According to the findings, the cost of a basic funeral increased by 80 per cent between 2004 and last year, aggregate spending on funerals in the UK could rise to £3.7bn in the next five years, the cost of a simple funeral is forecast to rise to £5,226 by 2020.

These upward trends further mean that ‘funeral debt’ (money borrowed to cover the cost of a funeral) in the UK could reach a quarter of a billion in less than 20 years. The report estimates that 109,000 UK citizens incurred funeral debt two years ago, with the average debt standing at £1,305 per person; in total, funeral debts incurred during that year equated to £142m.

These costs have calamitous implications for those already struggling with debt; at present, 14.5m families would not be able to pay for a funeral at short notice unless the deceased had taken out some form of funeral provision, such as life cover, to help towards the costs. Government Funeral Payments have not kept up with rises in funeral costs, either; three years ago, the average amount awarded represented just 37 per cent of the costs of a simple funeral. According to the research, more than one in four (22 per cent) people who have arranged a funeral in the past five years were obliged to do so without appropriate financial provision having been made by the deceased.

OneFamily believes these findings highlight a growing need for families to broach the delicate subject of end of life expenses.

“More than half of UK households have less than £3,000 in savings and many will struggle to cover funeral costs,” remarks Baroness Greengross of ILC-UK. “We all need to talk more about dying and ensure we are prepared for the inevitable. State support for funerals is complex and inadequate and without reforms will contribute to more people falling victim to funeral debt.”

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Simon Markey, chief executive of OneFamily, noted said “while the subject of end of life expenses can be a very delicate one to discuss, the findings highlight how starting this conversation could help avoid leaving loved ones with unexpected debts they may find difficult to manage.”

The full ILC-UK report can be downloaded for free by clicking here.