Soaring funeral costs are being examined by a competition watchdog amid fears that grieving families are being ripped off.
The Competition and Markets Authority said it is “concerned about the effectiveness of competition” in the sector, with its probe to focus on funeral directors and the supply of crematoria services.
Some funeral directors, it said, were taking advantage of the “vulnerability of many people”, with some fees jumping by twice the rate of inflation in each of the past 14 years.
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Insurer Sun Life reveals that the average cost of a funeral package is £9,204. This includes costs of funerals (£4,271) wake fees (£2,061) and professional fees (£2,872).
The figure has risen from £6,698 in 2008.
In the past year alone, cremation fees have risen by an average of 4.9% while burial fees are up by 6.1%. The rate of inflation is 2.2%.
Fee increases have been so steep that some local authorities’ cremation, burial and mortuary services are operating on an average profit margin of more than 43%.
The watchdog’s interim report, published in November, found that a funeral costs 40% of the lowest earners’ annual outgoings.
This is more than they spend on food, clothing and energy combined.
Louise Eaton-Terry, of insurers Royal London, said: “High funeral costs have forced thousands of grieving families into debt so an investigation is overdue and welcome.”
