FUNERAL POVERTY IN SCOTLAND A REVIEW

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1 FUNERAL POVERTY IN SCOTLAND A REVIEW FOR SCOTTISH GOVERNMENT Authors: John Birrell, Chair of the Working Group on Funeral Poverty and Fraser Sutherland, Citizens Advice Scotland. SCOTTISH GOVERNMENT RESPONSE 1

2 SCOTTISH GOVERNMENT RESPONSE The welcomes this report and thanks John Birrell and Citizens Advice Scotland for their thorough and comprehensive review. The report was commissioned by the Cabinet Secretary for Social Justice, Communities and Pensioners rights in October 2015, to allow for work on funeral poverty to progress alongside the development of a new funeral payment, following the transfer of powers under the current Scotland Bill. It was published on 3 February We recognise how stressful it can be to have to arrange a funeral and the impact that meeting the costs can have on a bereaved family, especially when money may already be tight. We also know that the number of families affected is likely to increase in the future unless the current trends in rising funeral costs change. Pressures on family budgets makes it difficult for people to plan ahead for the expense of a funeral, especially given the steep rise in costs in recent years. Support for people who are not able to afford a funeral falls well short of need. Early indications from our analysis of need in connection with the development of the successor benefit to the DWP Funeral Payment shows that as many as 40% of people who are bereaved may be in receipt of a qualifying benefit for a DWP funeral payment. This would be around people a year in Scotland while there were only 4,300 1 DWP Funeral Payments in Scotland in We also know that the Work and Pensions Committee also has concerns about the current provision in this area and it is currently undertaking a review of Bereavement Benefits. Powers over DWP s funeral payment will be devolved to Ministers when the current Scotland Bill is passed and as agreed as part of the Smith Commission recommendations. As the report points out, the payment at present is complex and inadequate. The is working closely with stakeholders in the development of a successor benefit to the DWP Funeral Payment. The report chimes with some of the views and ideas that have been expressed through this process and the wider stakeholder engagement programme the has been conducting as part of the Creating a Fairer Scotland agenda. We believe devolution of powers over the Funeral Payment provides an opportunity to set up new benefits which are better integrated with policy and to develop simpler, more streamlined delivery. However a social security funeral payment cannot solve the whole problem of funeral poverty which, as the report effectively illustrates, is a result of a combination of factors which require action in a number of sectors. The wants to take a more coordinated approach to help bereaved families on low incomes organise a respectful funeral without taking on unsustainable debt, and to manage the need for the funeral payment in the longer term. We are able to accept, in principle, almost all of the recommendations that are for Ministers and plan to progress these alongside the development of the successor benefit to the DWP funeral payment. This is a long term objective and we 1 Hansard response to Written question October

3 look forward to taking steps, alongside the other organisations referenced in the report, to reduce funeral poverty in the future. We propose a coordinated set of activity including: Bringing key players together and raising awareness of the issues through a series of round table discussions, led by the Cabinet Secretary for Social Justice, Communities and Pensioners Rights and a national conference to focus on actions. We will look to the funeral industry, local authorities and stakeholders from other organisations with an interest to come together to reduce funeral costs and keep prices down, make more affordable options available and provide appropriate support to those who need it. Prompting others to act by writing to relevant UK Ministers, the Financial Conduct Authority (FCA) and other organisations to which recommendations are targeted, sending the report and highlighting issues where recommendations relate to their organisations, asking for a response. Recognising that one of the stresses caused in the process is delays in hearing about an award decision, we would aim to process applications within ten working days of receipt of a completed application and make payments as soon as practicable thereafter. We believe that this will create more certainty for funeral directors, allowing them to give appropriate advice and potentially eliminating the need to take a deposit from those who make a successful application. Consideration of a new funeral bond to help people prepare for the cost of a funeral. A new stakeholder reference group to ensure that the processes for the successor to the DWP funeral payment meet the needs of users and forms part of a more coherent package of support. Support for greater public and personal discussion of bereavement, death, dying and care at the end of life, including commissioning work from public service agencies in health and social care but also others such as schools, colleges and prisons. Work with stakeholders to ensure that there is coherent and up to date public information available through stakeholder communications and leaflets such as What to do when somebody dies, What to do after a death in Scotland and the newly launched Arranging a Funeral? and on line via NHS inform, Mygov.scot and Scotland s Financial Health Service web-site. Putting in place arrangements to monitor funeral poverty going forward, as part of the evaluation of the new funeral payment, so that we can see whether our interventions are working and what more we might need to do. This builds on the work that SG already has under way in a range of connected areas. In particular: Steps taken through the current Burial and Cremation (Scotland) Bill which contains provision for the re-use of burial lairs and for powers which will allow Ministers to introduce a licensing scheme for funeral directors. Scotland is leading the way in tackling the rising costs of funerals by removing the doctors fee for the bereaved in May 2015, a saving of

4 The s Scotland s Strategic Framework for Action on Palliative and End of Life Care, supported by an additional 3.5 million funding over four years. This Framework recognises the need to create a culture of openness about death, dying and bereavement in Scotland. Finding opportunities to work with the medical profession and the wider public, across educational establishments, business, faith groups, community organisations and creative industries to develop a new culture and national conversation which engages with this topic. Funding for NHS Education for Scotland (NES) to develop an interdisciplinary approach to the development of training and education for staff, patients, families and carers in the care of the dying and bereaved. Main findings The report has 25 recommendations for a variety of different organisations which are detailed, along with the response where appropriate, in Annex A. The main findings are: There is a wide range of interests who have a role to play and which require coordination to have an impact on the issues. These include the UK, the and Local Authorities, the Funeral Industry and the third sector. Local Authority and funeral director costs vary widely and are consistently increasing. The recent rise in funeral costs and the failure of DWP s funeral payment to keep pace means that paying for a funeral is a significant financial shock and there is a substantial shortfall between the cost of a funeral and what people can afford. The report makes recommendations for a number of organisations on how they can support people to meet the shortfall. While insurance products and pre-paid funeral plans can provide a solution, there are concerns about transparency and security. The reluctance to talk about death and dying contributes to the problem. People need a higher level of funeral literacy to safely navigate the system. Next steps As indicated in our response above there is a range of actions that we will be looking to take forward with stakeholders and interested parties to support John Birrell s recommendations. Social Security Division February

5 Recommendations No Recommendation Who is responsible 1 We recommend that in the light of the cross-cutting nature of Ministers matters relating to dying, death and bereavement, attention should be given to the possibility of development of a coordinator role, perhaps by nomination of a lead minister. This role would be tasked with ensuring consistency in approach to death and bereavement in government, assisting to avoid the duplication of work and act as an advocate on behalf of the bereaved to ensure their voice is heard in decision making processes. Who is impacted Outcome for Funeral Poverty Response All sections of Consistency of approach Sharing of best practice Potential development of national strategy We recognise the impact of death, dying and bereavement and, in particular the stress that can result for low income families. There is already an active network of policy areas with an interest in death and dying, across the. We have identified a lead policy team to carry forward implementation of the recommendations of this report and it will work with that network to highlight the need for on-going coordination. 2 We recommend that facilitate greater public and personal discussion, to encourage open and honest conversations around dying, death and bereavement. This should include all departments, as well as public service agencies outside of health and social care, such as schools, colleges and prisons. This should support the work of the national alliance Good Life, All sections of Other public service agencies Third Sector agencies Widening debate Encouraging public participation Tackling stigma Scotland has a rich community of practice around palliative and end of life care. NHS, social services and care home workers deliver care to people with advanced illness and to their families, using well developed palliative care approaches. Work is undertaken by the Partnership for Palliative Care and its public engagement arm Good Life, Good Death, Good Grief. Independent hospices make major contributions to their local communities. National charities provide services, leadership and support for innovation. Academic palliative care expertise exists in universities and colleges and there are 5

6 Good Death Good Grief. established training and accreditation programmes. But we know there are gaps in our knowledge and inadequacies in coverage. The Framework for Action attached to Scotland s Strategic Framework for Action on Palliative and End of life Care contains 10 Commitments Commitment 6 specifically focuses on this area and states that will support greater public and personal discussion of bereavement, death, dying and care at the end of life. This will include commissioning work from public service agencies outwith of health and social care such as schools, colleges and prisons. Local Plans to enhance the public health focus of public health provision on palliative care will also be supported. 3 We recommend that the UK and Financial Conduct Authority (FCA) review the current selfregulation environment for funeral plan providers, including the exemption under the Financial Services & ministers UK FCA Funeral plan providers Purchasers of funeral plans Protecting vulnerable consumers Ensuring best value Clarity of what is provided Protection of funds invested The Framework is supported by an additional 3.5 million funding over four years which is being used to drive improvement across the sector and to support targeted action. This will be made possible through the promotion of collaborative working to harness the knowledge, skill and vision of those who work and volunteer, families and carers and with members of the public. While we are aware that there are arguments on both sides, we agree that the time is right for the FCA to review the status of funeral plans and will write to the FCA and the UK to request that this review takes place. 6

7 Markets Act 2000 for funeral plans to ensure that plan providers are robustly protecting client funds and sale practices do not take advantage of vulnerable consumers. 4 We recommend that the FCA consider current intelligence and consumer complaint volumes and trends through the Financial Ombudsman Service regarding Whole of Life, Over 50 s and similar types of insurance plans to decide if a thematic review of this market would be beneficial in protecting consumers interests. FCA Insurance providers Purchasers of insurance products Protecting vulnerable consumers Ensuring best value Clarity of what is provided We have heard stakeholder concerns about Over 50 s insurance and will raise this with the FCA 5 We recommend that the Burial and Cremations Bill is amended to give specific provisions for who is responsible for a national assistance funeral when someone dies in prison. Alternatively we would welcome much clearer guidance on the issues to ensure a consistent approach for prisoners families across Scotland. 6 We recommend that the undertake further research to better understand the numbers Parliament Prison Service Local authorities Prisoner s families Funeral industry NHS Scotland Third sector agencies None directly Facilitates better strategic planning Lays baselines for audit And for measuring outcomes Section 56 of the Bill places local authorities under a duty to make arrangements for the disposal of the remains of anyone who dies or is found dead within their area and noone else appears to be making arrangements. The section makes no mention about the location or circumstances of the death because it has universal application as such, it would apply to anyone who died in prison. In this situation, the responsibility would clearly lie with the local authority in which the prison is located. As such, we don t intend to amend the Bill in this regard. We recognise the need for a systematic evidence base to underpin our policy making in this area and will consider this recommendation alongside longer term 7

8 of people in Scotland affected by rising funeral costs and how this impacts on their ability to afford a respectful funeral for their loved one and how it impacts their experience of grief. plans to gather evidence to evaluate the impact of the new benefit which will be developed to replace the DWP s funeral payment 7 We recommend that proceed with the licensing of funeral directors under the Burial and Cremation (Scotland) Bill 2015, requiring them individually and collectively to adhere to a code of practice drawn up by Ministers, and urge that issues raised in this report be taken account of in such a code. Parliament government Funeral directors Consistent standards of practice regardless of affiliation to trade body Better accountability Consumer protection The Bill contains a power for Ministers to introduce a licensing scheme for funeral directors. It will be for Ministers to choose whether or not to implement such a scheme, subject to the successful passage of the Bill. 8 We recommend that trade bodies review the current level of engagement by consumers making complaints to current alternative dispute resolution that is provided and consider removing fees charged to consumers, both upfront and as the result of an award, to ensure an open and accessible process. Trade bodies Complainants regarding items and services Increased confidence in procedure Robust redress processes Affordable, accessible complaints procedure The will raise this with the relevant organisations. 9 We call on all Local Authorities to accept that rising burial and cremation costs are one cause of increasing funeral poverty. We recommend to all local authorities that in fulfilling the Local authorities in Scotland Local authorities Funeral directors Fairer pricing of burial and cremation services N/A 8

9 duty to review their costs for burial and cremation (as proposed in the Burial and Cremation (Scotland) Bill 2015, they should give due attention to the impact of these costs on funeral poverty and seek ways to reduce, or at least limit, these charges. 10 While we recognise the independence of councils, and the government s reluctance to interfere with budgets, nevertheless we believe this is an area which Ministers should act. We recommend that the Ministers consider amending the Burial and Cremation Bill Section 20 (2) and Section 45 (2) to require local authorities to justify any increases in burial/cremation charges beyond the CPI, and to pursue the move towards parity in the context of the Fairer Scotland agenda. ministers Local authorities Consistency of costs across Scotland Clearer justification of increases Better understanding of future pricing trends We do not intend to implement this recommendation. However, we are considering whether to amend the Bill so that local authorities are required to publish all fees relating to burial and cremation. 11 We also recognise that not all cemeteries and crematoria come under local authority management, and so we would address a further recommendation to those under private control. We invite private operators of cemeteries and crematoria to note the intention of this section, and to exercise similar restraint as is Private operators of burial and cremation services Private operators of burial and cremation services Consistency of costs across Scotland Clearer justification of increases Better understanding of future pricing trends The will seek to work with the operations of private burial and cremation services to progress the recommendations in the report. 9

10 here being required of local authorities. 12 We urge to put pressure on the UK government to address the decreased value in real terms of the other costs element of the Social Fund Funeral Payment by seeking, along with UK government, to restore its value to cover the average cost of a basic funeral. Ministers UK Ministers DWP DWP claimants Social Security unit Funeral directors Increased support for bereaved families Earlier awareness of support available More clarity in funeral arrangements We share the concerns identified in the report about the inadequacy of the current DWP funeral payment. We have heard the same messages through our stakeholder engagement to develop a successor benefit. This is of particular concern since, through the fiscal framework, it is likely that low spending on this benefit will result in inadequate resources being transferred to Scotland for the successor benefit. Ministers will write to DWP Ministers expressing these concerns, highlighting the low level of spend which is likely to mean that compromises need to be made in designing the successor benefit. 13 We urge to seek ways of improving on the Social Fund Funeral Payment to ensure the new equivalent benefit: is accessible to all who need it is supported by a straightforward application process has a decision process which allows for a timeous response recognises the uniqueness of family structures is set at a level to allow for the full payment of a basic funeral in any part of Scotland claimants Social Security unit Funeral directors Increased support for bereaved families Earlier awareness of support available More clarity in funeral arrangements We have engaged with a wide range of stakeholders to date to identify concerns about the operation of the current funeral payment and generate options for a better successor benefit. Will take all of the factors listed in these recommendation in to account as we develop a successor benefit and will continue to engage with stakeholders as we develop and refine our options. This will include setting up a bespoke stakeholder reference group to advise on the development of the successor to the DWP funeral payment. In particular, recognising that one of the stresses caused in the process is delays in hearing about an award decision, we would aim to process applications within ten 10

11 14 We recommend that Ministers ask the Law Society of Scotland to look at the clarification or creation of regulations allowing for the withdrawal of funds held in the name of a deceased person in order to settle funeral accounts. 15 We recommend that Ministers explore working with credit unions and community development finance initiatives to explore how resources can more readily be made available to those arranging a funeral. Ministers Law Society of Scotland Credit Unions Solicitors Executors of estates Funeral directors Credit Unions Other community funding bodies More timely availability of funds to settle accounts Less stigma for families where accounts have not been settled Better access to affordable finance working days of receipt of a completed application and make payments as soon as practicable thereafter. We believe that this will create more certainty for funeral directors, allowing them to give appropriate advice and potentially reducing the need to take a deposit from those who make a successful application. We will raise this issue with key stakeholders The recognises the valuable role that credit unions play as responsible financial services providers, which promote long term saving. We will consider this recommendation alongside the work resulting from the Credit Union Working Group report which is due to be published in February We recommend that the Burial and Cremation (Scotland) Bill 2015 be amended to stipulate a respectful and dignified funeral is consistently carried out across Scotland under the provisions in Section 56 rather than simply providing a mechanism for disposal. Local authorities Funeral directors Burial and cremation authorities More confidence in the dignified and respectful disposal End the stigma of pauper s funeral We intend to provide guidance on this subject, but do not intend to amend the Bill as suggested. 17 We recommend that sponsor an General public Better informed purchasers Ensuring best value. We have recently published a leaflet Arranging a Funeral? which is designed to 11

12 ongoing publicity campaign to increase the public s awareness of issues connected with funerals, in particular increasing their understanding of the cost of funerals. Funeral directors respond to this. The leaflet will be distributed through Local Authority Death Registration services, Citizens Advice Scotland and the Older People s Assembly. We will also make it available through mygov.scot at: We will aim to build on the content that is already there to communicate relevant messages in the future, as well as through frontline services who have contact with bereaved people immediately after a death, for example Death Registration Services. Scotland s Financial Health Service (SFHS) website has a section on Bereavement and Funeral Planning and we will consider adding further material. We will consider how the SFHS Blog feature which is linked to a twitter feed can be utilised. The When Someone Dies leaflet is used by most NHS Boards across Scotland and contains top line information on the things you need to know/consider when someone dies. We are seeking to remove barriers to the use of the When Someone Dies leaflet in the Health Boards which do not currently use it to ensure that a consistent message is available in all hospitals. The leaflet is currently under review and the revised version will include more on funeral poverty/costs of funerals and funeral choices. This material is also available on 12

13 the Grief and Bereavement section of the public facing NHS Inform website. 18 We recommend that encourage the setting up of a bereavement advice network and online information hub using existing services to enable members of the public to make informed choices, and support such work by commissioning training for advisors. Existing advice providers Better informed purchasers Ensuring best value Support to make informed choices Information about assistance The funds NHS Education for Scotland (NES) to develop an interdisciplinary approach to the development of training and education for staff, patients, families and carers. NES is currently developing a Grief and Bereavement website which can be accessed by healthcare, and other professionals. We will consider how this can be used to promote networking and sharing of practice between services. 19 We recommend that within NHSScotland timely advice and information about funeral choices for those who have experienced the death of someone close should be made available through the development of the bereavement coordinator role and the establishment of bereavement teams and offices, and that such developments should, in due NHSScotland NHS Staff Better informed purchasers Ensuring best value Support to make informed choices Information about assistance The government funds a partnership project (MATRICS) between Citizens Advice Scotland (CAS) and Money Advice Scotland (MAS). The aim of the project is to support an increase in the provision of high quality money advice in Scotland. They are currently developing their training courses and for advisors to incorporate funeral poverty and e-learning to cover such issues as bereavement and debt. The will explore the possibility of expanding the bereavement coordinator role. 13

14 course, be taken forward in conjunction with the integration agenda to include social care as well as healthcare. 20 We recommend that develop an Indication of Funeral Wishes document to sit alongside a person s Will and Power of Attorney as part of the suite of end of life planning tools promoted in publicity. General public Advisory services End of Life Care planning Statutory and third sector agencies Funeral Directors Better informed purchasers More likely deceased s wishes are met Empowering families to make choices We will develop a Funeral Wishes document and seek to work with partners and through the actions in response to other recommendations to ensure that it is readily available and used. 21 We recommend that the explore, with all stakeholders, how the idea of re-thinking the funeral can be further developed by looking at the possibility of separating disposal from remembrance and ritual. All stakeholders New approach to planning a funeral Possibility of savings We do not see this as a direct role for the, although we can consider it in the context of recommendation 2 above. We would encourage John Birrell, the Working Group on Funeral Poverty, CAS and others to take this forward. 22 We recommend that explore the market to determine if there would be interest in providing funeral cover as a loyalty reward scheme. All stakeholders New approach to planning a funeral Possibility of savings We will explore the appetite for this type of scheme with commercial organisations. 23 We recommend that consider the range of schemes for funeral provision in other countries, such as that described from S Africa and Sweden. Facilitates better strategic planning We will consider international comparisons in the development of the successor to the DWP funeral payment and future work on funeral poverty. 24 We recommend that All stakeholders Moves responsibility for the We will explore the viability and affordability 14

15 explore, with all stakeholders, the possibility of developing a Funeral Bond scheme as outlined in this section of the report payment of a funeral to the deceased rather than a charge on the family ensures that those on low income have access to a scheme which affords a respectful and dignified, although limited, funeral of a Funeral Bond or similar provision. Consistency across the country with respect to content will minimise any question of stigma attached to the SFBF. 25 We recommend that provide an opportunity for wide discussion of the content and recommendations of this report. All stakeholders Wide consideration of the issues Public debate of alternatives solutions. We will hold a series of round table discussions, led by the Cabinet Secretary for Social Justice, Communities and Pensioners Rights as well as a national conference to consider the recommendations of the report in more detail. This will allow for a broad discussion across the wide range of interests and aspects of funeral poverty, with a focus on action to achieve the greatest impact. 15