Undertakers hit by the credit crunch are refusing to carry out funerals until the Department for Work and Pensions has confirmed it will pay out for families on benefits.
Bereaved relatives can apply to the DWP for help with funeral costs if they can prove they are receiving benefits and cannot afford to pay.
Some 27,000 people receive cash from the Social Fund every year, totalling £46m.
Typically each gets up to £700 towards the coffin and collection of the deceased, plus another £1,000 for other expenses such as cremation fees.