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Written question asked by Ayoub Khan (Independent (affiliation)) on Friday, 26 June 2026, in the House of Commons. It was due for an answer on Tuesday, 30 June 2026. It was answered by Rachel Blake (Labour) on Thursday, 2 July 2026 on behalf of the Treasury.

Cremation and Funerals: Pre-payment

Question

To ask the Chancellor of the Exchequer, whether her Department plans to review the current exemption for Local Authorities from Financial Conduct Authority regulation for pre-need funeral and cremation services.

Answer

The Government legislated in 2021 to bring pre-paid funeral plan providers and intermediaries within the regulatory remit of the Financial Conduct Authority (FCA). This made it illegal for firms to sell pre-paid funeral plans without authorisation from the FCA, protecting 1.6 million customers and their families.

In the preceding public consultation in 2019, the Government stated it had not seen evidence that plans offered by local authorities required regulation from a conduct or prudential perspective. The Government therefore proposed that local authorities should be excluded from FCA regulation, and this position was maintained in the consultation response published in March 2020. The Government is committed to regulating only where there is a clear case for doing so.

Pre-paid funeral plans bought from local authorities fall outside the remit of the Financial Services Compensation Scheme or the Financial Ombudsman Service. Residents who are unhappy with the service they have received can raise a complaint directly with their local authority. Where a complaint remains unresolved, residents in England can submit a complaint to the Local Government and Social Care Ombudsman.

Secondary information

Type
Written question
Reference
13720
Session
2026-27
Grouped for answer
Yes
Subjects
Cremation Exemptions Funerals Local government Regulation Pre-payment Financial Conduct Authority
Link
View this Written question on www.parliament.uk