Escalating Debt Crisis Hits Bereaved Households
Desperate families across England are increasingly turning to illegal loan sharks to cover funeral costs, with campaign organizations highlighting a sharp rise in such vulnerabilities. Recent data from the Centre for Social Justice reveals that up to 1.08 million individuals in England owe money to these predatory lenders. Among them, approximately 32,400 people sought loans specifically for funeral and health-related expenses, a number that climbed to 43,200—representing 4% of total cases—in the first half of 2025 alone.
New Campaign Offers Free Bereavement Support
In response to this growing issue, FuneralExperts.com and Stop Loan Sharks have joined forces to launch a campaign providing free guidance and resources for those navigating the loss of a loved one. The initiative aims to connect families with essential financial aid options, such as the Funeral Expenses Payment administered by the Department for Work and Pensions. Eligibility for this support typically applies to recipients of benefits like Universal Credit.
To qualify, individuals must generally be the partner of the deceased, the parent of a stillborn baby after 24 weeks of pregnancy, or the responsible party for a child under 16—or under 20 if engaged in approved education or training. Additional assistance is available through local charitable grants and community services, helping to alleviate immediate financial pressures during grief.
Devastating Impacts on Borrowers
Analysis from Stop Loan Sharks indicates that 91% of those who borrowed from illegal lenders had no savings to rely on, while the remaining 9% held only minimal amounts. Shockingly, half of all borrowers skipped meals or heating to meet repayment demands, underscoring the severe toll on basic needs.
Further research by FuneralExperts.com shows that many families overpay for services, with some facing bills up to £1,550 higher than the most affordable options available.
Expert Calls for Compassionate Alternatives
Joanne Regan, Director of Operations at FuneralExperts.com, emphasized the emotional and financial strain involved: “Every day we hear from people who feel trapped, facing funeral costs they cannot afford, with nowhere to turn. In that moment of grief, many are pushed towards illegal loan sharks or overcharged by providers who should know better. At Funeral Experts, we sit alongside families, not only helping them find the right funeral director but also guiding them through benefits, council tax changes, grant applications, and even practical tasks like notifying organizations. This kind of support can make the difference between spiraling into debt and finding a way forward. Bereavement is hard enough without the added fear of financial hardship. Our message to families is clear: you are not alone, and there is free, compassionate help out there.”
Dave Benbow, head of the England Illegal Money Lending Team (IMLT)—the organization behind Stop Loan Sharks—warned of the risks: “Funerals can be costly, and when someone passes away suddenly or unexpectedly, it’s often an expense that hasn’t been planned for. This can leave families needing to find money quickly, at a time when they are grieving and emotionally overwhelmed. That’s the last thing they should have to deal with. Unfortunately, illegal lenders often take advantage of people when they are at their most vulnerable. Situations like this can be seen as an opportunity for them to exploit those in distress. There is help available to cover funeral costs, but in the midst of such a painful time, families may struggle to manage both their grief and their finances. We strongly urge people not to borrow from illegal lenders, even if they seem like a friend offering a favor.”
Those already in debt to loan sharks can seek confidential help by contacting Stop Loan Sharks at 0300 555 2222.
