Co-op drives down funeral costs

14 March 2018

• Launches upfront member discount taking £183 on average off the price of a funeral
• Holds price on most affordable funeral option for second year running, with member price now £1845
• Announces 50 per cent increase in clients opting for most affordable funeral option
• Calls for review to address the declining value of the social fund

The Co-op has announced a third range of measures aimed at tackling funeral costs and driving down price.

From the 20th March (2018) any Co-op member who sadly suffers a loss and makes arrangements with Co-op Funeralcare will now receive a 5% upfront discount on costs. On average this is expected to save Co-op members £183 off funeral costs.

The announcement follows a number of measures already launched by the Co-op to tackle funeral affordability.

In 2016 the Co-op took 7% or £140 off the average cost of its most affordable funeral option, the Simple Funeral, with this price having been held since then. In addition to the £140 average cost reduction launched in 2016, members opting for the Simple Funeral* will now receive an upfront discount of £150, taking the member price for Co-op’s services to £1845 excluding third party costs.

As well as passing an additional discount to members, the Co-op has also committed to continuing to hold the price of its most affordable funeral proposition for the second year running during 2018. During the course of 2017, the number of clients opting for the Co-op’s Simple Funeral doubled, which the Co-op attributes to improvements to the proposition launched during 2016.

With over 200,000 UK adults expected to pre-plan their funeral in 2018, Co-op’s 4.7 million members will also be eligible for a discount of at least £150 on Co-op’s market leading funeral plans. This follows the recent launch of a new Co-op Commitment providing additional reassurance for clients taking out plans paid by monthly instalments**.

In addition to the measures being taken by the Co-op, ahead of changes coming in from Department for Work and Pensions next month*** to assist with claims for funeral support, the national provider is also calling upon Government to urgently review the value of the social fund.

The fund which was introduced to support eligible families with funeral costs has been capped at £700 since 2003 and currently meets only 30-40 per cent of the average total funeral cost.

Commenting on the changes, Robert Maclachlan, Managing Director of Co-op Funeralcare and Later Life Planning said:

“Funerals are becoming increasingly price sensitive and this is something we have focused on providing solutions to, without compromising on our high standards of service and care. As a member owned organisation, we’re committed to giving something back. These changes are part of our focus on being right by our 4.7 million members at a time when they’ll need us most.”
“National funeral debt continues to rise and as the social fund fails to keep up, families face a struggle in balancing costs with providing the send-off their loved one would have wanted. In addition to reviewing the value of the fund, there needs to be upfront transparency, so that families who are struggling with funeral costs understand upfront how much support they will receive.″

ENDS

Media Contacts:

Lauren Pogson
Senior PR Manager
Email: Lauren.Pogson@coop.co.uk
Mobile: 07702 505626

Sarah Pyatt
Press Officer
Email: Sarah.Pyatt@coop.co.uk
Mobile: 07850 002 312

Notes to editors:

FOR MEDIA PURPOSES ONLY

*A Co-op Simple Funeral provides essential funeral services at a set national price of £1995 or £1845 for Co-op members. The price is exclusive of third party costs. Whilst prices vary nationally, on average third party fees costed our clients £1085 in 2017 and cover payments made to others on the client’s behalf for example the minister, doctor (excluding Scotland), crematorium or church.

The Co-op Simple Funeral includes: - Removal of a loved one from their place of death into our care - If death occurs out of normal working hours, at home or in a care home, we remove a loved one into our care, out of hours, at no extra cost - Provision of a Simple Coffin - We prepare, care for and dress a loved one in a gown to match the interior of our ‘Simple Coffin’ - Respectful care of a loved one and visiting of a loved one during normal working hours at no additional charge - Transportation from the funeral home to the crematorium or cemetery in a hearse at the appointed time of the service - All necessary arrangements made by our colleagues for a dignified funeral, attendance of our Funeral Director at the funeral to support and guide families through the funeral

** Customers taking out a funeral plan with the Co-op and opting to pay in monthly instalments over 2-25 years can now benefit from the Co-op Commitment. This means that if the customer passes away before they’ve paid for the plan in full, the family or next of kin can rest assured that they won’t need to cover any financial shortfall for the funeral as they will receive the full services in the plan.

The new feature, called the Co-op Commitment forms part of a wider focus on improving the funeral planning market for consumers. It has been launched to complement Co-op’s comprehensive range of funeral plans, which can be paid for upfront in full, over 6 or12 months, or via low cost monthly instalments over 2-25 years. Prices start from £2995 upfront or £16.68 per month on monthly instalments**. Co-op is the only UK funeral plan provider to offer this level of cover with their plans.

Currently across the funeral planning market where someone passes away before instalments have been fully repaid on a funeral plan, it is commonplace for other providers to refund fees paid to date rather than covering the funeral in full. This can potentially leave families with an unexpected financial shortfall on the costs of the funeral.

***Further information on the changes to the social funeral fund can be found here: https://drive.google.com/file/d/1_yoTpy774YHxSKyDSlTlK4jrXIKMmGzn/view http://www.legislation.gov.uk/uksi/2018/61/body/made

About Co-op Funeralcare:

Co-op Funeralcare conducts almost 100,000 funerals annually across over 1,000 funeral homes. Combined with its leading legal services business, the Co-op is also a national provider of later life products and services ranging from funeral plans, through to wills and probate. Co-op Funeralcare has been recognised as the Best Funeral Plan Provider in the 2018 Moneynet Personal Finance awards, its funeral plans have also been awarded 5 Star ratings by Fairer Finance and its Gold plan was recognised with a 5 Star rating by Defaqto.