Competition watchdog to probe funeral sector over soaring costs

The competition watchdog has launched a full investigation into the funerals sector after identifying “serious concerns” in its initial probe of the market.

The Competition and Markets Authority said it will carry out a more in-depth investigation because of concerns over large price hikes which it says are “hitting people at their most vulnerable”.

Andrea Coscelli, chief executive of the CMA, said: “People mourning the loss of a loved one are extremely vulnerable and at risk of being exploited. We need to make sure that they are protected at such an emotional time, and we’re very concerned about the substantial increases in funeral prices over the past decade.

“We now feel that the full powers of a market investigation are required to address the issues we have found. We also want to hear from people who have experienced poor practices in the sector, so that we can take any action needed to fix these problems.”

The news comes following a difficult year for Sutton Coldfield-based Dignity, the UK’s largest provider, owning more than 500 funeral directors and operating 22 crematoriums.

Dignity saw its share price fall by half in January when it released a profit warning as the sector continues to be disrupted by a price war.

The company saw its shares drop in September after Co-op offered to beat the cost of ceremonies offered by rivals.

Dignity and the Co-op are the biggest players in the UK funeral market, with market shares of 12% and 16% respectively, and are battling it out for dominance.

Mike McCollum, chief executive of Dignity, said: “Dignity notes the CMA’s proposal to launch a full market investigation and takes its findings very seriously. Dignity has voluntarily been making changes to its business for some time and will continue to review its operations to ensure that we address the CMA’s concerns. We are fully committed to ensuring that vulnerable consumers are protected across the industry going forward.

“Dignity has and continues to make the case for quality, standards and stronger regulation in the sector and support for this continues to grow. We are pleased to see that the CMA notes that quality is important. We look forward to working with the CMA and would welcome the opportunity to show the CMA various Dignity locations to demonstrate the high levels of quality that Dignity adheres to.

“Dignity has committed to making its prices easily available for consumers by putting them online and believes that all operators should be required to follow suit to ensure greater transparency on pricing across the sector.

“We look forward to our continued work with the CMA and other industry bodies to ensure we take the necessary steps to protect consumers and improve quality and standards across the industry.”