An outcry for an investigation has arisen after a funeral plan firm collapsed, leaving families in distress with debts amounting to £70 million. The collapse of Safe Hands Plans Ltd in 2022 left around 46,000 individuals empty-handed, without the financial security typically provided by a funeral plan. Despite the significant impact on these families, no legal action has been taken against the company’s executives or owners so far.
The Serious Fraud Office (SFO) initiated an investigation into the firm in October 2023. However, the affected parties are concerned about the slow progress in holding the responsible individuals accountable. The collapse of Safe Hands, along with another firm named One Life, prompted Fairer Finance, a consumer group, to urge the government to conduct a public inquiry into the funeral plan sector.
Fairer Finance’s managing director, James Daley, emphasised the importance of identifying the legislative and regulatory failures that contributed to the financial losses experienced by funeral plan holders. The victims, like Margaret and David Fee from Ratby, Leicestershire, expressed their anguish over losing substantial amounts they had invested in pre-paid funeral plans from their pension pot. Margaret described the financial burden created by the worthless plan as devastating and stressed the need for those responsible to be held accountable.
Similarly, retired grandmother Gill Marshall shared her disappointment after investing £4,000 in a Safe Hands funeral plan, only to find herself without the promised coverage or a refund. The Financial Conduct Authority acknowledged its limited authority to oversee funeral firms at the time of Safe Hands’ collapse. The Treasury highlighted steps taken to prevent such occurrences, including making it illegal to sell pre-paid funeral plans without authorisation from the Financial Conduct Authority.
As the Serious Fraud Office continues its criminal investigation into Safe Hands, the impacted families are still waiting for justice and financial restitution. The collapse of Safe Hands has exposed vulnerabilities in the funeral plan sector, prompting calls for a comprehensive review of regulations and practices to safeguard consumers in the future.