Funeral costs grow as councils raise cemetery fees

The Funeral Directors Association has published guidance to help people prepare for the cost of a funeral, burial, or cremation as most councils increase their cemetery fees.

The largest increase so far is in Wairoa, where the cost of a plot and burial is $2960 – up 48% from last year. The cost for a ash plot and interment has risen 42% to $630.

In Marlborough region, the total cost for burials and ash burials has risen 18% to $5572 and $1971, respectively.

Napier’s total ash burial cost has risen 22% to $895, while Tauranga’s total burial cost has risen 9% to $5450.

In Christchurch, both the total cost for burials and ash interments have risen 10% to $3356 and $849, respectively.

Funeral Directors Association chief executive Gillian Boyes is concerned about the impact these price hikes will have on families.

"When it does go up a lot, families are like, 'Oh gosh, what do I do?'"

Boyes said people should talk to funeral directors about their budget, and understand there’s no set cost for a funeral with a range of price options for items like caskets.

Pre-purchasing a plot, if possible, locks in the price at the time instead of a potentially higher cost at the time of someone’s death in future years.

She said another tip is setting money aside for the cost in advance. Funeral Directors Association members offer people the option of holding their money aside for future funerals.

Wairoa Mayor Craig Little said the cost increase has been a long time coming but is still under consultation with the community able to give their feedback before the prices are confirmed.

"It seems a big jump, but you know at the end of the day, if we're not recovering our costs and then everybody's paying for a cemetery that most of themselves or their whānau never use it's a bit unfair on the rest of the community, to be quite honest," he said.

He said some community members use urupa, a Māori burial site, instead of the council-managed cemetery.

Marlbrough’s made a similar move, with a spokesperson saying the council has switched from a 50:50 user to ratepayer cost to 70:30.

A Marlborough District Council spokesperson said the new pricing structure will be phased in over three years, with 56% of submitters on its Long Term Plan in support of the move.

"Marlborough's move towards more of a user pays model is in line with other councils around New Zealand and will reduce the burden on ratepayers at a time when significant rate increases are being felt nationwide," the spokesperson said.

"The ratepayer share of cemetery costs is an acknowledgement of the public benefit of cemetery services while acknowledging the main beneficiaries of these services are those who are interred and their families."

Christchurch City Council community parks manager Al Hardy said in a statement the increases are about aligning their prices with other councils.

"Another contributing factor to the increase has been the rising costs associated with the provision of burial plots and services, and only recovering a portion of these through our fees and charges," he said.

Fergus Wheeler is the founder of Death Without Debt, a non-profit organisation which guides people through the financial challenges around death.

He told 1News while council plots are becoming more expensive, it's "actually a bit of a diversion".

Wheeler said the more pressing issue which needs addressing to "protect people while they're at their absolutely most vulnerable" is the "excessive" charges for cremation and burial paperwork.

"At the moment, most New Zealanders are unaware that they can actually do a burial themselves and particularly, they can do paperwork for themselves very simply, just by contacting the local council," Wheeler explained.

"New Zealanders are being charged, often, $3000-5000 for the paperwork fees for cremation or burial but are unaware that it's probably only taking the funeral directors a few minutes."

He said for cremations, change would be needed at the legislative level to "make it possible for New Zealanders to bypass the funeral directors".

"If we want to save money, the low-hanging fruit is with the paperwork and a law change."

Boyes is calling on the Government to increase the Work and Income Funeral Grant on offer for low-income families. The maximum grant paid out is $2559.20, as the fund is means tested.

"It seems very disproportionate that if you die in poverty, two and a half thousand [dollars]. If we could get even halfway towards the ACC grant we'd be absolutely thrilled and it would help out so many families.”

The ACC funeral grant paid out is a maximum of $7793.13.

In a statement, Social Development and Employment Minister Louise Upston said the Work and Income Funeral Grant is adjusted each year in line with inflation.

"While changes beyond this are not on the coalition Government’s current work programme, it may be possible when economic conditions allow," she said.

The minister said the payment is not intended to cover the whole cost of a funeral or tangi, but is a contribution to help those with no other means of meeting the expenses.

"The Government has chosen to prioritise spending taxpayer dollars on easing the cost of living and investing in essential frontline services like healthcare, schools, and disability services."

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