The Rising Cost of Dying: A Record-Breaking Year for UK Funeral Expenses

The ‘Cost of Dying’ report, issued annually by the financial services company SunLife for the past 21 years, serves as a bellwether for the funeral and broader bereavement sector. While the headline statistics accurately highlight the ever-increasing overall cost of dying, the report also includes other intriguing trends and practices. In essence, it has never been more expensive to pass away.

The financial and emotional burden of saying goodbye to loved ones has reached new heights, with the recently released 2025 edition revealing record-breaking figures. The total “cost of dying,” which includes all funeral expenses, professional fees, and send-off costs, now averages £9,797, a 1.4% increase from the previous year.

Financial pressures continue to build for grieving families, some of whom can’t afford the send-off they’d like. This leaves families wondering what is driving these higher costs. The report helps give a snapshot of the challenges currently faced by bereaved family members.

Cost of Dying Report – 2025 (2)

Funeral Costs Continue to Climb

The average cost of a basic funeral has risen by 3.5% over the past year to reach an all-time high of £4,285. Another headline statistic here is that this marks a 134% increase since 2004, growth that is significantly faster than consumer inflation, which rose by 75% across the same period.

Direct cremations, a more affordable option that bypasses the traditional funeral service, remain popular due to their average cost of £1,597. This is especially true among those struggling to raise the necessary funds. Indeed, 26% of respondents indicated a preference for direct cremation in their funeral arrangements.

Financial Struggles and Changing Trends

18% of families reported experiencing significant financial concerns when paying for a funeral, often turning to alternative funding options, such savings, loans, or borrowing from relatives. It is also reported that families continue to resort to crowdfunding, an option that has doubled over the last 12 months. This is a worrying trend.

London is still the most expensive region for funerals, with average costs around £5,449, whereas Northern Ireland provides the most affordable prices at £3,441. The North East of England experienced the largest rise in average costs at 13%.

Personalisation and Trends

Notably, we British seek greater personalisation by moving away from tradition. Over half of funerals are now called ‘celebrations of life,’ with families incorporating personal touches and preferences, such as custom music, dress codes, and themed send-offs. As for exit songs, Frank Sinatra’s ‘My Way’ has reclaimed its title as the UK’s most-played funeral song, with Judy Garland’s ‘Over the Rainbow’ re-entering the top ten. It seems that classics never go out of fashion fashion. The use of technology is another growing trend, with 44% of funeral directors reporting an increase in families using video links and apps to enable remote attendance. This reflects more inclusive services that accommodate geographically dispersed families.

Professional Fees

Interestingly, costs associated with professional fees, namely estate administration, have recently reduced year-on-year by 3.5% to £2,652. This bucks the trend of the previous two years, where costs had increased by 6.6% in 2023 and 10.9% in 2022.

A Call to Plan Ahead

Perhaps unsurprisingly, despite the ever-rising costs, many families remain unprepared for the financial and administrative challenges of funeral planning. The report found that 51% of people did not know whether their loved ones preferred burial or cremation, while 18% were unaware of any funeral wishes. Just 26% of respondents had discussed their preferences with family.

Looking Ahead

As funeral costs continue to rise, families and funeral directors alike are navigating the challenges of affordability and changing consumer preferences. The industry is clearly changing, and options are increasing. However, the financial strain on families highlights the urgent need for both preparation and transparency.

The full report can be accessed here: https://www.sunlife.co.uk/funeral-costs/