Safe Hands Plans’ collapse: what are your rights with pre-paid funerals plans?

People who lost thousands of pounds after the collapse of the pre-paid funeral company Safe Hands Plans Ltd have been left disappointed by the ‘tiny’ sums they’re being repaid.  

What happened with Safe Hands plans?  

Safe Hands Plans Ltd, along with many other funeral plan companies, was part of an unregulated industry until rules were introduced in July 2022. Unfortunately, the firm went into administration just before the new measures came into force. 

Around 46,000 people had invested in the company to cover their funeral costs. The company’s administrator, FRP Advisory, announced that plan holders could receive initial repayments of between 8.5p and 12.5p for every pound they lost, by the end of June.   

The BBC reports how a couple from Nottinghamshire who paid £3,375 in 2017 for a funeral plan said they felt "angry, disappointed, sick" when the firm collapsed. 

"Compared to what we put in, what we'll get back is a tiny amount," they said. 

Another customer, who paid £3,000, was told in 2022 she could expect to get back just £1 for every £100 she invested.  

She told the BBC: "It's sad that you try to plan something and it has been taken away from you.”  

Your rights under new FCA rules  

Since July 2022, pre-paid funeral plans have been regulated by the Financial Conduct Authority (FCA), offering you more protection.  

How the new rules protect you:  

• Your money is managed responsibly: all funeral plan providers must meet strict requirements to ensure your money is managed responsibly and used correctly. 

• Right to complain: if you’re unhappy with your provider, you can file a complaint with the Financial Ombudsman Service (FOS). This service is free and easy to use. Even if your issue happened before July 2022, you can still contact the FOS for advice.  

• Financial safety net: if your provider collapses, you may be able to claim compensation through the Financial Services Compensation Scheme (FSCS).  

• Guaranteed services: the FCA now requires all providers to guarantee the funeral service you paid for, so you’ll get what you’ve been promised. 

How to check if your pre-paid funeral plan is FCA-regulated  

It’s easy to check if your provider is FCA-authorised. Simply visit the FCA website to make sure your funeral plan provider is listed. 

What if your provider goes bust? 

If your provider collapses, your plan will be transferred to another one. They may offer a replacement plan, possibly at a higher cost or with different terms. You can reject the new plan and request a refund, though it’s likely to be less than what you originally paid.