Co-op ups ante in funeral price war with pledge to beat competitors' quotes

Cost of simple burial cut by £100 to £1,895, UK's largest funeral provider announces

The cost of burials, cremations and related services have risen sharply over the past decade, leaving as many as four million people in hardship (Getty)

The Co-op has joined a price war among funeral providers, offering to beat the quote of any competitor.

Co-op’s funeralcare arm also announced on Monday that it had reduced the cost of its lowest-priced “Simple” funeral by £100 to £1,895. Shares in rival funeral provider Dignity fell 6.5 per cent after the announcement.

The reduction comes as regulators investigate concerns that the bereaved may be getting ripped off by some rogue funeral providers.

The cost of burials, cremations and related services have risen sharply over the past decade, leaving as many as four million people in hardship after paying for a service for a loved one, according to a recent YouGov survey.

Robert Maclachlan, managing director of Co-op Funeralcare, said the findings were “startling” and that his company was making changes in order to tackle funeral affordability.

“Funerals are becoming increasingly price sensitive, and in the last two years we have seen a huge shift in the number of clients seeking affordable funeral choices,” he said.

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“Our new guarantee to beat on price means that families choosing a funeral with the Co-op can be assured that they are receiving a competitively priced funeral, with no compromise on our high standards of care.”

Co-op said it had now reduced the cost of a basic funeral by 15 per cent since 2015. Co-op’s 4.7 million members will be able to take advantage of a further £200 discount on all of its funeral options.

Research from Royal London released last week suggests that increased competition among funeral providers has begun to reverse the trend of rising prices. It found the average cost of a funeral dropped slightly over the past year to £3,757.

However, the competition regulator launched an investigation into the £2bn funeral market in June over concerns consumers may be getting a bad deal.

The Competition and Markets Authority will assess whether funeral firms are giving customers enough information to make the right choice.

Elderly people are being “pressured, hassled and misled” by unscrupulous firms, according to research by Citizens Advice and campaign group Fairer Finance.

Separately, the Treasury launched its own consultation into pre-paid funerals to prevent people being “ripped off” when they are at their most vulnerable.