There are up to 1.08 million people in debt to loan sharks in England, according to figures from the Centre for Social Justice
Thousands of desperate families are borrowing money from illegal loan sharks to pay for funeral costs each week, campaign groups have warned.
There are up to 1.08 million people in debt to loan sharks in England, according to figures from the Centre for Social Justice.
Of this figure, it is estimated that around 32,400 people borrowed money to pay for funeral and health related costs. Worryingly, this rises to 43,200 (4%) in the first six months of 2025 alone.
Funeralexperts.com and Stop Loan Sharks are launching a new campaign to provide free support and information for people who don’t know where to turn when a loved one dies.
For example, there is the Funeral Expenses Payment from the Department for Work and Pensions. You may qualify for this if you claim certain benefits, including Universal Credit.
You must also be the partner of the deceased, the parent of a baby stillborn after 24 weeks of pregnancy, or the parent or person responsible for a deceased child who was under 16 (or under 20 and in approved education or training).
There are also charitable grants and services available locally. Stop Loan Sharks found that of the people who had borrowed from loan sharks, 91% did not have any savings to fall back on.
The 9% that did have savings had very low amounts. Half of all borrowers went without food or fuel to repay the lender.
Meanwhile, FuneralExperts.com found that some people were paying far more than they should be for funerals. In the worst cases, some were being billed up to £1,550 more than the cheapest provider.
Joanne Regan, Director of Operations of FuneralExperts.com, said: “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 organisations.
“This kind of support can make the difference between spiralling 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 official name for Stop Loan Sharks, said: “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 favour.”
- If you are in debt to loan sharks, contact Stop Loan Sharks on 0300 555 2222
