The church said it was "shocking" people are being buried among strangers due to financial concerns, after Citizens Advice Scotland figures recently showed the number of state-funded funerals has risen by 24 per cent since 2011.
They show more than 550 received a national assistance funeral last year.
Rev Bryan Kerr from Greyfriars Church in Lanark, who represents the Church on a number of national funeral bodies, told the Sunday Express so-called "paupers funerals" offer "very little dignity."
Calling for consistent pricing across Scotland, he explained to the Express: "Local authorities are free to put up the cost of burial plots and cremations effectively profiteering from death and this is something central government should address."
A spokesman for Cosla, a body representing councils in Scotland told Premier the suggestion local authorities are profiteering from death is "wrong and unfair".
Rev Kerr also raised concern over how a burdened of meeting funeral costs can fall upon family members.
He said he had heard of a case where relatives avoided a funeral because they could not met the service costs, and only arrived after the gasket had been lowered into the ground.
Rev Kerr added: "When someone dies their families are expected to come up with thousands of pounds effectively overnight – I think quite a few of us would struggle – and either get themselves into debt or do not come forward."
Speaking on Premier's News Hour, he went on to say: "We need to look at making the funeral payment based on the income and resources of the person who died, not the family who are left behind."
"If those families are in the middle-poor bracket, perhaps when the Department of Work and Pensions refuses to payout the funeral benefit and the funeral payment to help fund the funeral, that's when it becomes challenging."
A Department for Work and Pensions spokesperson told Premier: "Funeral Payments provide an important safety net, covering the full cost of a basic burial or cremation. This support ensures that people can get the help they need while keeping the system sustainable and fair to the taxpayer."
Funeral funding will be devolved from Westminster to the Scottish Government from next year.
Click hear to hear Rev Kerr speaking with Premier's Aaron James. Rev Kerr begins by raising concern the number of people who cannot afford their own funerals is rising.