Dignity welcomes watchdog’s probe into high funeral prices
Dignity has welcomed a competition probe into the funeral sector announced today.
Read more: Dignity shares slide after regulator proposes funeral competition probe
The Competition and Markets Authority (CMA) said it will carry out a full market investigation into the industry after voicing concerns over high prices and a lack of competition.
Dignity, the UK’s only listed funeral company, said it will work constructively with the watchdog during the probe.
“Dignity has made clear that we welcome the CMA's investigation into the funeral market and look forward to continuing our work with the CMA and other industry bodies to protect consumers,” said chief executive Mike McCollum.
The FTSE-listed provider's share price slipped three per cent in early trading to 669.4p, after plummeting from 1,006p in November as the watchdog announced its intention to scrutinise the sector.
The CMA today cited concerns including rising costs for organising a funeral, which it said have grown at twice the inflation rate for the last 14 years.
It also aired fears that funeral directors are charging high prices to grieving people who have not considered a range of choices.
Firms also displayed a reluctance to disclose clear pricing, making it hard to compare providers, the CMA said.
The largest firms have hikes prices by between six and eight per cent each year for the last eight years, according to the watchdog.
Read more: Dignity shares slide after regulator proposes funeral competition probe
Meanwhile high fixed costs and a complex planning regime mean there is a lack of localised competition.
Pippa Wicks, deputy chief executive at Co-op Funeralcare, also welcomed the probe, saying: “We hope it will lead to improved protection for families through access to consistently high standards of funeral care and a range of services that offer value at an affordable price.”
She added: “We’re pleased to see that the CMA investigation will also look at ways in which competition and prices in relation to crematoria services can be improved for the benefit of customers.
“We’ll continue to work with the CMA as they progress with the market investigation.”