People who have lost loved ones could be being exploited by funeral directors who are charging way over the odds for burials.
An investigation by the Competition and Markets Authority over the last six months has found a dramatic increase in the costs of burials and cremations, well above the rate of inflation.
But neither the actual costs, or the quality of the services provided, have risen by the same rate, the six month study found.
People generally spend between £3,000 and £5,000 on a funeral. The prices have increased by three times the rate of inflation in the last decade.
For people on the lowest incomes, the cost of burying or cremating a relative could use up as much as 40% of their annual income - more than they spend on food, clothing and energy bills combined.
The CMA said today: "Customers could save over £1,000 by looking at a range of choices in their local area. However, people organising a funeral are usually distressed and often not in a position to do this – making it easier for some funeral directors to charge higher prices. Prices are also often not available online, making it difficult to compare options.
"While some smaller funeral directors have sought to keep their prices low, other providers – the larger chains in particular – have implemented policies of consistently high year-on-year price increases. A number of these have now introduced lower cost funeral options, but this doesn’t go far enough to make up for years of above inflation price hikes.
"The CMA’s evidence also indicates most people who organise a funeral remain extremely vulnerable to exploitation and future rises in charges."
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."
Cremations account for 77% of funerals, yet there are limited choices for most people in their local area and fees charged by crematoria have increased by 84% on average in the past 10 years, more than three times the rate of inflation.
The CMA is now to launch a further inquiry into the charges facing bereaved people.
Frank Field, the MP who chairs the Work and Pensions Committee which raised its concerns over the prices of funerals and cremations back in 2016, welcomed the probe.
He said: "The Committee reported on how many poorer people are ripped off by funeral directors.
"I'm glad the CMA has recognised the need to take an in depth look at this market, to put an end to the exploitation of bereaved people."
