Competition watchdog vows crackdown on rip-off funerals

The competition watchdog on Thursday threatened to clamp down on undertakers after finding vulnerable customers were paying over the odds to bury their loved ones.

The Competition and Markets Authority has started a phase two investigation into funeral providers after discovering larger-than-necessary price hikes over more than a decade.

The CMA could force more transparency on price lists, a code of practice, the setting-up of a regulator and price caps.

Prices have risen around 6% a year since 2003, with the average UK cost around £4,300, plus £2,000 on flowers and catering.

For low-earners, that is more than they will spend on energy, food and clothes in a year.

“The vulnerability of customers and difficulty in engaging with the process of buying a funeral appears to have been a major factor in enabling suppliers to charge high prices,” the CMA said.

It said customers could save £1,000 by shopping around but many didn’t because they were too upset to look.

The sector generated £1.6 billion in 2017. Around 500,000 funerals are held in the UK every year.

The only listed funeral provider, Dignity, saw shares fall 3% to 668.5p. It has promised to work with the regulator.