Funeral costs increased slower than inflation after CMA order

An annual review of the funerals market by the CMA has suggested that its Funeral Market Investigation Order from 2021 continues to have a “beneficial” impact on the costs paid by bereaved relatives when arranging a funeral. 

The review, which was based on submissions from large funeral directors operating in the sector, found that funeral directors operating more than five branches charged their customers just over £2,700 for funeral services between 1 September 2022 and 31 August 2023 on average. 

While this is higher by 4% than the previous year, the CMA says this represents a decrease in real terms once the higher rate of inflation is factored in. 

Over the same period, the CMA saw a rise in the numbers of people choosing unattended funerals, with the total proportion of these cheaper funerals rising to 11% in 2023. According to the authority, this suggests there is a gradually rising trend amongst bereaved families to opt for remote funeral services as families desire to reduce costs in response to the rising cost of living. 

However, the CMA has expressed concern that the average cost of unattended funerals has risen by 12% in 2023, appearing to have risen faster than the rate of inflation. 

The CMA has also revealed that it will be stepping up its enforcement work to tackle funeral and crematorium directors who fail to comply with the 2021 Order. 

The authority’s active monitoring suggests that just under 250 funeral directors are “failing to comply with the law”, as many have failed to display the necessary pricing information for funeral or crematorium services in branch and online.

As a result, 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.” 

He added: “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.”