Funeral directors want higher grants for those least well off

The 2026 Funeral Industry Trends Report by the association stated the grant provides a “woeful” level of support for vulnerable New Zealanders. A survey among association members found the average price of an unattended cremation was $4700. A full cremation costs an average $11,700 and the average burial costs $14,300.

The Work and Income grant can be up to $2697.43. It was last reviewed in 2003, and is inflation-adjusted annually.

The report noted the disproportionate harm to vulnerable New Zealanders, particularly Māori and Pacific Peoples. 

A third of those claiming Work and Income funeral grants are Māori, even though they make up 18 per cent of the population, while 15 per cent of claimants are Pacific, who make up 9 per cent of the population.

Association president Bradley Shaw said 95 per cent of the funerals he handles in Whakatāne, an area with a high Māori population and lower socio-economic demographic, apply for the Work and Income grant. 

“It is becoming increasingly more difficult for families to pay funeral accounts,” he said. “It does make things difficult.”

Families without resources are having to enter into payment plans, sometimes for as little as $5 a week, and funeral homes are also having to call in debt collectors.

Mr Shaw would like to see the Work and Income grant move closer to the level of the ACC funeral grant of $7990.30 if someone dies through an accident. At a minimum, he thinks it should be around the $4500 level just to cover basic costs.

Graham Allpress, the Ministry of Social Development’s client service general manager, said the grant is not intended to cover the whole cost. Any change to maximum grant rates would be a decision for ministers.

Social Development Minister Louise Upston signalled no change is imminent.

“I appreciate it is a challenging time for anyone who has lost a loved one,” she said in a statement. “Funeral grants increase in line with the consumers price index every year and I have no current plans to change the policy settings.”

FULL STORY

Funeral grant offers ‘woeful’ level of support – report (By Tina Morrison/Newsroom)