Until death do us part from our cash - the rising cost of funerals

When a love one dies there is often a mixture of memories and wreckage left behind – and it is for the family to sort through.

The cost of dying is not something that sits on the mind of people everyday, but the sad truth is that it often catches people unaware and before they know it grieving families are thrust into a world or thinking about funeral prices.

Britain’s £2 billion funeral market is facing a major investigation after the competition watchdog found prices have been soaring for “well over a decade”, putting vulnerable people at risk of exploitation.

The Competition and Markets Authority (CMA) said it had “serious concerns” after interim findings of its inquiry launched six months ago uncovered above-inflation price rises for funeral director and crematoria services.

It found the price of the essential elements of a funeral had increased by more than two-thirds in the last 10 years, almost three times the rate of inflation.

Costs for cremations – which now account for 77 per cent of all funerals – have rocketed by 84 per cent on average, it added.

Aubrey Kirkham is a funeral director in Shropshire and he says he has some serious concerns about the industry, and believes a full investigation would be beneficial.

"Cremations at crematoriums have a fee and they have increased well above inflation in Shropshire for the last nine years," he said.

"And we have also seen a fair rise in clergy costs too."

The CMA said it believed the full powers of a major market investigation were now needed, given the scale of the issues uncovered.

It said: “Initial work indicates problems with the market that have led to above-inflation price rises for well over a decade – both for funeral director services and crematoria services.

“The scale of these price rises does not currently appear to be justified by cost increases or quality improvements.”

Shares in listed funerals firm Dignity, which runs both Shrewsbury and Telford's crematoriums, plunged 13 per cent after the CMA announcement.

It comes as the Government is also planning a crackdown on so-called rip-off pre-paid funeral plan providers who prey on the vulnerable.

"One thing that really does need looking at is the pre-payment market," says Aubrey. "Television is bombarded with adverts and these people aren't doing it to help the bereaved, they are doing it for profit."

Aubrey believes the "big companies" charge customers more than is actually needed to pay for their funerals.

"It gets me very agitated," he said. "When you challenge them on it they say its to cover things like marketing and admin.

"But these people have already given them money for the funeral. With pre-payment the money is taken before a person dies, so its not taking advantage of people in a vulnerable state in that respect, but the deduction's are taken from them at a time of need."

The CMA’s research so far has shown that people generally spend £3,000 to £5,000 organising a funeral.

This would now represent nearly 40 per cent of annual outgoings for those on the lowest income – more than they spend on food, clothing and energy combined.

It also found that customers can save more than £1,000 by looking at a range of choices in their local area, although many are in distress and unable to do this, leaving them vulnerable to high prices.

"What people need to do is ring around for prices," says Aubrey. "Don't be afraid to ask for a price, funeral directors will give you them."

Aubrey explained there are two aspects of the invoice, the funeral director's bill and the dispersement, which includes a raft of other costs such as burials, doctors' fees and newspaper advertisements.

"Make sure you compare them like for like, not just the total cost," said Aubrey. "Bear in mind there are costs that funeral directors can't control, so be confident you are getting the best price.

"It can be very difficult when people are grieving, but it is important for people to know what things cost.

"Now if a family is in serious need and there is no money then they can contact the local authority."