New rules will force funeral firms to be more open about what they charge, making it easier for us to shop around.
New rules have now come into force requiring funeral directors and crematorium operators to be far clearer about what their services will cost.
The rules have been introduced by the Competition and Markets Authority (CMA) following an in-depth investigation into the sector.
It raised serious concerns about the way that prices weren’t being published properly, leading to thousands of families across the country feeling ripped off and taken advantage of at a time when they were particularly vulnerable.
What funeral firms must do
Funeral firms had been given three months in order to get their houses in order ahead of the new rules going live.
As a result, funeral directors are now legally required to display a standardised price list in their window at their premises, as well as on their website.
This price list needs to include the following:
- The headline price of a funeral;
- The price of the individual items comprising the funeral;
- The price of certain additional products and services.
To give an example from a local funeral director, the overall cost comes to near £2,500, but it has broken down the various elements involved in that and what they cost; taking care of the legal arrangements, providing a suitable coffin, collecting the deceased, providing viewings of the deceased for loved ones, and taking them to the funeral venue in a hearse or other suitable vehicle.
Meanwhile, crematorium operators are required to provide specific price information to funeral directors and customers alike, displayed in the same places.
The CMA said its investigation had highlighted a host of concerns around the previous setup, such as the fact that prices for similar services differed wildly between rival firms, and that the price information was provided in such a way that it was hard to compare and choose the right combination of services.
Alongside forcing funeral firms to be more open about their charges, certain practices within the industry have been banned.
For example, funeral directors can no longer offer ‘incentive’ payments to places like hospitals, hospices and care homes to encourage them to refer customers over, not solicit for business through coroner and police contracts.
In effect, taken together the new rules eliminate some of the ‘old boys club’ around the funeral industry, giving people the ability to find out what they are likely to pay from the outset and shop around for a service that they can actually afford.
Dropping into debt because of death
This is crucial because huge numbers of people are finding themselves dropping into the red in order to cope with the cost of paying for a loved one’s send-off.
According to the most recent report from SunLife, funeral costs have jumped for the 17th year in a row, with the average cremation now costing £3,885 and the typical burial costing £5,033.
Throw in the other ‘send-off’ costs, like a memorial, death notices, flowers, catering for a wake, and the study reckons the overall cost of dying is now an incredible £9,263.
All too often the deceased doesn’t leave enough money behind to cover the cost of their send-off either, leaving it to their loved ones to stump up the cash.
One in seven families were found to have suffered financial hardship paying for a loved one’s funeral, jumping to one in three for Covid-related deaths.
One in four had to turn to a credit card, with a similar proportion asking friends to borrow money. Almost one in five (17%) have opted to sell their belongings in order to raise the funds needed.
Will you shop around?
It’s obviously welcome that funeral firms are going to have to be more transparent about their charges, and what’s included. Funerals are expensive enough, without being hit with additional fees that you weren’t expecting.
But ultimately the reforms are only going to be effective if we make use of them and actually shop around when the time comes.
I know that I’m unlikely to be great at this ‒ if I’m feeling emotional over the loss of a loved one, I can easily imagine that I would simply sign up to the first service I found in a bid to get on with it.