The Courier & Advertiser (Fife Edition)
Probe ordered into soaring cost of funerals.
Prices have increased by three times rate of inflation in 10 years
Britain’s £2 billion funeral market is facing a major investigation after the competition watchdog found prices have been soaring for “well over a decade”, putting vulnerable people at risk of exploitation.
The Competition and Markets Authority (CMA) said it had “serious concerns” after interim findings of its inquiry launched six months ago uncovered above-inflation price rises for funeral directors and crematoriums.
It found the price of the essential elements of a funeral had increased by more than two-thirds in the last 10 years, almost three times the rate of inflation.
Costs for cremations – which now account for 77% of all funerals – have rocketed by 84% on average, it added.
The CMA said the full powers of a major market investigation were now needed, given the scale of the issues.
It said: “The scale of these price rises does not currently appear to be justified by cost increases or quality improvements.”
Shares in listed funerals firm Dignity plunged 13% after the announcement.
It comes as the government is also planning a crackdown on so-called “ripoff” pre-paid funeral plan providers who prey on the vulnerable.
The Treasury is proposing bringing the sector under the regulation of the Financial Conduct Authority after evidence showed elderly people are being “pressured, harassed and misled” by some operators.
The CMA’s research so far has shown that people generally spend £3,000 to £5,000 organising a funeral.
This would now represent nearly 40% of annual outgoings for those on the lowest income.
The CMA wants to hear from people who have experienced poor practices in the sector and wider industry views on the issues it has identified by January 4.