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The government has turned a deaf ear to a call to increase the Work and Income (WINZ) Funeral Grant so that eligible low income families are able to farewell loved ones with dignity and respect.
Funeral Directors Association chief executive Gillian Boyes says it is extremely disappointing that the government isn’t prepared to increase the grant.
She says the current maximum of $2280.72 is woefully inadequate. This amount covers just 37 per cent of the cost of a simple funeral cremation and only 29 per cent of a funeral and burial, well short of the essential funeral costs that the grant was designed to cover.
“Everybody’s talking about the cost of living, but what about the cost of dying,” Boyes says.
“Apart from CPI adjustments, the Funeral Grant was last increased nearly 20 years ago so changes are long overdue. With the average cost of a burial plot alone being $4000 it’s clear that the grant is removing all choice for low income families to farewell their loved ones in a meaningful way.”
Boyes says about 5000 families a year access the grant.
“Families are being driven to make difficult decisions. Our members often see families choose a cremation when a burial might be more appropriate for cultural or religious reasons.
“We also know some families can only afford to choose direct cremation options with no funeral at all.
It’s frankly outrageous that these families have to make this choice when they are meant to have access to something called a ‘funeral’ grant.”
Boyes says it is particularly hard on families when it is the main breadwinner who has passed away.
“Debt agencies tell us that a big income shock such as a funeral can tip these families over the edge.”
The Funeral Directors Association proposed increasing the maximum amount payable under the grant to be more in line with the ACC Funeral Grant, which has risen to just over $7000.
Boyes says that given this is an asset and income-tested grant, the estimated fiscal impact would be limited to around an additional $14 million based on the numbers of claimants who meet the current eligibility criteria.
She says that the Association also wants the Ministry of Social Development to provide clear guidance on what is classed as essential under the grant to ensure consistency and equity of access to the full entitlement for those who are eligible for this grant.
“Looking ahead to other ways this support could be improved, we would love to see a simpler process for applying so that vulnerable New Zealanders at what may an extremely difficult time do not face unnecessary barriers to accessing this grant if they are eligible,” says Ms Boyes.
Currently, claimants must complete a 12-page form setting out huge detail of their incomes and assets, with supporting documentation.
The association is also calling for the Ministry for Social Development to commit to reviewing the allowable income and assets of claimants before next year’s Budget, to ensure the asset tests are reasonable, especially in the context of the cost of living outstripping increases in wages and benefits over time.
Ms Boyes says that the association is advocating for these changes because its members are on the front-line and too often see the devastating impact on vulnerable families if they are not able to farewell their loved ones with appropriate dignity and respect.
