Kiwis' $42m funeral bill: dignified farewell doesn't come cheap

Thursday, 25 July 2019

Giving the poorest members of society a dignified farewell has cost Kiwi taxpayers $42 million over the past five years. 

It may sound like a lot - but the handouts don't allow a lavish send-off.

And it's not only the down and out who struggle to fund their final farewell. Some elderly are so concerned about leaving a legacy of debt that they sacrifice their standard of living to cover the cost of their death. 

For those that can't afford the funeral of a loved one, they can apply to the Ministry of Social Development for a grant of up to $2093.31. 

**READ MORE:

* Flat-pack coffins and the Kiwi way of death

* Funeral directors urge council to be 'careful' of increasing burial, plot fees

* Call for funeral assistance grants to be expanded to cover costs**

In the years between 2014 to 2019, $42,935,230.60 was paid out in funeral grants nationwide. 

Auckland Metro had the largest spend, with $10, 709,151.70 while in the Waikato $3,069,791.84 was granted. 

But for the clients of Hamilton's Seddon Park Funeral Home - the grant is usually used as a top-up of the funeral costs.

About 25 per cent of their families would be applying for a grant and receiving it, managing director Matthew Sadlier said.

'The cost of cremation at the Hamilton City Council is $620, a very basic casket is $500, the issuing of a death certificate is $33. We need to pay a doctor on behalf of the family to issue the necessary paperwork required and that is anywhere between $80 to $200. 

'That has got to go to a medical referee and that is about $40 - they check all the paperwork so the cremation can take place. As part of the grant, they will pay for a newspaper death notice which can be $100 upwards. So we struggle to provide adequate service for that sort of money.'

At Seddon Park Funeral Home the average cost for a funeral is around $7500 for a cremation which includes catering for 100 people, service sheets, a newspaper notice, flowers, and a basic casket. If you want a burial you add around another $4000. 

They do have a pre-paid funeral trust which people can pay for their funeral in advance. 

Hamilton budgeting advisory trust manager Tony Agar wouldn't like to see people saving for a funeral at the sacrifice of their basic living costs. 

'With our older clients, it's down to them [if they save for a funeral]. We are a bit more concerned about their current lifestyle and cost of living if they can cover their basic living costs of food and shelter. As we do see some clients that go short of food, not have heating or lighting because they're putting money aside for their funerals,' Agar said. 

He understands that a lot of older clients don't want to have the burden of their funeral costs fall to their family. So it's about finding a balance with what is affordable. 

He suggests that people use a savings account which they can make clear is to be used for their funeral - as that way the money is gaining interest. 

'We do see quite a lot of clients that pay money into a funeral parlour - they have a funeral savings plan with some of the funeral parlours around. 'That is fine but it really does depend on how much they can afford. 

'My experience in the past clients have put money aside for funeral payments and they have lost that money - for various reasons - one being the place has gone out of business. So it's also having safeguards for that too.' 

Kay Read, Ministry of Social Development group general manager of client service delivery, said they assisted people in a number of ways during stressful times in their lives, like the loss of a loved one. 

'We provide funeral grants to help those who have no other means to meet the costs of a funeral. While we don't cover the whole costs of the funeral which is actual and reasonable costs only, in general, our clients do not have to pay the funeral grant money back,' Read said. 

Funeral grants are income and asset tested.

The grant covers such things as professional services with regard to preparing the body for cremation or burial - for example embalming, cost of a casket, newspaper notice costs, hearse fees, compulsory fees for the purchase of a burial plot, cremation fees. 

Funeral expenses that arise from choices, such as flowers and donations to clergy or musicians are not covered by the grant. 

Other government agencies such as ACC and Veterans' Affairs can also assist with funeral expenses.