Co-op steps up funeral price war

THE UK’s biggest funeral director has ramped up a price war with a pledge to undercut its rivals.

Co- op Funeralcare said it would beat any quote given by its competitors – offering a likefor-like service for less cash.

It is the latest move by the firm to slash the cost of funerals, with the guarantee on offer from today.

Co-op, which conducts 100,000 funerals each year, said its research had found millions of families struggled financially after a loved one died.

An annual ‘cost of dying’ report by insurer Sunlife today also shows the average cost of a funeral in Britain has rocketed by nearly 70pc in the past decade, to £4,271.

Robert Maclachlan, managing director of Co-op Funeralcare and Life Planning, said: ‘Funerals are becoming increasingly price sensitive, and in the last two years we have seen a huge shift in the number of clients seeking affordable funeral choices.

‘Our new guarantee means families choosing a funeral with us can be assured they are receiving a competitively-priced funeral, with no compromise on our high standards of care.’

The rising price of funerals has prompted concern in recent years, with research showing deceased relatives are leaving less cash to cover the costs. Families are often left with no choice but to cover an average shortfall of £2,559, according to Sunlife.

It has forced some to take desperate measures to trim costs, such as not embalming their loved one’s body or transporting it in their own vehicles.

And on top of the costs of a funeral, the Co-op said legal fees associated with putting a dead person’s affairs in order typically set families back an extra £4,500.

Co-op started cutting prices two years ago and is today due to reveal another £100 cut to its most basic plan – taking the cost to just £1,895. The escalating price war has taken its toll on rivals who have been forced to follow suit, with Dignity issuing a profit warning earlier this year.

Consumers are also becoming savvier, using price comparison websites to find the best deals.

The Competition and Markets Authority is probing the 2bn funeral industry to see if prices are being explained clearly enough to ‘very emotionally vulnerable’ customers.

It follows complaints from some families who have been hit by extra costs – often running to thousands of pounds – for services they assumed were included in their plans.