Economic and Market Context

The economic environment in 2026 has remained uncertain. Inflation has eased considerably from the levels seen in 2022 and 2023, but the cost of living remains a concern for many households. Financial markets have continued to react to movements in interest rates, government bond yields, international trade policy and geopolitical events.

For both the Golden Leaves Trust and the BFD Pre-Paid Funeral Plan Trust Fund, the primary objective remains the prudent management of assets to meet long-term obligations to plan holders. Short-term market movements are therefore considered in the context of each Trust’s funding position, liabilities and investment horizon.

 

Funeral Cost Inflation

Funeral costs continue to rise over the long term. The SunLife Cost of Dying Report 2026, which reflects costs during 2025, introduced a revised methodology that distinguishes between a simple attended funeral and a traditional attended funeral. Its figures are therefore not directly comparable with those of earlier years.

The report gives the average cost of a simple attended funeral as £3,828. The average cost of a traditional attended funeral is £4,510, an increase of 5.3% on the previous year. Within the traditional category, the average cost of a burial is £5,440 and of a cremation £4,200. The average cost of a direct cremation is £1,628. Families also spend an average of £1,312 on the wider send-off, such as flowers, catering and venue hire.

These are national averages. The liabilities of each Trust are assessed on the estimated cost of providing the funerals covered by its plans, rather than on these figures.

 

Actuarial Solvency Assessments

Broadstone Regulatory & Risk Advisory Limited was jointly instructed by Golden Leaves Limited and the respective Trusts to carry out the annual solvency assessments of both Trusts as at 5 April 2026. Both reports were prepared by Erika Parker FIA FSA, Actuarial Director, and are dated 26 September 2026.

The assessments were carried out in line with section 3.2 of the FCA’s Funeral Plan Conduct of Business sourcebook, taking account of the relevant actuarial professional standards. Each compares the value of the benefits promised to plan holders with the assets held to meet them. Liabilities are calculated on a best-estimate basis, meaning the assumptions are intended to be neither deliberately optimistic nor deliberately pessimistic. Both reports were also reviewed by a senior Broadstone actuary not involved in Golden Leaves’ day-to-day actuarial work, and no unresolved issues remained.

Each Trust is legally separate and is assessed independently. Each is solvent in its own right.

 

Golden Leaves Trust

At 5 April 2026, the Trust held assets with a fair value of £153.2m against liabilities of £117.9m. This gives a surplus of £35.3m and a solvency level of 130%. At 31 March 2025, assets were £141.3m and liabilities £126.4m, giving a surplus of £14.9m and a solvency level of 112%.

Broadstone attributes the £20.4m increase in surplus mainly to the sale of new plans, favourable investment returns and methodology changes designed to better reflect projected cash flows.

Broadstone has also estimated that, reflecting market movements since the valuation date (principally gilt yields rising by more than inflation), the solvency level would have been about 134% at 26 September 2026. This is an estimate, not a formal valuation.

 

BFD Pre-Paid Funeral Plan Trust Fund

At 5 April 2026, the Trust held assets of £3.3m against liabilities of £2.1m. This gives a surplus of £1.2m and a solvency level of 159%. At 31 March 2025, assets were £2.6m and liabilities £2.3m, giving a surplus of £0.2m and a solvency level of 110%.

The Trust closed to new plans in 2022. Broadstone attributes the £1.0m increase in surplus mainly to a restatement of the Trust’s assets at 31 March 2025 and to favourable investment returns. Because of that restatement, and changes in how liabilities are presented, the 2025 and 2026 figures are not directly comparable.

Broadstone has estimated that market movements since the valuation date would have increased the solvency level to about 163% at 26 September 2026. Again, this is an estimate, not a formal valuation.

 

Investment Strategy

The investment strategy for both Trusts reflects the long-term nature of their liabilities. Its aim is not to respond to short-term market movements, but to balance capital preservation, liquidity and long-term return. Diversification across asset classes reduces reliance on any single market. Both actuarial reports identify favourable investment returns as one contributor to this year’s improved positions.

The Trustees will continue to review the strategy against each Trust’s liabilities, market conditions and the need to maintain appropriate security for plan holders.

 

Long-Term Protection for Plan Holders

The purpose of both Trusts is to ensure that sufficient assets are available to meet the future funeral obligations under the plans they support.

Funeral plans give customers certainty over the future cost of the funeral services their plan covers. They also ease the financial and practical burden on families at a difficult time. They are best understood as protection against future increases in the cost of those services, not as an investment product. The role of the Trusts is to support that commitment.

 

Economic Outlook

Uncertainty is likely to continue in the year ahead. Inflation, interest rates, bond yields, geopolitical developments and trade conditions can all affect financial markets and the future cost of funeral services. The Trustees therefore manage both Trusts on the basis that conditions will change. The test of resilience is not market performance in any single year, but whether each Trust holds sufficient assets to meet its long-term obligations across a range of conditions.

 

Conclusion

The financial positions of both Trusts strengthened during the year. On the actuary’s best-estimate basis, each holds assets comfortably in excess of its liabilities. The Trustees’ responsibilities extend over many years. We will continue to take a prudent and disciplined approach to investment and funding, with the protection of plan holders central to every decision.

 

Tom Kiedrowski

Chair

Golden Leaves Trust

October 2026