Undertakers to make costs 'clearer'

Funeral directors should provide clearer pricing

The Office of Fair Trading (OFT) has called on undertakers to make their charges clearer.

The competition watchdog warned on Friday that the funeral industry may be taking advantage of the bereaved, encouraging them to spend more than they can afford.

A funeral is the classic distress purchase

Office of Fair Trading

The warning follows a year-long inquiry into the funeral industry by the OFT.

The OFT, which is also concerned about competition in the industry, said that customers must be given clear information about all the options open to them.

State of care

It wants individual funeral directors to make it clear who their parent company is.

While some people believe they are shopping around, in fact many funeral directors are part of a chain.

Recommendations

More transparent charges

Clear and reliable information

Consumers should be able to choose their own funeral director in hospitals

During recent years, an increasing number of funeral businesses have been taken over by large corporations.

In particular, a number of American multi-nationals have bought funeral directors in the UK, such as Service Corporation International, a Texan-based funeral company.

Funerals have also become increasingly expensive in recent years.

In 1991 the average cost of a funeral including burial was £893, but in 2000 it costs £2,048 - a rise of 129% according to the "Oddfellows" survey of Funeral Costs in Britain.

A cremation in 2000 cost £1,215 compared to £726 nine years before - an increase of 67%.

Taking advantage

The OFT is concerned that some funeral directors could take advantage of the bereaved.

Price of burials has risen by 129% in under 10 years

The report said: "A funeral is the classic 'distress' purchase. People are unlikely to spend a lot of time thinking about the purchase prior to the need.

"In these circumstances the funeral director is able to price at the level which the ill-informed person is prepared to pay, rather than a price set by competition."

The OFT has produced leaflets to help people arrange a funeral and advice on how to choose a funeral director.

Copies can be ordered via e-mail ([e-mail]), by calling (0870 60 60 321 - national call rates apply) or by post. Write to Office of Fair Trading, PO Box 366, Hayes UB3 1XB.