Two individuals have been formally charged in connection with the collapse of Safe Hands Plans Ltd, a pre-paid funeral firm that left tens of thousands of customers financially vulnerable.
The collapse of Safe Hands Plans Ltd in 2022 resulted in approximately 46,000 customers losing significant sums of money after the company entered administration.
The Serious Fraud Office (SFO) has announced charges against Richard Wells and Neil Debenham, alleging conspiracy to defraud. According to the SFO, Wells previously served as a director of SHP Capital Holdings Ltd, the parent company of Safe Hands, while Debenham held a “fellow senior executive” position.
Wells and Debenham are scheduled to appear before Westminster Magistrates’ Court on February 5.
The SFO has characterized the charges against Wells, 39, a resident of Spain, and Debenham, 43, of Norwich, as a “critical step” in its ongoing investigation.
Emma Luxton, director of operations at the SFO, stated that planholders were left “exposed, out of pocket and uncertain about their funeral arrangements” as a result of the firm’s failure.
Pre-paid funeral plans are designed to provide individuals with a means to cover their funeral expenses in advance, thereby easing the financial burden on their families upon their death.
Since July 2022, pre-paid funeral providers have been subject to a regulatory framework requiring authorization from the Financial Conduct Authority (FCA) to operate.
Safe Hands was among numerous companies operating within the previously unregulated sector, and its collapse occurred four months prior to the implementation of these regulatory measures.
FRP Advisory, the administrator for Safe Hands, initially indicated that planholders could expect to receive repayments ranging from 8.5p to 12.5p for every pound lost by June 2025.
However, following a six-month delay, the actual repayment amount to those affected by the funeral firm’s collapse was significantly lower, approximately 4p for every pound.
The total amount owed to planholders is estimated at £70.6 million.
Among those affected is Denise Hudson, from Derby, who invested nearly £2,500 in a Safe Hands plan after seeing a television advertisement in 2019. She subsequently received a check for less than £100 from the administrators last year.
“That was my savings. I gave it in good faith. I actually thought what it said on the tin, it is in safe hands,” she stated.
Hudson informed the BBC that she might “frame” the £96.50 check as a reminder to continue her fight for restitution.
In 2017, Sandie and David Beatty, from Bingham in Nottinghamshire, paid Safe Hands £3,395 to cover the funeral costs for whichever of them died first.
Sandie expressed feelings of “angry, disappointed, sick” upon learning of the firm’s collapse.
Aimee Geary, an NHS worker from Anstey in Leicestershire, contributed £3,000 to Safe Hands in 2017.
Geary commented: “Other people thought I was young [to be planning my funeral]. I’m very organised, and I didn’t want anyone else to have a job when I’m not here.
“It’s sad that you try to plan something and it has been taken away from you.”
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