Covid crisis scuppers competition regulator's probe into funerals industry despite "rip-off scandal" in recession

Also, strict curbs on the kinds of funerals people are allowed to have and the numbers of mourners have temporarily meant a total change to the kinds of funeral services being offered, with only a stripped back, basic service and small congregations. At one stage that meant a maximum of six although that has now been relaxed to up to 30 if social distancing can be observed.

That has also made it impossible for the CMA to form a proper and considered view of the way the market normally runs.

It has also hit hard the profits of funeral directors such as Dignity and Coop and crematoria operators - another factor that has made setting reasonable price controls impossible.

Finally, the CMA recognised that local authorities, devolved and central government who would have to implement some of its recommendations were too busy due to the pandemic to do so.

However, while its wings have been clipped, the regulator has still made it clear that the market is not working and reforms are needed to protect the public from being overcharged and offered sometimes poor service.

As a stopgap, it is ordering funeral directors and crematoria to be clearer in setting out the prices of their various services and packages and called for England, Wales and Northern Ireland to set up an inspection and registration regime to monitor the quality of services. Such a regime already exists in Scotland.

The CMA found

::people generally do not shop around due to the distressing circumstances around bereavement, only going to the nearest crematorium and using a local funeral director usually recommended by a friend.

::pricing and product information is not provided consistently, making it hard for consumers to compare offers

::Fees for undertakers and crematoria have increased at well above inflation for at least a decade

::Most people believe funeral directors are regulated when they are not in England, Wales and Northern Ireland

::Crematoria are usually the only one within a reasonable distance meaning consumers have no real choice about where to go.

Dignity, one of the biggest funeral chains in the UK, has seen its share price hammered by fears of a major crackdown from the CMA. It warned earlier this year that its profits had been hit hard by the basic nature of the funerals it was now having to offer due to Covid-19. Dignity shares rose 40% to 549p today.

Covid-19 has meant funeral homes are having to offer cheap, basic services for the deaths of elderly people who would, had they lived their full lives, have had traditional, expensive ones, meaning a portion of the future market has been holed out for funeral directors.

Sam Tyrer, managing director of Co-op Funeralcare, said: “As the UK’s largest funeral provider, the Co-op is proud to have led the way in driving changes in the industry – calling for regulation of the sector, lowering prices and increasing choice and transparency.

“The Co-op has taken a range of steps to significantly reduce funeral price and as the CMA notes, the market has adapted at pace to respond to the devastating loss caused by coronavirus.

“We have fully engaged with the CMA through the process and look forward to continuing to do so in the coming months to secure the best outcome for bereaved families.”