Caroline Siarkiewicz, Chief Executive of the Money and Pensions Service said:
“The new regulations for funeral plans will ensure plans better meet people’s needs, while ensuring their money is looked after and used responsibly, as well as being protected by the Financial Services Compensation Scheme (FSCS) if their plan provider goes bust. When considering taking out a funeral plan, make sure you select a regulated provider which can be found on the FCA’s website.
“If you already have a funeral plan, it’s important to understand how these changes might affect you. Firstly check if your provider is authorised by the FCA. If your provider hasn’t applied for authorisation yet, or isn’t going to, they should contact you to tell you what’s happening with your plan. If you haven’t heard from your provider, contact them directly.
“We know the average cost of a basic funeral is around £3,800, so this can be a significant expense for you or your loved ones. Preparing in advance helps ease this process at a difficult time and also lets those organising your funeral observe your wishes. Funeral plans are one way to ensure a funeral is affordable, but there might be other ways to save up. Our MoneyHelper website has guidance on ways to pay for a funeral, and will help you understand the pros and cons of each option.”
Notes to editors
About the Money and Pensions Service
The Money and Pensions Service (MaPS) is here to ensure every person feels more in control of their finances throughout their lives: from pocket money to pensions. When they are, communities are healthier, businesses are more prosperous, the economy benefits, and individuals feel better off. MaPS delivers free and impartial money and pensions guidance to the public through MoneyHelper, which recently brought together legacy services the Money Advice Service, The Pensions Advisory Service and Pension Wise.
MaPS is working to make sure the whole of the UK understands that financial, physical and mental health are all deeply connected. MaPS’ role is to connect organisations with the shared purpose of achieving the five goals set out in the UK Strategy for Financial Wellbeing.
MaPS supports innovation so that everyone can use the most effective methods to help people feel more in control of their money, targeted to those most in need and inclusive of people from all backgrounds. MaPS is an arm’s-length body sponsored by the Department for Work and Pensions (DWP).