Victims of bankrupt funeral companies left with nothing – is your plan safe?

Victims of bankrupt funeral companies were left with nothing, ITV News Consumer Editor Chris Choi reports
People who bought funeral plans from companies that collapsed have told ITV News they are calling for a public inquiry.
Safe Hands Plans Limited and One Life Funeral Planning left tens of thousands of customers without funerals – and without the money they’ve paid.
After struggling to pay for her husband’s final arrangements, Christine Hughes, 77, paid for her own funeral.
She did it for peace of mind, but what she has got is worry. The company Safe Hands Plans Ltd went bust two years ago.
“It cost me £4095, and it was basically all the money that I’ve got in the bank. When I paid for my funeral plan, I had about £100 left,” Christine told ITV News.
“I wanted a proper send off so my family could say goodbye properly. Now that’s not going to happen because I can’t get that money again to pay for another funeral.”
Christine said she felt others like her hadn’t been supported in the wake of Safe Hands Plans Ltd’s collapse.
She said: “I feel hurt, I do feel let down and I think I speak for many people when I say we feel that we’ve just been pushed to one side and nobody’s interested.”
ITV News has learned that the administrators of the collapsed Safe Hands Plans Ltd are about to make an announcement on available funds – but it’s expected to be only a fraction of what plan holders paid.
An ongoing fraud investigation into the collapsed firm is underway, with millions of pounds believed to be in the Cayman Islands.
Since July 2022, funeral plans have been regulated by the Financial Conduct Authority, including compensation if firms go bust.
Safe Hands Plans Ltd, with 70,000 customers, collapsed in 2022. One Life Funeral Planning Ltd, with 13,700 plan holders, went bust after officials refused to authorise the company under the new rules two years ago.
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Is your funeral plan safe?
Financial campaigner James Daley from Fairer Finance says officials should have known money was at risk and should have acted.
He said: “Many people are still unaware they have got plans that are worth nothing.
“It is time that the government steps up and says, ‘We let a lot of people down here, let’s look at why that happened, make sure it never happens again in any other sector, and try to help those people who have already paid for a funeral’.”
The latest estimates reckon one in six funerals are now paid for via a funeral plan.
Any bought after July 2022 from authorised providers will be protected by the Financial Services Compensation Scheme – this means your money is protected if the company fails.You can check whether your funeral plan is covered by Financial Conduct Authority (FCA) compensation rules here.
The FCA website also has warnings about funeral plan firms that did not become authorised, and therefore should not be selling plans.
We asked finance campaigner James Daley of Fairer Finance to give some tips for those buying funerals in advance.
Fairer Finance’s James Daley gives a breakdown of what to consider when buying a funeral plan
Check that the firm is FCA regulated
To make sure of this, look on the FCA’s register. If the company is on there, then you can buy with confidence and know your money will be protected if the firm goes bust.
Be sure of what is covered on the funeral plan
There is a lot of difference in the market. Some guarantee all the core costs, such as the cost of a crematorium.
Others, such as a contribution plan, just have a pot of money to put towards those third-party costs.
Stay aware of flexibility
People’s circumstances do change, and some funeral plans will not move with you.
Some firms do not allow you to move your plan, and you may face a hefty cancellation fee.
A HM Treasury spokesperson said: “Once concerns were raised about the funeral plan market, we made it illegal to sell pre-paid funeral plans without authorisation from the Financial Conduct Authority – protecting 1.6 million customers and their families.
“As the Serious Fraud Office is conducting a criminal investigation into Safe Hands Plans Limited, it would not be appropriate for the government to comment further at this time.”
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