Defunct funeral firm’s payout ‘a slap in the face’

People who lost thousands of pounds after the collapse of a pre-paid funeral firm have been left frustrated by the “small” sums they have to repay after a three-year wait.

About 46,000 people had invested in a fund with Safe Hands Plans Ltd to cover the future costs of their funerals before the company took over. fell into administration In 2022.

Safe Hands’ administrators, FRP Advisory, have said that schemeholders could receive an early repayment by the end of June – between 8.5p and 12.5p for each pound lost.

Dennis Hudson, who spent almost £2,500, said: “Getting some money back is better than getting nothing – but it’s a slap in the face.”

The 58-year-old woman from Derby paid for the Safe Hands scheme in 2017 after seeing a company advert on television and said she felt her investment was “foolproof”.

He is among the planholders who are A total of estimated £70.6m is outstanding,

A major fraud investigation In the deal Safe Hands, and its parent company, SHP Capital Holdings Limited, was launched in October 2023.

In October last year, in an update to creditors, FRP Advisory said there would be repayments.

Then, on January 3, administrators confirmed that scheme holders would get some money back – adding that what people would get back was more than the rate of 1p to 10p for every pound lost in general administration matters.

But Ms Hudson said: “We have paid in full. We want the full amount back.”

“We trusted people and we have all been let down.

“Everyone will still lose a lot.”

Ms Hudson said she had to deal with the deaths of her mother Daisy and brother Rupert in 2024 as she tried to get her money back.

“(Mum) had planned the funeral brilliantly and it saved us a lot of time, everything was organised,” he said.

“I thought that would happen to me.

“No one would have been bothered, everything would have been sorted out – but it wasn’t.”

He accused the owners of Safe Hands of running a “secret, cruel operation”.

“It’s appalling that they can take people’s hard-earned money,” he said.

“I thought I did everything right. I did my homework.

“I felt embarrassed more than anything else – that I handed over my money and lost it. Now all I’m left with is anger.”

From July 2022, pre-paid funeral providers will need approval to operate from the Financial Conduct Authority (FCA).

Safe Hands was one of dozens of companies previously operating in the unregulated sector, and collapsed just four months before the measures were introduced.

In 2017, Sandy and David Beattie, from Bingham, Nottinghamshire, paid £3,395 to Safe Hands to cover the funeral costs of their first person who died.

Mrs Beattie, 73, said she felt “anger, despair, sadness” when the company collapsed.

“What we get back is a very small amount compared to what we put in,” he said.

“When we get it, it might be enough to buy pizza, and we’ll have a little party.

“For us, it’s not about money anymore. We just want someone to be held accountable.

“Our money went somewhere.”

Mr Beattie, 80, said: “There’s nothing we can do about it. We want justice but realistically we won’t get our money back.”

“People have been taken for a ride and it stings.”

Amy Geary, 50, from Anstey, Leicestershire, paid £3,000 to Safe Hands in 2017.

The NHS worker said he made the plan because he thought the cost of funerals would increase in the future.

“I felt very happy,” Ms Geary said. “Other people thought I was petty (planning my funeral).

“They thought I was crazy. I’m very organized, and I didn’t want someone else doing a job when I wasn’t here.

“It’s sad that you’re trying to plan something and it’s taken away from you.”

They were told that, in 2022, they would likely get £1 out of every £100 back.

“I’m disappointed,” she said. “Someone else will have to find the money and make my funeral arrangements when I’m not here because I’ll never buy another (funeral plan).”

Heather Mould, 77, and her partner Mike took out the Safe Hands scheme in 2017 – paying £3,500 each.

Mrs Mould, from Allington, Lincolnshire, said: “It was quite a loss when you’re on a pension.

“We were told we could get 10p back in the pound. It’s something, but it’s not much.

“I felt disappointed but we were happy to know that we could make some more arrangements before either of us died.”

FRP told the BBC that the Safe Hands administration case was “complex” and required extensive legal action both in the UK and abroad – including the Cayman Islands – to trace the money owed to creditors.

It says it has recovered £11.4m for scheme holders so far and is focused on getting the best returns for them.

FRP said it was “working towards” making initial distributions to schemeholders before the end of the second financial quarter in June 2025, and had paid out a minimum of £1.6m by that end.

“While we understand that the current estimated return of 8.5p to 12.5p in the pound still represents a significant loss for schemeholders, it is important to note that this is higher than the typical return in administration cases, where unsecured creditors “usually fetches between 1p and 10p to the pound,” a spokesman said.

The administrator said its continued efforts were running in parallel to the ongoing Serious Fraud Office (SFO) investigation.

The spokesperson said: “We fully understand the distress faced by Safe Hands scheme holders and have our deepest sympathies.

“The loss of funeral plan savings has caused significant concern for many families, and we take our responsibility to recover funds for planholders extremely seriously.”

The SFO confirmed that it is pursuing an active criminal investigation into alleged fraud by Safe Hands Plans Limited and its parent company SHP Capital Holdings Limited.

A spokesperson said: “We recognize that there is significant public interest in this case and are committed to sharing further information as soon as possible.”

Both former owners of Safe Hands – David Milson and Richard Philip Wells – were contacted by the BBC for comment, but did not respond.