Funeral Payments (Hansard, 9 January 1996)

§ Mr. Worthington
To ask the Secretary of State for Social Security what recent representations funeral directors have been made to him in respect of bad debts since changes in social security rules affecting funerals were implemented. [6060]

§ Mr. Andrew Mitchell
Although funeral directors have expressed the view that the changes to social fund funeral payments will result in debts, no specific examples have been received.

§ Mr. Worthington
To ask the Secretary of State for Social Security if he will list the levels of state assistance available to meet funeral expenses. [6058]

§ Mr. Mitchell
The social fund funeral payment scheme covers all reasonable costs of burial and cremation disbursements and in addition allows up to £500 for the funeral director's services, up to £75 because of a requirement of the religious faith of the deceased and up to £25 for flowers from the person arranging the funeral. Everyone who is entitled to help with arranging a funeral through the social fund is able to choose either a burial or cremation. Payments can, especially in the case of burials, exceed £1,000.
Local authorities in England and Wales have a duty under section 46 of the Public Health (Control of Disease) Act 1984 to arrange for the burial or cremation of the body of any person who has died or been found dead in their area where it appears to the authority that no suitable arrangements for the disposal of the body have been made. Similar provision applies in Scotland under section 50 of the National Assistance Act 1948.

§ Mr. Worthington
To ask the Secretary of State for Social Security if he will list the representatives of funeral directors he consulted before changing the amount of assistance given to people of limited means faced with funeral expenses. [6059]

§ Mr. Mitchell
Representatives from the Funeral Standards Council, the National Association of Funeral Directors and the Society of Allied and Independent Funeral Directors.

§ Mr. Worthington
To ask the Secretary of State for Social Security what calculations underlay the sum of £500 as the maximum grant for funerals for relatives without means. [6057]

§ Mr. Mitchell
The average amount awarded for funeral directors' fees under the funeral payment scheme prior to June 1995 was £749. The current scheme restricts both the type of coffin and the number of cars which may be provided. Therefore, the amount awarded should also be 161W lower. It is reasonable to assume that, with the state meeting the cost of 12 per cent. of all funerals, there will be some price competition in the industry which will tend to exert a downward pressure on prices.
Survey information collected by funeral directors' associations was also helpful. The Secretary of State took full account of that evidence when making final decisions on the precise specification for the new social fund funeral payments scheme. However, after careful consideration he concluded that £500 was a fair award for funeral directors' services,. balancing the needs of the funeral director, the customer, and the taxpayer.