Thousands of vulnerable families across England are being driven to borrow money from illegal loan sharks each week to cover the soaring costs of funerals, according to stark warnings from campaign groups and financial experts.
Alarming Scale of Illegal Lending Debt
New figures released by the Centre for Social Justice paint a disturbing picture of the illegal lending crisis gripping the nation. The research indicates that up to 1.08 million people in England are currently in debt to loan sharks, highlighting a widespread problem of financial desperation.
Funeral Costs Driving Borrowers to Dangerous Lenders
Within this troubling statistic, experts estimate that approximately 32,400 individuals have specifically borrowed money to pay for funeral and health-related expenses. Even more concerning is the rapid escalation of this trend, with the number rising to 43,200 people (representing 4% of all loan shark borrowers) in just the first six months of 2025 alone.
The financial vulnerability of these borrowers is particularly stark. Research conducted by Stop Loan Sharks reveals that 91% of people who had borrowed from illegal lenders had no savings whatsoever to fall back on during their time of need. Of the remaining 9% who did have some savings, the amounts were described as "very low" and insufficient to cover unexpected expenses like funeral costs.
Devastating Consequences for Borrowers
The human cost of this borrowing is severe and immediate. Half of all borrowers reported going without essential food or fuel in order to meet repayment demands from illegal lenders, creating a dangerous cycle of deprivation and financial pressure.
Compounding the problem, research from FuneralExperts.com has uncovered that many grieving families are being significantly overcharged for funeral services. In the most extreme cases, some families were billed up to £1,550 more than the cheapest available provider, exploiting their vulnerability during a period of bereavement.
New Campaign Offers Hope and Support
In response to this growing crisis, FuneralExperts.com and Stop Loan Sharks are jointly launching a comprehensive new campaign designed to provide free support and crucial information for families who don't know where to turn following the death of a loved one.
Available Financial Support Options
The campaign highlights several legitimate sources of financial assistance that many families may not be aware of:
- The Funeral Expenses Payment from the Department for Work and Pensions, available to those claiming certain benefits including Universal Credit
- Various charitable grants and local services specifically designed to help with funeral costs
Eligibility for the Funeral Expenses Payment extends to:
- The partner of the deceased
- The parent of a baby stillborn after 24 weeks of pregnancy
- The parent or person responsible for a deceased child under 16 (or under 20 if in approved education or training)
Expert Voices on the Crisis
Joanne Regan, Director of Operations at FuneralExperts.com, expressed deep concern about the situation: "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."
Regan emphasized their comprehensive support approach: "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."
Dave Benbow, head of the England Illegal Money Lending Team (the official name for Stop Loan Sharks), highlighted how illegal lenders exploit vulnerability: "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."
Benbow issued a strong warning: "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. We strongly urge people not to borrow from illegal lenders, even if they seem like a friend offering a favour."
Seeking Help and Support
For those currently in debt to loan sharks, immediate help is available through Stop Loan Sharks on 0300 555 2222. The campaign's central message to struggling families is clear: you are not alone, and free, compassionate help is available to navigate both the emotional and financial challenges of bereavement without resorting to dangerous illegal lenders.
