Pacific families turn to cremation as burial costs soar beyond NZ govt's funeral grants

For many Pacific families, burying a loved one is more than a tradition. It is a final act of love, faith and respect.

But soaring cemetery costs across Aotearoa New Zealand are forcing some families to make heartbreaking decisions, with many choosing cremation simply because they cannot afford a burial.

A new survey by the Funeral Directors Association of New Zealand (FDANZ) shows the average council burial fee for a burial plot and interment has climbed to $4359.

In Auckland, families can pay as much as $6770 for a plot at Manukau Memorial Gardens or Waikumete Cemetery.

The figures are well above the maximum Work and Income Funeral Grant of $2697.43, leaving many grieving families to cover a large gap.

According to the FDANZ survey, Pacific people account for 15 per cent of funeral grant applicants, despite making up only nine per cent of the national population.

Daniel Chrisp calls for support of New Zealanders who should not have to choose between a burial or a cremation based on finances. Photo/Unsplash

Atu Lagi, a Reverend, says the rising costs are forcing many Pacific people away from customs that have been passed down through generations.

“The reason why we bury people is because it aligns with our culture, traditions and it's a biblical perspective as well. As Pacific people we always love to visit the cemetery,” Lagi says.

“To have a physical presence, knowing that so-and-so is buried there or here. So we love to visit and spend time with our loved ones.

Reverend Atu Lagi says many Pacific people are opting for cremation out of financial survival. Photo/Unsplash

“We understand that, yes, they're gone, but it's the thought, connections and the reminiscing of the loved one that has passed away.”

Lagi says cremation remains difficult for many Pacific families to accept.

“We don't burn the person, because even the thought of burning a human being doesn't sit well with us,” he says.

He said the financial burden extends far beyond paying for a burial plot.

“The feed after, the mental capacity, the hosting. That’s a lot of pressure. Then some of our people, just to avoid going through all those nitty-gritty, they might as well just [create] which is sad in a way.”

Recent data reveals the average council burial fee for a plot and interment across New Zealand is $4359. Photo/iStock

Speaking with Khalia Strong on Pacific Mornings, Daniel Chrisp, Chair of the New Zealand Cemeteries and Crematoria Collective, said the current funeral grant no longer reflects the real cost of a burial.

“The FDANZ survey showed us that the average cost now is above $4000 for a burial plot throughout the country. The Work and Income Funeral Grant is still only $2600,” Chrisp says.

“So we want to be able to support our society, our residents, to have that free choice and we want the systems in place to be able to support that.”

FDANZ said the average cost of a burial service is now about $4359. Gillian Boyes, FDANZ chief executive, says rising council fees and an outdated funeral grant are leaving families with impossible choices.

Watch Daniel Chrisp’s full interview below.

Boyes said many funeral homes are also carrying council burial costs themselves because councils often require payment before families receive financial support.

In a statement to PMN News, the Ministry of Social Development (MSD), said the funeral grant is designed to help people who have no other way to meet funeral costs but it is not intended to pay for the full service.

Applicants’ before-tax annual income must sit below strict caps, ranging from $38,522.12 for a single adult to $55,954.08 for a partnered parent.

Money left by the deceased is deducted dollar-for-dollar, though applicants receive a $2351.46 personal asset exemption.

The FDANZ survey surmised that the average council burial fee for a plot and interment across New Zealand is $4359. Photo/Unsplash

Beyond plot fees, Lagi says a full burial service can often be daunting, from figuring out which funeral director would be best, to the plot selection and typically in Pacific communities, the food following the burial.

“Money has taken centre stage, and it is taking away the essence of who we are as Pacific people in how we care for one another.”

In a statement to PMN News, Graham Allpress, Group GM Client Service Deliver for the MSD, says the maximum payment is adjusted each year in line with inflation and currently stands at $2697.43.

“In general, the funeral grant does not need to be paid back. The maximum payment rate for the Funeral Grant is adjusted annually and linked to increases in the Consumer Price Index,” Allpress says.

“The maximum grant is $2697.43 (as at 1 April 2026). The Funeral Grant maximum grant rate was last reviewed in 2003.

“In 2025 (up to 31 October) 4,119 funeral grants were approved, with 2,937 of these receiving the full amount. Any change to maximum grant rates would be a decision for ministers.”

The Ministry of Social Development. Photo/PMN News/Candice Ama

Chrisp and Boyes are calling on the central government to increase the Work and Income Funeral Grant.

They say no family should have to choose between burial and cremation because they cannot afford to say goodbye in the way that reflects their culture and beliefs.