Independents undercut national rivals on funeral plans, report finds

Independent funeral directors have reduced the cost of direct cremations over the past year, even as larger national providers increased their prices, according to a new report by consultancy Funeral Solution Expert (FSE) and the National Society of Allied and Independent Funeral Directors (SAIF). 

The annual report –  entitled ‘What is the Real Average Cost of a Funeral?’ – found that the average price charged by independents fell by 0.6% to £1,873. By contrast, the cost of services from specialist national operators rose by 12.5%.

Market leader Pure Cremation charges £1,495 for an at-need direct cremation – £378 less than the independent average – but its prepaid plan has climbed 25% in three years to £1,995, higher than many local equivalents.

Direct cremations, which involve a cremation without a formal funeral service, now account for 15.3% of UK funerals, up from 12% in 2024. The report is based on a survey of more than 200 funeral directors and consumer research with 6,000 adults.

Declan Maguire, immediate past president of the SAIF, said: “Our latest funeral costs report demonstrates that the emerging direct cremation market is incredibly price sensitive and we are seeing established traditional funeral directors begin to challenge online providers, which have grown on the back of pandemic restrictions and eye-watering marketing budgets.

“While on the face of it national operators still appear cheaper, the final cost of a direct cremation with a big brand can work out the same or even more than an independent funeral director. This is because small firms tend not to disaggregate their prices, meaning the advertised cost is exactly what a consumer will pay.”

FSE also reported that most bereaved families prefer their loved one to be cared for within 15 miles of home. In addition, 80% of respondents said they would rather appoint a funeral director than use a new entrant without professional experience, while 49% would specifically favour a local independent firm.

The study estimated the average cost of a funeral arranged by an independent funeral director at £4,108, up 4.8% from £3,921 last year. That figure is lower than the £4,285 average quoted in SunLife’s Cost of Dying Report in January. 

SAIF argued that SunLife’s calculation is outdated because it merges burial and cremation costs, creating a distorted picture of the market.

Terry Tennens, chief executive of SAIF, added: “We continue to express concerns about average funeral cost reports by corporations that have a commercial interest in inflating the price of a funeral. It’s clear from FSE’s analysis that there are still flaws in the way these costs are calculated.”

Four years after the Competition and Markets Authority (CMA) introduced price transparency rules, SAIF has issued a warning that “misleading research” could confuse grieving families during an already difficult period.