Funerals market faces probe following decade of above-inflation price hikes

THE COMPETITION and Markets Authority (CMA) is to conduct a major probe into the funerals market after initial findings of its investigation uncovered “aboveinflation price rises for well over a decade”.

The CMA said it had “serious concerns” over the market after interim findings of the inquiry launched six months ago.

It said: “Initial work indicates problems with the market that have led to above-inflation price rises for well over a decade – both for funeral director services and crematoria services.

“The scale of these price rises does not currently appear to be justified by cost increases or quality improvements.”

It added that given the scale of the issues uncovered, it believed the full powers of a major market investigation were needed.

Andrea Coscelli, chief executive of the CMA, said: “People mourning the loss of a loved one are extremely vulnerable and at risk of being exploited.

“We need to make sure that they are protected at such an emotional time and we’re very concerned about the substantial increases in funeral prices over the past decade.

“We now feel that the full powers of a market investigation are required to address the issues we have found.

“We also want to hear from people who have experienced poor practices in the sector, so that we can take any action needed to fix these problems.”

Shares in listed funerals firm Dignity plunged 16 per cent after the CMA announcement.

Mike McCollum, chief executive of Dignity, said: “Dignity notes the CMA’s proposal to launch a full market investigation and takes its findings very seriously.

“Dignity has voluntarily been making changes to its business for some time and will continue to review its operations to ensure that we address the CMA’s concerns. We are fully committed to ensuring that vulnerable consumers are protected across the industry going forward.”