Understanding Bereavement Benefits and How to Plan Funerals on a Budget

Losing a loved one is incredibly tough, both emotionally and financially. In the UK, there are bereavement benefits designed to help you cope with the financial strain after a partner’s death. These benefits can include financial support to cover things like funeral costs and help with living expenses.

In this guide, we’ll explain the different types of bereavement support available and how you can plan an affordable funeral without compromising the dignity of your loved one.

What Are Bereavement Benefits?

Bereavement benefits are payments from the government to help individuals after losing a partner. The main benefit you can apply for is called the Bereavement Support Payment (BSP). This payment helps support you financially during a very challenging time.

Who Can Get Bereavement Support Payment?

To qualify for Bereavement Support Payment, you need to meet a few requirements:

• Your Relationship: You must have been married to your partner, in a civil partnership, or lived together as if you were married.

• Age and Residency: At the time of your partner’s death, you should have been under State Pension age, and you must have lived in the UK or another country that provides bereavement benefits.

• National Insurance Contributions: Your partner must have paid enough National Insurance contributions over the years, either through their work or due to a work-related injury or disease.

The good news is that Bereavement Support Payment is not based on your income or savings, so it doesn’t matter how much money you have or how much you earn. However, you cannot claim if you are in prison.

How Much Will You Get?

Bereavement Support Payment is made up of two parts:

1. The First Payment: A lump sum payment after the death of your partner.

   • If you have dependent children, you may receive £3,500.

   • If you don’t have dependent children, the payment is £2,500.

2. Monthly Payments: After the lump sum, you will get monthly payments for up to 18 months.

   • The amount is £350 per month if you qualify for the higher rate (if you were receiving Child Benefit for a dependent child).

   • The lower rate is £100 per month.

If you apply for the Bereavement Support Payment within three months of your partner’s death, you’ll get the full amount. If you apply later, the monthly payments might be reduced, but you can still apply up to 21 months after their death.

How to Apply for Bereavement Support Payment

You can apply for the Bereavement Support Payment in two ways:

1. By phone: Call 0800 151 2012 for a quick application.

2. By paper form: You can also apply by filling out a form. More details are available on the official government website.

If you live in Northern Ireland, the process might be slightly different, and you should check the nidirect website for more details.

What About Funeral Costs?

In addition to financial support from the government, the cost of a funeral can be a big concern. In the UK, funerals can be expensive, averaging about £4,285 for a simple attended service in 2025. However, there are ways to plan a funeral without spending too much money. Below are some ways to reduce funeral costs while still giving your loved one a respectful farewell.

1. Direct Cremation

Direct cremation is a simple and low-cost option. It involves the cremation of the body without a formal ceremony. The body is cremated, and the ashes are returned to the family. This option typically costs £1,626 - £2,232 less than a traditional cremation, making it a more affordable choice.

However, direct cremation is not for everyone. Some families may feel that this option lacks the emotional closure or ritual they desire, as it does not include a funeral service or ceremony. There’s no gathering of friends and family to say goodbye, which can leave many feeling that their loved one’s passing hasn’t been properly acknowledged. For families looking for a more personal or traditional farewell, direct cremation may not feel appropriate.

Another downside is that, in most cases, direct cremation doesn’t allow for any personal involvement in the cremation process. If you’re someone who values a more hands-on approach or wants to ensure every detail is in your control, this option might not suit your needs. There may also be additional costs if you decide later to hold a memorial or service after the cremation has taken place.

2. Green or Woodland Funerals

If you want a more natural and eco-friendly option, you could consider a green or woodland burial. These types of funerals take place in natural burial grounds and use biodegradable coffins. They tend to be cheaper because the plot and maintenance costs are lower than traditional burial sites.

3. Funeral Expenses Payment

If you’re on certain benefits, you might qualify for a Funeral Expenses Payment from the government. This payment helps cover the costs of a funeral if you’re responsible for making the arrangements. The amount you can receive depends on your situation, so it’s worth checking the eligibility criteria on the government website.

4. Prepaid Funeral Plans

A prepaid funeral plan allows you to plan and pay for your funeral in advance. This can lock in current prices, which could help your loved ones avoid paying for funeral costs later. It’s important to research these plans carefully, as costs and coverage can vary.

How to Save Money on Funerals

If you need to keep costs down, here are some tips for saving money on funerals:

• Compare prices: Don’t be afraid to shop around and compare funeral services. Costs can vary significantly, and shopping around could help you find a more affordable option.

• Shop around for the best deals: Just like when buying any other service, it's important to shop around when planning a funeral. Different funeral directors, crematoriums, and burial services may offer different prices. By getting quotes from multiple providers, you can choose the one that fits your budget.

• Ask about discounts: Some funeral homes offer discounts for certain days or times, so ask if there’s a cheaper option available.

• Consider simpler options: Choosing a simpler coffin or avoiding expensive add-ons (like flowers or memorials) can make a big difference to the overall cost.

At The Farewell Guide, we help you navigate funeral planning on a budget. Our service connects you with funeral providers who offer a range of affordable options, so you can compare prices and services to find the best fit for your needs. We make it easy for you to shop around, ensuring you get the best value while still giving your loved one a respectful farewell.

By taking the time to shop around and explore your options, you can make the funeral planning process more affordable while still ensuring your loved one is treated with care and respect.

Other Support for Bereaved Families

There are other forms of support available for those dealing with a loss:

1. Parental Bereavement Leave
   Parents who lose a child now have the right to two weeks of paid leave under UK law. This allows time to grieve and manage the funeral and other affairs during an incredibly difficult time.

2. Financial Advice
   If you’re struggling to manage the financial aspects of bereavement, it might be helpful to seek advice. Many charities and organisations offer free financial advice to help you understand what benefits you may be eligible for and how to manage your finances after a loss.

Conclusion

Dealing with the death of a loved one is hard enough without worrying about money. Bereavement benefits, like the Bereavement Support Payment, can provide essential financial support to help with funeral costs and living expenses.

At The Farewell Guide, we’re committed to helping you plan a meaningful funeral that fits your budget. Whether it’s by shopping around for the best deals or finding alternative funeral options, we can assist you in making the most informed and affordable choices. By researching and comparing services, you can ease the financial burden on your family while ensuring your loved one’s memory is honoured with respect and dignity.

If you need help navigating bereavement benefits or funeral planning, we’re here to support you every step of the way. Let us help you find the best funeral services, tailored to your needs and budget, to give your loved one a farewell they deserve.