Following comprehensive consultation and stakeholder engagement, in January 2021 secondary legislation was made to bring pre-paid funeral plan firms within the remit of the Financial Conduct Authority (FCA). This change will protect consumers by ensuring that, for the first time, all firms that sell and administer pre-paid funeral plans are subject to compulsory and robust regulation.

The new regulatory framework will come fully into force in July 2022, following an 18-month transition period. The FCA’s consultation on rules for the sector closed on 13 April 2021, and the Government will continue to work closely with the FCA to ensure that the implementation of the new regulatory framework goes well.

The legislation allows intermediaries such as funeral directors to become “appointed representatives” of the funeral plan providers whose plans they sell or intermediate. The provider, known as the “principal” firm, would be responsible for ensuring their appointed representatives comply with the relevant rules for selling plans. This results in a proportionate approach, whereby smaller firms that operate as intermediaries will be required to follow the rules that protect consumers, without necessarily needing to undergo full FCA authorisation. To support these small firms during the transition period the FCA will reach out to the industry to explain their regulatory standards and expectations regarding the authorisation gateway.

The FCA is examining feedback concerning competition and smaller plan providers, among other things, as part of its consideration of responses to its consultation. The FCA will consider this feedback in the context of its operational objectives - which include ensuring an appropriate degree of protection for consumers and promoting effective competition in consumers’ interests - as part of its decisions on the regime.

The FCA’s consultation proposed that funeral plans should be brought within the scope of the Financial Services Compensation Scheme. The Government is currently considering whether further legislation is required to ensure the Compensation Scheme would operate effectively for consumers, if it covered this sector.

Following comprehensive consultation and stakeholder engagement, in January 2021 secondary legislation was made to bring pre-paid funeral plan firms within the remit of the Financial Conduct Authority (FCA). This change will protect consumers by ensuring that, for the first time, all firms that sell and administer pre-paid funeral plans are subject to compulsory and robust regulation.

The new regulatory framework will come fully into force in July 2022, following an 18-month transition period. The FCA’s consultation on rules for the sector closed on 13 April 2021, and the Government will continue to work closely with the FCA to ensure that the implementation of the new regulatory framework goes well.

The legislation allows intermediaries such as funeral directors to become “appointed representatives” of the funeral plan providers whose plans they sell or intermediate. The provider, known as the “principal” firm, would be responsible for ensuring their appointed representatives comply with the relevant rules for selling plans. This results in a proportionate approach, whereby smaller firms that operate as intermediaries will be required to follow the rules that protect consumers, without necessarily needing to undergo full FCA authorisation. To support these small firms during the transition period the FCA will reach out to the industry to explain their regulatory standards and expectations regarding the authorisation gateway.

The FCA is examining feedback concerning competition and smaller plan providers, among other things, as part of its consideration of responses to its consultation. The FCA will consider this feedback in the context of its operational objectives - which include ensuring an appropriate degree of protection for consumers and promoting effective competition in consumers’ interests - as part of its decisions on the regime.

The FCA’s consultation proposed that funeral plans should be brought within the scope of the Financial Services Compensation Scheme. The Government is currently considering whether further legislation is required to ensure the Compensation Scheme would operate effectively for consumers, if it covered this sector.

Following comprehensive consultation and stakeholder engagement, in January 2021 secondary legislation was made to bring pre-paid funeral plan firms within the remit of the Financial Conduct Authority (FCA). This change will protect consumers by ensuring that, for the first time, all firms that sell and administer pre-paid funeral plans are subject to compulsory and robust regulation.

The new regulatory framework will come fully into force in July 2022, following an 18-month transition period. The FCA’s consultation on rules for the sector closed on 13 April 2021, and the Government will continue to work closely with the FCA to ensure that the implementation of the new regulatory framework goes well.

The legislation allows intermediaries such as funeral directors to become “appointed representatives” of the funeral plan providers whose plans they sell or intermediate. The provider, known as the “principal” firm, would be responsible for ensuring their appointed representatives comply with the relevant rules for selling plans. This results in a proportionate approach, whereby smaller firms that operate as intermediaries will be required to follow the rules that protect consumers, without necessarily needing to undergo full FCA authorisation. To support these small firms during the transition period the FCA will reach out to the industry to explain their regulatory standards and expectations regarding the authorisation gateway.

The FCA is examining feedback concerning competition and smaller plan providers, among other things, as part of its consideration of responses to its consultation. The FCA will consider this feedback in the context of its operational objectives - which include ensuring an appropriate degree of protection for consumers and promoting effective competition in consumers’ interests - as part of its decisions on the regime.

The FCA’s consultation proposed that funeral plans should be brought within the scope of the Financial Services Compensation Scheme. The Government is currently considering whether further legislation is required to ensure the Compensation Scheme would operate effectively for consumers, if it covered this sector.

Through a cross-departmental Death Management Programme, the Government continues to provide strategic and operational support to those looking after the deceased and supporting the bereaved. This programme is currently led by the Cabinet Office working closely with the funeral and death management sector, local responders and government departments to ensure the deceased are treated with dignity and respect.

The Government is considering, as part of its response to the Competition and Markets Authority’s (CMA) ‘Funeral Markets Investigation’ into the operation of the funeral sector, the requirement for such structures once the immediate pressures from the pandemic have eased. The Government response to the CMA is being led by the Ministry of Justice.

The Government’s guidance for those managing funerals is available through the Deceased Management Advisory Group website. This guidance details the actions funeral directors and others managing funerals should take to ensure funerals take place in a COVID-19 safe and secure way. This includes ensuring a COVID-19 risk assessment is in place and that all reasonable steps are taken to limit the risk of transmission, taking into account the risk assessment and relevant legislation including around attendance.

Ahead of Step 4 of the ‘COVID-19 Response - Spring 2021’ roadmap (no earlier than 21 June), the Government will launch the Events Research Programme, to consider how and when restrictions can be lifted from large events including funerals and wakes. Subject to the outcomes of the review at each stage, the forward plan will be included in the Roadmap for when limits on funeral attendance might be lifted and the relevant guidance will be updated accordingly.

The ‘COVID-19 Response - Spring 2021’ provides a roadmap out of the current lockdown in England. The design of the roadmap has been informed by the latest scientific evidence and seeks a balance between our key social and economic priorities, whilst preserving the health and safety of the country. The scientific evidence shows that opening too early or too quickly risks a further lockdown. The approach focuses on data, not dates. Each step has a “no earlier than” date, five weeks later than the previous step, to allow time to assess the impact of the previous step and provide a week’s notice before changes occur.

Funerals can continue to take place with up to 30 mourners in attendance. Anyone working is not included. People should socially distance themselves from others outside their household or support bubble (if eligible). Religious, belief-based or commemorative events linked to a person’s death, such as stone setting ceremonies, the scattering of ashes or a wake, can also continue with up to 6 people in attendance.

At Step 2 (no earlier than 12 April), wakes will be permitted for up to 15 people.

From Step 3 (no earlier than 17 May), 30 people can attend a wake in line with all life events at this stage.

Ahead of Step 4 (no earlier than 21 June), the Government will launch the Events Research Programme, to consider how and when restrictions can be lifted from large events including funerals and wakes. Subject to the outcomes of the review, we hope to be able to lift restrictions.

Funeral staff are eligible for prioritisation if they carry out functions requiring contact with multiple vulnerable patients in a healthcare setting and are at a high risk of exposure to COVID-19. Such funeral operatives were being offered vaccinations by 15 February.

The COVID-19 Response – Spring 2021 published on 22 February provides a roadmap, with four steps, to ease out of the current lockdown in England. Rules around funerals will not change; these can proceed with 30 attendees during the first three steps, with the aim to remove all restrictions by step four. The roadmap is available at the following link:

https://www.gov.uk/government/publications/covid-19-response-spring-2021

It is the responsibility of the funeral director or venue owner to take all reasonable steps to ensure a funeral is Covid secure, and takes place in a way that complies with all relevant legislation, including around attendance.

A funeral director or venue owner can seek support from the police if they reasonably believe that the numbers attending are likely to breach the legal limits despite their best efforts to prevent this, or the numbers in attendance have unexpectedly exceeded the legal limits. The police can then decide the most appropriate action to take, which may include issuing a fixed penalty notice.

Apprenticeships are jobs with high-quality training, created by employers, and we encourage businesses in all sectors, including the funeral and death care sector, to use apprenticeships to recruit the right people and develop the skills they need.

There are two high-quality, employer-designed, apprenticeship standards in the funeral and death care sector available for employers to use; the level 3 funeral director standard and the level 2 funeral team member standard. In 2019-20 academic year, there were 50 starts on the funeral director standard and 140 starts on the funeral team member standard. A level 3 mortuary technician standard and a level 5 embalmer standard are currently in development.

To help employers in all sectors offer new apprenticeships, they are now able to claim £2,000 for every new apprentice they hire under the age of 25, and £1,500 for new apprentices aged 25 and over. These incentive payments were announced as part of the government’s Plan for Jobs in July 2020 and the extension of the scheme (to the end of March 2021) was announced in the November Spending Review.

We are committed to supporting employers of all sizes to offer apprenticeships. In the 2021-22 financial year, we are making available £2.5 billion to support apprenticeships in all employers, irrespective of their size.

We continue to work with smaller employers to give them the confidence and support to take on new apprentices. We are reforming the system so that unspent levy funds can be used more easily not just in big companies, but in the small and medium enterprises too.

The temporary zero rate was an extraordinary measure introduced to help affected sectors (such as hospitals and care homes) during the initial acute period of the COVID-19 crisis, when global supply of PPE did not meet demand and PPE was procured directly from the open market.

The funeral sector source their own PPE through their normal supply routes. In extreme circumstances, there is provision for them to approach their Local Resilience Forum (LRF) or local authority, where the LRF has stood down, to discuss access to an emergency supply. Given this, there are no plans to review the VAT treatment of PPE.

The pan-UK and cross-departmental C19 Death Management programme provides strategic and operational support to those looking after the deceased and supporting the bereaved. This programme is led by the Cabinet Office working closely with the relevant sector, local responders and government departments to ensure the deceased are treated with dignity and respect.

The Government is considering, as part of its response to the Competition and Markets Authority’s ‘Funeral Markets Investigation’ into the operation of the funeral sector, the enduring requirement for such structures once the immediate pressures from the pandemic have eased. The Government response is being led by the Ministry of Justice.

I thank my right hon. Friend for his question and for the work that he has done on this issue with the hon. Member for Swansea East. It is accepted across the House that it is not right that grieving parents have to worry about how to meet the funeral costs when they have lost a child. As he knows, we have confirmed that parents will no longer have to meet the cost of burials or cremations. Fees will be waived by local authorities and paid for by the Government. The relevant Ministries have been working on the most effective way to deliver this, and I can confirm that the fund will be implemented by the summer.