Taxpayers could pay towards the costs of Ian Huntley's cremation or funeral, unless his family makes alternative arrangements.
The 52-year-old double murderer died in hospital on Saturday after allegedly being attacked by an unknown inmate at HMP Frankland.
Huntley, who killed 10-year-olds Holly Wells and Jessica Chapman in Soham, Cambridgeshire, in 2002, had been in a critical condition in hospital after being hit with a metal bar on Thursday morning.
The former school caretaker was allegedly attacked in a workshop at the high-security jail in Durham. Police said earlier that their investigation into the circumstances of the incident is ongoing.
It is a longstanding policy for the prison service to contribute up to £3,000 towards basic funeral expenses for any death in custody.
The money is only permitted to be paid directly to a funeral director, and must be used to cover "reasonable costs" which include a "simple" coffin, a hearse, and cremation or burial fees.
It cannot be used for a headstone, flowers or order of service sheets, or other expenses considered "non-reasonable", such as hospitality related to any funeral or transportation for mourners.
Previous prisoners whose funeral costs have been covered include the Yorkshire Ripper, Peter Sutcliffe, in 2020, and Raymond Morris in 2014.
If Huntley's next of kin or family members have alternative arrangements, such as a pre-paid funeral plan, money from the state would not be used.
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Huntley's daughter told The Sun on Sunday newspaper that she does not believe he deserves a funeral.
A Ministry of Justice spokesperson said: "The murders of Holly Wells and Jessica Chapman remains one of the most shocking and devastating cases in our nation's history, and our thoughts are with their families."
(c) Sky News 2026: Taxpayers could fund funeral for Soham murderer Ian Huntley
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