Huge funeral costs investigation development

First published by Author on November 29, 2018 in the following categories: Industry Investigations Latest Pricing and tagged with cma | competition law | funerals market | market abuse | pricing

There’s been a huge development in the regulator’s funeral costs investigation that we’ve been tracking for a long time now.

The Regulators, the CMA (Competition and Markets Authority), are set to move from a market study to a referral for a market investigation. Their interim report states that there are “reasonable grounds for suspecting that a feature or combination of features of a market or markets in the UK prevents, restricts or distorts competition”.

The CMA now want to look into any adverse impact on the consumer. For a huge and sensitive market that’s worth something like £2bn a year, this is big news.

CMA’s funeral costs investigation set to ramp up

The CMA’s funeral costs investigation is set to ramp up over the referral for a market investigation. With some consumers said to be paying up to £5,000.00 for a funeral nowadays, honouring our dead comes at a huge expense.

It’s understood that the average base cost of a funeral (£4,271.00) has increased by 68% in the last decade alone. The average cost for a cremation has increased by 84% to £737.00. Both far surpass the rate of inflation, which has been 25% in the same period.

Costs appear to be rising at significant rates with very little explanation as to why. A growing population means there’s no ‘shortage in demand’ so to speak (to put this sensitive matter into formal terms).

A lot of big companies are said to be responsible for the highest increases. The CMA’s study indicated that people could save thousands if they looked around and compared packages. But, at a time as sensitive and upsetting as a funeral, are people doing that? If they aren’t, are some funeral directors then exploiting this fact?

You wouldn’t like to think that anyone would aim to exploit vulnerable people. That doesn’t mean that it doesn’t happen, though…

Widening of the funeral costs investigation welcomed

The widening of the funeral costs investigation has come as a welcome move to many.

The Commons Work and Pensions Committee said that: “Many poorer people are ripped off by funeral directors”. They welcomed the CMA’s decision to look at the market further to, “put an end to the exploitation of bereaved people”.

Citizens Advice were also supportive of the decision.

A spokesperson from 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.”

What’s next for the funeral costs investigation?

The CMA are now set to consult interested parties as the funeral costs investigation widens.

We will continue to monitor developments. Where a breach of vital competition laws has taken place, legal action may follow.