Cremation 'monopoly' force prices up

Published by Edmund Greaves on 22 June 2018.
Last updated on 22 June 2018

Cremation monopolies forcing prices up

Families living in areas with few cremation services are being stung by higher cremation costs, thanks to a monopoly effect.

The national average cremation cost is now £784, according to funeral service price comparison Beyond. The 10 most expensive services, however, charge £1,070, on average 14.4 miles from their nearest competitor. This lack of local competition is, in effect, creating regional monopolies.

This news comes as the Financial Conduct Authority (FCA) announced a crackdown on unscrupulous funeral plan providers, a growing issue facing retirees considering end-of-life plans. The Competitions and Markets Authority (CMA) has also launched a separate probe into the funeral market.

Beyond found that when a crematorium has no competition within 7.5 miles, prices tend to shoot up considerably. As cremations count for nearly 80% of all funerals, this is leaving many families facing high costs due to a lack of market competition.

Of the 20 most expensive crematoriums in the country, all but one of them are owned by a firm called Dignity, with the remaining one owned by Parkgrove. See the table below for the 20 most expensive crematoriums in the UK:

Crematorium Distance to nearest crematorium (miles) Price of cremation
Moray 47 £1,070
Surrey & Sussex (Crawley) 18 £1,070
Dundee 16 £1,070
Parkgrove (Friockheim) 16 £1,070
The Counties (Northampton) 10.5 £1,070
Heart of England (Nuneaton) 9.5 £1,070
Chichester 9 £1,070
Oxford 8 £1,070
Randalls Park (Leatherhead) 7.5 £1,070
Beckenham 2.5 £1,070
Earlham 18 £1,060
Norwich 13 £1,060
Lancaster & Morecambe 18.5 £1,055
Loughborough 10 £1,035
Basingstoke 12 £1,025
Glynn Valley 23.5 £999
Hawkinge 8.5 £999
Charnock Richard (Chorley) 8 £999
Exeter & Devon 4.5 £999
East Lancashire (Bury) 3.5 £999

Source: Beyond, June 2018

James Dunn, co-founder of Beyond, comments: “For far too long, not enough has been done about spiralling cremation costs. Mourners are being exploited, and it’s fantastic news that the CMA has launched its probe into this sector.

“In everyday life, it can pay to shop around for a better deal. In death, however, it’s not always possible to go elsewhere and consumers need to be protected when providers can essentially charge what they like.

“Prices should not be allowed to spiral out of control in areas where there is no competition. No provider should be able to cash in on grief in this way.”

A spokesperson for Dignity says: “People tell us that the most important factor in organising a cremation is being able to make a booking that allows them sufficient time to pay their respects to loved ones.

"Our fee structure gives customers and their families a number of choices at different price levels. Dignity crematoriums include components that our competitors often charge separately for, such as legal and practical necessities.

"Compared on a price per minute basis, Dignity is cheaper than the majority of local authorities and private providers. Moreover, Dignity offers a direct cremation service in all of these locations for which the cost can be as low as £499.”

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All a ploy to rack up the

All a ploy to rack up the sale of "Over -50s" and "Funeral package" insurance?
Both are candidates to be the next big PPI-like scandal

Funeral costs are

Funeral costs are astronomically excessive and seek to exploit mourners at their most vulnerable time.
It's about time costs were regulated.

The subject of the article is

The subject of the article is interesting but your coverage is a bit misleading and slightly skewed against Dignity and pro-co-op..
Firstly - dignity are not the only owners of crematoria; yiu have failed to mention the spiralling costs charged by the local authorities who use this necessary service to generate income. I'm in West Yorkshire & my area is one of the most expensive outside London because they can get away with it as councils have the monopoly.

As for the co-op offering direct cremation, this in no way addresses the cost of the actual cremation but it will save a family money on the cars , flowers and a service because direct cremation is just that: deceased in a box, taken in a van and cremated; nothing else.

Essentially the article isn't comparing like for like between the coop and divinity for the aforementioned awrvices and it doesn't address local authorities using this as a cash cow - which is a bigger scandal