayment
Check if you can pay off the balance early without penalties. Many funeral directors allow this if circumstances change (inheritance, life insurance payout).
3. Compare Total Costs
Some payment plans add fees or interest. Calculate the total amount you'll pay vs paying upfront. Interest-free is best.
4. Set Up Direct Debit
Automatic payments prevent missed payments and potential late fees. Ensure sufficient funds in account on payment dates.
5. Don't Overspend
Payment plans can make expensive funerals feel affordable. Stick to your budget—don't add costly extras just because you can spread payments.
6. Check What Happens If You Miss Payments
Understand the consequences of missed payments: late fees, interest charges, or legal action. Contact funeral director immediately if struggling.
Reducing Costs Before Considering Loans
Before taking on debt, consider if you can reduce funeral costs instead. Our complete guide to arranging a funeral includes detailed advice on cost-effective options:
Direct Cremation
Cost: £1,000-£1,800
The most affordable option. No service at crematorium, simple arrangements. Hold a memorial separately if desired. Could save £2,000-£4,000 vs traditional funeral.
Compare Multiple Funeral Directors
Save: £500-£1,500
Prices vary dramatically even in the same area. Get 3+ quotes before deciding. Independent directors often cheaper than chains.
Simplify the Service
Save: £500-£1,500
Choose basic coffin, skip limousines, limit flowers, hold wake at home, DIY order of service. These changes maintain dignity while significantly reducing costs.
Frequently Asked Questions
Can I get a payment plan with bad credit?
Yes. Many funeral directors offer payment plans without credit checks. They understand you're in a difficult situation and want to help. Be upfront about your circumstances when asking.
How much deposit do I need for a funeral payment plan?
Typically 10-25% of the total cost (£300-£1,000 for a £3,500 funeral). Some funeral directors may accept smaller deposits depending on circumstances. Always ask what's negotiable.
Can the funeral go ahead before I've paid in full?
Yes. With a payment plan, the funeral proceeds after you pay the deposit and sign the agreement. You then make monthly installments afterward. The funeral director trusts you'll complete payments.
What happens if I can't make a payment?
Contact your funeral director immediately if you're struggling. Many will work with you to adjust payment schedules. Ignoring missed payments can lead to late fees, interest charges, or legal action to recover the debt.
Can I apply for Funeral Expenses Payment after the funeral?
Yes, you can apply up to 6 months after the funeral. However, applying beforehand means you know what financial help is available when choosing funeral options. You can still proceed with funeral while application is pending.
Do all funeral directors offer payment plans?
Most do, but not all advertise it. Always ask specifically about payment options when getting quotes. Independent funeral directors often have more flexibility than large chains.
Frequently Asked Questions
Do funeral directors offer payment plans?
Yes, most funeral directors offer 6-12 month interest-free installment plans. You typically pay a 10-25% deposit (£300-£1,000) upfront, then monthly payments by Direct Debit. Many don't require credit checks. The funeral can proceed before full payment. Not all advertise this option, so always ask specifically about payment plans when getting quotes.
Can I get help paying for a funeral if I'm on benefits?
Yes, Funeral Expenses Payment covers up to £1,000+ if you're on Universal Credit, Income Support, Pension Credit, or certain other benefits. It pays burial/cremation fees in full plus up to £1,000 for other costs. Apply online at GOV.UK within 6 months of the funeral. The payment is usually recoverable from the deceased's estate if it exceeds £1,000.
Will banks release money from the deceased's account for funeral costs?
Yes, most banks release £5,000-£10,000 for funeral expenses before probate is granted. Provide the death certificate and funeral director invoice. Payment is made directly to the funeral director within 5-10 working days. This prevents you from paying out of pocket and doesn't require waiting months for probate.
Can I get a funeral payment plan with bad credit?
Yes, many funeral directors offer payment plans without credit checks. They understand difficult circumstances and want to help. Be upfront about your situation when asking. If one director refuses, try others - independent funeral directors often have more flexibility than large chains.
What happens if I can't make a funeral payment plan payment?
Contact your funeral director immediately if struggling. Many will work with you to adjust payment schedules. Ignoring missed payments can lead to late fees (typically £25-50), interest charges, or legal action to recover the debt. Most directors prefer to be flexible rather than pursue legal action.
Should I use a 0% credit card or personal loan for funeral costs?
Only if you can afford repayments and no other options are available. 0% credit cards work if you can pay off within 12-28 months promotional period (requires good credit). Personal loans spread costs over 1-5 years at 3-15% APR. Before taking debt, consider cheaper options like direct cremation (£1,000-£1,800) or comparing multiple funeral directors to reduce costs.
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