A NEW “Scottish funeral bond” and funeral benefit are to be introduced to help prevent the loss of a loved one being compounded by debt.

SNP Equalities Secretary Angela Constance set out in the measures in a 10-point plan aimed at tackling the growing problem of funeral poverty.

The cost of a basic funeral has almost doubled since 2004 to nearly £4000, with half of people dying without having made adequate provision for the cost.

The average debt taken on by loved ones for a service is now £1600.

The government’s response includes the piloting of a Scottish funeral bond, an “incentivised savings product” to help those in most need save for their own service.

As a result of Holyrood acquiring new welfare powers, the government will also introduce a new Funeral Expensive Assistance benefit by summer 2019.

This will replace the current Department of Work and Pensions funeral payment, which is worth around £1400 to people on benefits forced to meet another’s funeral costs.

Other steps include publishing guidance on funeral fees by December 2018, and strengthening consumer protection on funeral plans.

Last year the basic cost of a local authority cremation was £669 and a burial £1373, the latter up eight percent in 12 months, while funeral director fees were a further £2000.

It meant the cost of a basic funeral in Scotland averaged £3716.

However there were large differences around the country, with council charges in Edinburgh three times those in the Western Isles.

Councils also spent around £500,000 providing so-called “paupers’ funerals” last year for those who died alone or whose relatives were unable to pay, up 24 per cent in four years.

Ms Constance said there was a “growing problem” of people being pushed into poverty by funeral costs, a hardship that worsened the distress of those already grieving.

Launching the plan on a visit to Renfrewshire Wide Credit Union, which has developed a new funeral payment plan, she said: "The death of a loved one is an incredibly difficult time for anyone. It can be even harder when money is tight.

"We know funeral costs can push people into poverty - and often it is those already in financial hardship who face increased difficulties.

"That is why we are taking decisive action to tackle this growing issue and have engaged with local authorities, the funeral sector and other support services. I am pleased by the willingness to work together to find solutions that support more affordable funerals.

"The Scottish Government is committed to supporting those who need it most following a bereavement, which is why we will introduce Funeral Expense Assistance in summer 2019."

The Church of Scotland said it welcomed working with government to end funeral poverty.

Martin Johnstone, Secretary of the Kirk's Church and Society Council, said: “Over recent years we have consistently spoken out against the growing scandal of funeral poverty.

“Every week, ministers in all parts of Scotland spend time with families who are not only grieving the death of a person they love but are worried about how they pay funeral costs.

“It is unacceptable that families are being forced into debt by the rising cost of funerals - a cost for which many local authorities and funeral directors must take responsibility."

Mr Johnstone also called on the Scottish and UK governments to end the “postcode lottery” of burial and cremation charges, with costs set at a level that enables services to be provided “without crippling those experiencing poverty at a most difficult time in their life".

The Scottish government also published an advice leaflet, Planning Your Own Funeral, setting out how people can raise the subject of dying with their families and plan ahead.

It suggests broaching the subject “while watching the news, a soap opera or other TV programmes” featuring a funeral, and letting others know preferences for burial or cremation, type of service, invitations, readings and music.