Almost 6,000 Scots were given financial support to avoid the risk of a "pauper's funeral".
A public fund paid £8.7 million to people who lost a loved one since it was set up in September last year.
The support is available to people on qualifying benefits such as Universal Credit.
Shirley-Anne Somerville, the Scottish Goverment social security secretary, said: "Coping with the death of a loved one is one of the most difficult events any of us can face – it's even harder when there's extra stress trying to find the money to pay for a funeral."
The average support is £1761 to help with costs of burial or cremation. It covers expenses including travel and flowers.
The Scottish funeral support payment was brought in to replace the UK Government's funeral expense payment as part of the transfer of some powers of welfare.
The cost of funerals had grown dramatically in recent years making it hard for lower-income families to afford a burial themselves.
The scheme can be used towards funeral costs for a baby, child or adult and includes babies who were stillborn.
Somerville said: "It's important that we support people at key times like this. We want to do what we can to stop those who are dealing with grief having to get into debt too.
"The economic impact of Covid-19 means many more people are receiving Universal Credit or other qualifying benefits than previously, which means they could also be eligible for the Funeral Support Payment.
"I'd encourage anyone who thinks they might qualify for this important financial support to find out more and apply. People can apply for the payment up to 6 months after a funeral has taken place, although if you could not apply within this timescale because of Covid-19, we'll accept your application as on time.
"Making sure that everyone gets the financial support they are entitled to is a basic step in putting dignity and respect at the heart of social security in Scotland."
Benefits and Tax Credits you or your partner must get to qualify
- Child Tax Credit
- Universal Credit
- Income Support
- Pension Credit
- Working Tax Credit (disability or severe disability element)
- Housing Benefit
- Income-based Jobseeker's Allowance (JSA), not contribution-based JSA
- Income-related Employment and Support Allowance (ESA), not contribution-based ESA
