Protestors in Scunthorpe marched behind an empty coffin draped in a Union flag to launch a campaign to prevent former service personnel being given paupers' funerals.
A local undertaker says the Government should help pay for former members of the armed forces to be given a dignified funeral.
Currently anyone who dies without any next of kin is given a funeral by their local council.
The Department of Work and Pensions said: "The contribution members of the armed forces have made is valued."
More top news
A Harrogate teenager who was seriously injured in the Manchester Arena terror attack has been visited by the Queen.
A Leeds Beckett student who was reported missing following the Manchester bomb blast died in the terror attack, police have confirmed.
Police have applied for extra security support for Radio 1's Big Weekend, which could mean armed officers patrolling the event in Hull.