The poorest people in society cannot afford to pay the costs of funerals, a survey has revealed. Researchers said the average cost of dying – including funeral, burial or cremation and state administration – stands at £7,622, having risen by 7.1% in the past year.

They estimate that more than 100,000 people will struggle to pay for a funeral this year. The authors of the study at the University of Bath's Institute for Policy Research have called on the government to review the system of state support for funeral costs.

In spite of the lowest recorded mortality rates for England and Wales, the cost of dying has increased over recent years. The average cost of a funeral rose by 80% between 2004 and 2013 and is expected to continue to increase.

On average, the price of a funeral, including non-discretionary fees and a burial or cremation, is £3,456. The average amount spent on extras such as a memorial, flowers and catering is £2,006 and discretionary estate administration costs have increased significantly to £2,160.

For families on low incomes, the social fund funeral payment, first introduced in 1988, is intended to support those who struggle to find the money to pay for a funeral.

But the report challenges the effectiveness and availability of this provision. By highlighting an average shortfall of £1,277 that many face, the report suggests "funeral poverty" is now some 50% higher than three years ago.

The Department for Work and Pensions said: "The funeral payment scheme continues to cover the necessary costs of burial or cremation in full, because we know that these costs may vary widely across the country.

"A significant contribution is also made towards the fee levied by funeral directors which is currently set at £700. Other costs are also met in full, for example the cost of any doctors' certificates and certain travel expenses. To put this into context, the average social fund funeral payment last year was £1,225."