Costs of funerals have been increasing significantly in this mind for some time seemingly unabated. With this in mind, Laura Richardson’s latest article is particularly pertinent as it summarises the findings of the Competition and Markets Authority’s (CMA’s) investigation in this regard . . .
The CMA finally released their findings from an in-depth two-year investigation into the rising costs of funerals. The CMA not only investigated the costs of funerals but also the manner in which the service providers provided their pricing information following complaints that many providers failed to disclose their pricing in a clear, upfront manner.
The CMA released initial findings early last year showing that bereaved families believed that their only option was to choose their nearest funeral provider rather than ‘shopping around’, leading to a complete lack of a competitive market for the funeral director industry. Further investigations were therefore undertaken due to the concern that a lack of price competition between funeral providers could continue to fuel an unwarranted rise in funeral service costs, especially given the fact that funeral directors are unregulated by any overarching authority in the UK.
Having concluded their further investigations the CMA has reported that, despite continuing “serious concerns”, the covid-19 pandemic has prevented the CMA’s ability to impose price controls on the funeral director industry, although they have stated that further investigations into industry-wide price controls will take place when the covid-19 pandemic has been overcome.
The CMA has however imposed new directives that require funeral directors to provide clear pricing “in a manner that will help customers to make more informed decisions” in order to attempt to combat the current lack of transparency of current pricing structures.
Funeral directors will also be required to provide detailed payment plans for each customer detailing what payments will be expected at what time, and whether deposits will be required.
Furthermore, incentives for hospitals or care homes to refer people to particular funeral directors will now be banned in order to begin to promote a healthier competition between funeral directors.
Overall the CMA is calling for the government to set up an independent body to oversee the funeral director services industry, citing the fact that people organising a funeral can be in an “especially vulnerable” position and need the protection of an overarching authority.
Whether the costs of funerals will continue to rise is still unknown at this point, and therefore it remains advisable to ensure that you have a financial plan in place to cover the cost of your funeral. The simplest way to combat the rising costs of funerals is through a Pre-Paid Funeral Plan, which allows you to pay for your funeral in advance, at today’s prices!
For further information regarding a Pre-Paid Funeral Plan or to arrange your free initial consultation with our trusted partners, contact Andrew Douglas Wills & Legal Services today.
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