On 7th August 2025 the Competition & Markets Authority (CMA) published its ‘Funerals Sector – Annual Review of Market Outcomes’. Here we highlight some of the main findings and points of interest from this report.
Background Information
In February 2024 the Competition & Markets Authority (CMA) published its annual ‘Funerals Market – Review of Market Outcomes’. The CMA’s Funerals Market – Review of Market Outcomes assessed the extent to which the concerns and recommendations raised in its Funeral Investigation Final Report (published in December 2020), and subsequent legally binding Funeral Markets Investigation Order 2021, had been implemented and followed by the funerals sector. The review also considered the impact of these recommendations.
Our blog at the time highlighted some of the key points found in the CMA’s ‘Sunlight Remedies’ Review.
The Latest Review – August 2025
In this, their third annual review of market outcomes in the funerals sector, the CMA undertook a wider review of the funerals sector, focusing on the issues detailed below.
To inform this review and to enable them to understand and assess how the funerals sector has changed since the market investigation, the CMA gathered information, views, and evidence from a range of stakeholders, such as funeral directors, crematorium operators, trade associations, consumer groups and academics.
The findings of this report were mixed and varied, but the very brief summary of the conclusions below are meant as a taster for those interested, and we strongly recommend that you read the CMA Funerals Sector Annual Review of Market Outcomes August 2025 to get a fuller picture of their investigations and findings.
(a) How the cost to funeral directors and crematorium operators of conducting a funeral has changed since the market investigation.
Conclusion: A mixed picture, but for funeral directors, inflationary pressures leading to cost increases, and additional regulatory scrutiny, were the main drivers of reduced profits, together with the rise in unattended funerals. For crematorium operators, more stable levels of profitability may be due to barriers to entry in the market.
(b) How the price of a funeral to consumers has changed since the market investigation.
Conclusion: Whilst the price of a funeral continues to increase, this seems to be slowing to below the corresponding rate of inflation.
(c) How the quality of funeral services has changed since the market investigation.
Conclusion: There was no evidence to suggest that there has been a significant change in the quality of funeral services since the market investigation.
(d) The extent to which consumer awareness of quality has changed since the market investigation.
Conclusion: Increased scrutiny of the funerals sector and higher media interest may have raised consumer awareness of the quality of back-of-house services. However, it is still extremely hard for consumers to access and assess these services, so independent regulatory oversight seems necessary.
(e) How the Order has impacted funeral directors and crematorium operators.
Conclusion: Complying with the Order has lead to an additional administrative load as well as increased costs, but the CMA believes that these are a worthwhile trade-off considering the benefits to consumers of price transparency and service information.
(f) How the Order has impacted consumers.
Conclusion: The Order has ensured that consumers can clearly see important information, such as price, at a time when they may be distressed and vulnerable. However, evidence showed that there was still low levels of consumer engagement and no significant change in behaviour in terms of comparing prices and shopping around.
(g) How the funerals sector is likely to evolve in the next five to ten years.
Conclusion: Recent trends will continue in respect of an increased statutory and voluntary regulatory burden, and rising costs as a result of this and due to inflation. Consumer behaviour in relation to price sensitivity and shopping around will increase, and the shift away from traditional funerals will continue.
Following on from this report, the CMA Board has decided not to consult on a further market investigation reference (MIR) or produce further annual reviews because they do not feel that additional transparency measures are appropriate, nor would they improve the competitive process. They also suggest that price control regulation may be counterproductive. However, they state that regulation is the way forward and that that they ‘will continue to monitor the information we receive under the Order and provide this information to the UK government and devolved administrations in Northern Ireland and Wales to support our ongoing engagement with them on the regulation of the quality of funeral services in England, Northern Ireland and Wales‘.
It is always interesting to get insights into the funeral sector. It is, of course, a diverse, complex and rapidly evolving area, and the CMA’s findings will inform further research and regulation, so we feel it is important to stay informed and up to date. Once again, we encourage readers to look at the full report CMA Funerals Sector Annual Review of Market Outcomes August 2025 for the full analysis.