Written question asked by Tony Worthington (Labour), in the House of Commons. It was due for an answer on Tuesday, 9 January 1996. It was answered by Andrew Mitchell (Conservative) on Tuesday, 9 January 1996 on behalf of the Department of Social Security.

Dept of Social Security

Question: What calculations underlay the sum of £500 as the maximum grant for funerals for relatives without means. - Inc figs.

Answer: 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 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.

Secondary information