An annual review of the funerals market, published today by the
Competition and Markets Authority (CMA), suggests
its Funerals Market
Investigation Order 2021 is continuing to have a
beneficial impact on the costs paid by bereaved relatives when
arranging a funeral.
The review –
based on submissions from large funeral directors operating in
the sector – found that funeral directors operating more than 5
branches charged their customers just over £2,700 for funeral
services between 1 September 2022 and 31 August 2023, on average.
Whilst this is higher (4%) than the previous year, it does
represent a decrease in real terms, once the higher rate of
inflation is factored in.
Over the same period, there was a rise in the numbers of people
choosing unattended funerals – with the total proportion of these
cheaper funerals rising to 11% in 2023 (up from 8% in 2022).
This, coupled with previous annual reviews, suggests there is a
gradually rising trend amongst bereaved families to opt for
remote funeral services, which is likely to be linked to the
requirement to conduct unattended funerals during the COVID-19
pandemic and the desire to reduce costs in response to the rising
cost of living.
While it is too early to determine whether the real terms fall in
the average cost of a funeral represents a positive downward
trend for bereaved families, the CMA is concerned that the
average cost of unattended funerals (with revenues reported by
funeral directors up 12% in 2023) appears to have risen faster
than the rate of inflation. The CMA will continue to keep a close
eye on consumer outcomes in this market.
The CMA is stepping up its enforcement work to tackle those
funeral and crematorium directors who fail to comply with the
Order – with evidence of problems received from customers,
charities, and professionals in the sector and through the CMA’s
active monitoring suggesting just under 250 funeral directors are
failing to comply with the law. Many of these have failed to
display the necessary pricing information for funeral or
crematorium services – in branch and online.
The CMA has written to each of these firms to remind them of
their responsibilities and will escalate its enforcement action
should a funeral director continue to breach the law.
Adam Land, Senior Director of Remedies at the CMA, said:
Cost of living pressures means bereaved families are often having
to make extremely difficult choices when it comes to arranging
funerals for their loved ones.
In 2021, after finding prices had been going up above inflation
for many years, we changed the law to ensure families have
information up front to help them choose the best service which
meets their needs. It’s good news that these rules have continued
to keep costs lower than they would have been without CMA action.
There is still a minority of funeral and crematorium directors
that are failing to comply with the law. They should be under no
illusion – we will continue to enforce the rules and anyone
breaching them can expect a call from the CMA.
Notes To Editors
- The CMA has published guidance and offered
tailored support to funeral directors and crematorium operators
to help boost compliance with the Order. The guidance sets out
to funeral directors and crematorium operators the legal
requirements they must comply with to make bereaved families
better aware about the total cost of the services they may
need, as well as allow them to compare the services of
different providers.
