A FORMER caretaker from Nantyglo is among the 46,000 customers who lost a combined total of around £60m after a funeral plans company went into administration.
Gary Godwin and his wife Glenys lost £6,000 that they had invested after Safe Hands funeral plans went into administration in March 2022.
The company went into administration after withdrawing its application to the Financial Conduct Authority (FCA) for authorisation as a funeral plan provider.
Mr Godwin explained how they had put in a £500 deposit, and then paid £300 monthly each until they had a total of £6,000 put aside but have now lost all of that money.
He said: “We did that so no one would have to worry about costs for a funeral and the services if anything happened to us. This was supposed to take care of everything, now we don’t know how our families will pay.
“I have no idea if we will get anything back. It makes me very angry to think about as it’s always there at the back of our minds.”
Blaenau Gwent MP Nick Smith has called for action in Parliament to help people like Mr Godwin, vulnerable pensioners who may not have money to fall back on.
Mr Smith has most recently raised the issue with the Leader of the House in Parliament, calling for a government statement, and wrote to the FCA with a Freedom of Information request regarding any correspondence about Safe Hands that took place between the FCA and the Treasury, and the FCA and Safe Hands, between 2015 and 2022.
An FCA spokesperson said: “We understand the frustrations felt by those who lost out on Safe Hands funeral plans while seeking peace of mind for their loved ones.
“Administrators are investigating the failure of the company and they have written to all those affected to explain the different options available to them, including discounted plans available through Dignity and Co-Op.”
The administrators, Nedim Ailyan and Ben Stanyon of FRP, released a progress report on May 4, which confirmed the administration and investigative process is still ongoing.
Their website said customers will receive a refund but it wouldn't be the full amount due to "lack of funds within the Safe Plans Trust".
Mr Smith said: “It appears those with oversight may have acted too slowly, failing vulnerable people who were saving for their own funeral to avoid placing a financial strain on family members.
“Now, tens of thousands of people like my constituent Mr Godwin are all out of pocket with no real sense of when, or even if, they will receive compensation.”
“It has been reported that Safe Hands plan holders may receive at most a fifth of their money back, this is simply not right.
“If found to be due, those who lost out must be adequately compensated for the failures of the UK’s regulators or the failures of the Treasury.”
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