QSA's Lindesay Mace welcomes the Competition and Markets Authority's move to an enforcement stance, but calls for further action.
Since the Competition and Markets Authority’s (CMA) Funerals Market Investigation Order 2021 (external link) was brought into force that September - placing several legal requirements on UK funeral directors, including displaying prices online and in branch - our Down to Earth team has reported almost 250 funeral directors to the CMA for non-compliance. So we are unsurprised that the CMA’s recent review of market outcomes (external link), published on 27 January, reported “around a quarter” of funeral directors who were required to provide them with financial information had not done so.
Enforcement action on the way
It is shameful that while many funeral directors have worked hard to become compliant, some are still not making any effort to do this. Therefore, we welcome the CMA’s announcement that they are starting to take enforcement action, with over 100 funeral directors potentially facing this, and we will continue to report any non-compliant companies that we find in the course of our work to support people struggling with funeral costs.
The CMA’s review also examines elements of funeral pricing from September 2021 to August 2022 and finds that they are at “broadly similar levels” to prices at the time of their Funerals Market Investigation. However, broadly similar levels in statistical terms can feel very different to someone facing funeral costs.
Inadequate state funeral benefits
Funeral director charges, which are just part of the overall funeral cost, were found to be £2,639 on average, still far out of reach for thousands of people and around two and half times the maximum amount awarded for these fees by state funeral payments (for people who are eligible). The capped portion of the payment, which is the part that can be used for funeral director fees, is just £1,000 in England, Wales and Northern Ireland (Funeral Expenses Payment) and £1,070.60 in Scotland (Funeral Support Payment).
More action needed on funeral prices
It's also important to remember that previously the CMA’s Funerals Market Investigation identified that prices had risen at a rate significantly above inflation for a decade, so funeral director fees would have to remain at similar levels for some time to completely undo this effect. We are disappointed therefore that the CMA's recent review concludes it is too early to decide whether to consult on carrying out a further investigation, one that could lead to recommending price controls, but we are pleased that the CMA is actively monitoring the situation and will continue to do so.