Funeral Payment Plans UK: Installments, Loans & Benefits Guide

Most UK funeral directors offer payment plans and financing options to help spread funeral costs over time. This guide explains all available payment methods, from installment plans to government benefits, helping you manage funeral expenses affordably.

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

1. Funeral Director Installment Plans

MOST COMMON

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.

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

Compare Funeral Directors Offering Payment Plans

Not all funeral directors advertise payment plans, but most offer them. Compare quotes from 3 local providers and ask specifically about installment options.

Compare 3 Funeral Directors →

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.

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:

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.

Find Funeral Directors Offering Payment Plans

Get instant quotes from 3 local funeral directors and compare their payment options. Many offer flexible installment plans to suit your budget.

Compare Funeral Directors Now →

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.

Funeral Payment Plans UK: Complete Guide