Defunct funeral firm payments 'a slap in the face'

Tens of thousands of people who lost thousands of pounds after the collapse of pre-paid funeral firm Safe Hands Plans Limited are expressing strong dissatisfaction with the "meagre" compensation they are set to receive after a three-year wait. Approximately 46,000 individuals had invested in the company to cover future funeral expenses, but the company entered insolvency proceedings in 2022.

Safe Hands' insolvency administrators, FRP Advisory, have stated that plan holders could receive initial compensation by the end of June, with payouts ranging from 8.5 pence to 12.5 pence for every pound lost. However, victims feel that while getting some money back is better than nothing, such compensation is simply "a slap in the face."

One victim, named Denise Hudson, said she paid almost £2,500 for the plan in 2017 after seeing the company’s TV advertisement, at which time she thought her investment was "foolproof." Plan holders like her have collectively lost around £70.6 million. A major fraud investigation into Safe Hands and its parent company, SHP Capital Holdings Limited, was launched in October 2023. FRP Advisory stated in an update to creditors last October that there would be compensation. Subsequently, on January 3rd of this year, the administrators confirmed that plan holders would receive some compensation, adding that people would receive a higher payout than the typical 1p to 10p per pound lost in insolvency cases.

Ms. Hudson said, "We paid in full and we need full refunds. We trusted these people, and we’ve all been let down." She also stated that while trying to recover her money, she has also been dealing with the grief of losing her mother, Daisy, and her brother, Rupert, in 2024. She recalled how her mother's funeral plan was very well-organized and saved a lot of time, and she had thought the same would be the case for her, but it turned out not to be so. She accused the bosses of Safe Hands of doing a "vile, callous thing" and said it was "horrendous" that they had taken people's hard-earned savings. She feels extremely embarrassed that she gave her money away and lost it, and now all that is left is anger.

Since July 2022, pre-paid funeral service providers have needed approval from the Financial Conduct Authority (FCA) to operate. Safe Hands was one of dozens of companies that had been operating in the previously unregulated industry and collapsed four months before the regulatory measures took effect. Another couple, Sandy and David Beattie, paid £3,395 to Safe Hands in 2017 to cover the funeral costs of the first of them to pass away. Mrs. Beattie stated that when the company collapsed, they felt "furious, disappointed, disgusted." She said, "What we'll get back is a tiny fraction of what we put in, probably enough to buy a pizza and have a small party. For us, it's not about the money now, we just want someone to be held accountable." Mr. Beattie said, "There's nothing we can do about it. We want justice, but we’re not actually going to get our money back. People have been conned, and it’s heartbreaking." Another victim, Amy Gilly, paid £3,000 to Safe Hands in 2017. She said she bought the plan because she thought future funeral costs would increase. She stated, "I’m disappointed because now someone else will have to raise the funds and arrange my funeral because I’ll never buy a funeral plan again."

Another victim, Heather Moulder, and her partner each purchased Safe Hands plans in 2017, paying £3,500 each. Mrs. Moulder said, "For people living on pensions, this is a big loss. We’ve been told we might get a tenth of it back, which is better than nothing, but it’s not a lot. We are disappointed, but glad we found out about this before we died so we could make other arrangements." FRP told the BBC that the Safe Hands insolvency case was "complex" and required extensive legal action in the UK and overseas, including the Cayman Islands, to trace funds owed to creditors. They stated that £11.4 million has been recovered for plan holders to date and that they are focused on securing the best possible return for them. FRP said they are "working hard" to make initial distributions to plan holders by the end of the second quarter of 2025 and have already set aside at least £1.6 million for this purpose.

A spokesperson for FRP said: "While we understand that the current estimated return of 8.5p to 12.5p in the pound still represents a significant loss for plan holders, it is important to note that this is above the typical return in insolvency cases where unsecured creditors often receive between 1p and 10p in the pound." The administrators stated that they are continuing their work, while the Serious Fraud Office (SFO) is also conducting an investigation. The spokesperson added, "We fully understand and deeply sympathize with the distress that Safe Hands plan holders are experiencing. The loss of funeral plan savings has caused significant worry for many families, and we take our responsibility to recover funds for plan holders very seriously." The SFO confirmed that they are actively conducting a criminal investigation into suspected fraud at Safe Hands Plans Limited and its parent company, SHP Capital Holdings Limited. A spokesperson said, "We recognize that there is a strong public interest in this case and are committed to sharing more information as soon as we can." The BBC contacted former Safe Hands owners David Milson and Richard Philip Wells for comment, but they did not respond.