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."