The UK Funeral Industry | Why Compare Costs? |  What Are Disbursements? | Sample Funeral Price Comparison

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The UK Funeral Industry

The UK funeral market is currently estimated to be worth around £1billion annually, with in excess of 600,000 funerals taking place each year. There are an estimated 4,000 funeral directors currently offering services in the UK, but exact numbers prove to be difficult to pinpoint as the profession is unregulated therefore anyone can enter it.  This does mean that it is wise to ensure the funeral director you choose is reputable. 

Funeral Prices, can and do, vary enormously both within a local area and between funeral directors so comparing like for like quotes is strongly recommended to anyone requiring funeral related services. Funeral director businesses range from part time, sideline ventures to family-run enterprises to small to medium groups through to international corporations.  One of the main criticisms of the industry by watchdogs and other groups is that funeral homes are not being totally clear as to their true ownership, hence the reason many traditional family business names still exist even though they may have been acquired by larger groups.  Therefore, when acquiring funeral services it is wise to establish exactly whom you are dealing with, as many people opt to choose a trusted local family funeral business, only to find they are dealing with a large corporation.   As already mentioned funeral prices can vary enormously, and as a contradiction to current retail practice, it is not always the national corporations with large buying power that offer the best value services!  As a £1billion annual industry, the funeral trade has also attracted unscrupulous traders who may appear to offer very discounted services as BBC’s Watchdog have already reported on. 

There are two trade associations for the UK Funeral Industry and they have their own strict "Code of Practice" by which their members are bound.  The National Society of Allied and Independent Funeral Directors (SAIF), this association works largely with the independent funeral directors.   The National Association of Funeral Directors (NAFD) has the broader membership as it caters for the whole funeral profession, from independent through to national corporate companies.  The vast majority of funeral homes are members of one or more of these associations and schemes; however there is no regulation or law to insist on membership of any. 

The funeral market in the UK has two industry leaders, The Co-operative Group and Dignity Caring Funeral Services (Dignity Plc).  The Co-operative Group has over 800 branches across the UK and conducts around 90,000 funerals a year.  They also own the North Eastern Co-operative. Dignity has just over 500 branches and conduct 75,000 funeral a year.  Between these two companies, they are currently involved in over 25% of all funerals in the UK. 
There are several other large groups with large numbers of funerals homes.  These are different Co-op Groups (mainly regional co-op's) The Midland Co-operative Society, Southern Co-operative Society, United Co-operative Society, Yorkshire Co-operative Society, Lincoln Co-operative Society, Leeds Co-operative Society, Oxford, Swindon & Gloucester Co-operative Society, Heart Of England Co-operative Society, Anglia Regional Co-operative Society, Chelmsford Star Co-operative Society. 

There are also several privately owned companies who are conducting large numbers of funerals in the UK.
Which? Magazine investigated the funeral industry in 2002 to find significant variations in how prices compare across the industry, and this report highlights the reason why an independent price comparison service is needed by the public in today’s economic climate.
 
 

Which Magazine:  March 7th 2002 - Bereaved consumers - beware unscrupulous funeral directors
A Which? investigation published today (7 March 2002) found dramatic differences in prices and quality of service offered by funeral directors across the UK. 
£800 million a year is spent on funerals in the UK, with two-thirds arranged by independent funeral directors and the remainder split between the Co-op and Dignity Caring Funeral Services. Which? found good and bad advisors at funeral directors all over the UK. But, researchers found that, on average, independent funeral directors were the cheapest, and Dignity the most expensive. 
No training is needed to be a funeral director, and there is no compulsory licensing or regulation of funeral businesses. Understandably, bereaved consumers are unlikely to 'shop around' for a funeral and may be vulnerable to poor service. Many people don't know what to expect from a funeral director and reports show they are less likely to complain than consumers purchasing other goods or services. Numbers of complaints to the Funeral Ombudsman Service more than doubled between 1997-2000, although actual numbers of complaints were low. 
During October 2001 Which? sent undercover researchers to 25 funeral directors around the UK to arrange a cremation for a terminally ill relative. In line with the industry codes of practice Which? expected funeral directors to provide clear information about price and a written estimate of costs; offer a choice of services, give good advice, for example on how to register a death; and to behave in a professional and dignified manner. Dramatic variations in price and quality of service were revealed, including: 
 
  • Estimates of the funeral directors' own costs for a comparable service and coffin ranged from £660 from an independent in Sheffield to £1,415 from a branch of Dignity in Scotland. The average price quoted was £1,040 
  • 10 out of the 25 didn't mention any costs until the researcher asked, at the end of the meeting. An OFT investigation in 2001 found that a staggering 28% of people had no idea of costs until after the funeral had taken place. 
  • 14 of the funeral directors failed to give an adequate choice of coffins (coffin price can range from £85 to over £2,500), and 7 didn't offer a choice at all. On the plus side, none of the funeral directors tried to sell the researcher an expensive, inappropriate coffin. 
  • 12 out of the 25 gave insufficient advice and information about what was involved in arranging a funeral. 
  • 16 funeral directors failed to give researchers sufficient choices about the type of funeral they wanted 
  • The attitude of most of the funeral directors was professional, tactful and sensitive, but some were rude, unhelpful and abrupt. Several made tactless or insensitive remarks, one adviser said 'the gentleman hasn't died yet… I can't even say he's cold.' 
Helen Parker, Editor of Which?, said: 
"People who have just suffered a bereavement are particularly vulnerable, so it's vital that the funeral industry is properly regulated." 
"Which? research found inexplicable price variations in funeral services and patchy service and advice given by funeral directors. This needs to be addressed." 
"We want to see all funeral directors in the UK signed up to a standard code of practice. The code should be monitored and enforced by an independent body." 
Notes 
  1.  To receive a full copy of the Which? magazine article call Martin Chapman on 020 7770 7373. 
  2.  What to Do When Someone Dies is published by Which? Ltd. It can be ordered on Freephone 0800 252100 (£15.99, p&p free), quoting WTD, or at www.which.net or bought from bookshops