Funeral poverty fund aims to help more families

Scotland's social security department is preparing to take control of a benefit which helps families pay funeral expenses.

The new fund, which will make payments to low income families who have suffered a bereavement, will go live on 16 September.

It replaces the Department for Work and Pensions' funeral expense payment.

The Scottish government says up to 2,000 more applicants will be eligible for the Scottish benefit.

The move has been generally welcomed by charities but one said there was still too big a gap between the payments and the cost of a funeral

Age Scotland warned that people would get themselves into debt to give a loved one a "decent send-off".

Funeral support payments were launched by Social Security Scotland as one of 11 benefits being devolved to the Scottish government during this parliamentary session.

Applicants must already be on some form of benefits such as universal credit, income support or disability allowance.

People can apply by post, on the phone or online.

The three elements of the payment are for burial or cremation costs, a flat rate for expenses such as funeral director fees, flowers and coffins, in addition to certain transport costs. It is believed this flat rate will amount to £700 for most applicants.

The amount awarded will be dependent on burial and cremation costs in the local authority.

While the benefit was run by the DWP, the average funeral expense payment was £1,372 in the last financial year.

2016 average Scottish Local Authority burial charge - £1,363

2016 average Scottish Local Authority cremation charge - £669

The average funeral director fee for a basic funeral in Scotland is about £2,000

The average cost of a basic funeral in Scotland in 2016 was £3,716

Source: Scottish government

Social Security Secretary Shirley Anne-Somerville said she was committing to increase the payments in line with inflation, unlike the UK government scheme that the fund replaces.

She added: "Coping with the death of a loved one is one of the most tragic events any of us can face. At that difficult time, it's even harder when there's extra stress finding the money to pay for a funeral.

"Our new funeral support payment has been designed and tested with members of the public and stakeholders including funeral directors and welfare advisers to ensure the end product is one we can be proud of.

"The new support will reach far more people struggling with funeral costs and is backed by around £2m additional funding.

"This is a demand-led benefit and forecasts are that we will invest more than £6m in support in the first full year of operation.

"As with the best start grant, we will encourage people to apply and get this financial support."

A key difference from the DWP's implementation of the benefit is that the Scottish government has said it will not seek to prove that there is a closer member of the family if someone else who is eligible for the payment can show they are paying for the funeral.

Because applications can be accepted up to six months after the funeral has taken place, some applicants who were refused financial help from the DWP may now be eligible for the Social Security Scotland assistance.

The Scottish government claims this will increase the number of funeral support payments by 2,000 annually - a 40% rise, taking the total number to 5,600 per year in Scotland.

Brian Sloan, Age Scotland's chief executive, said: "Far too many older Scots are pushed into poverty following a bereavement, causing a huge amount of stress at an already distressing time. We hear from people who are suffering financial hardship who feel forced to take on extra debt just to give their family member a decent send-off.

"This new payment will help many more people meet the growing burden of funeral costs.

"However, there's still a considerable gap between the average payment and actual cost of a funeral. We'd like to see this reviewed in future years to help people avoid getting into debt paying for a modest, yet respectful, funeral for their loved one."

Derek Mitchell, chief executive of Citizens Advice Scotland, welcomed the launch of the payment.

He said: "We made the case for the payment to be increased so it keeps pace with the cost of living and widen eligibility so more people can claim it, and we are delighted the Scottish government listened.

"A funeral can put massive pressure on finances, heaping stress on grieving families. This payment in delivering support to families during that period and delivering some security and peace of mind, will be invaluable."