Here’s a curious thing.
The deadline to submit responses to the Competition and Markets Authority’s consultation on their proposal to make a market investigation reference was 5pm on Friday 4th January.
This is specified on page 132 of their Interim Report, in bold font: ‘Such comments should be provided no later than 5pm on 4th January 2019‘.
Like many others, the GFG absolutely busted our guts to get our response submitted in time. In fact, much of last week was spent ensuring that we provided a thorough and honest response to all of the questions asked. We thought that the deadline was just that – the latest time or date by which something should be completed.
But for some reason, it seems that at least one of the funeral trade associations have been given an extension, and are currently ‘developing their response’, according to their Facebook post today. Three days after the deadline.
We’re underwhelmed at this, to say the least.
Are you connected to funerals in any way?
Are you somebody who has an interest in what goes on in funeralworld?
Have you had to arrange a funeral, or had to think about funeral arrangements for someone close to you?
Or do you work in the funeral sector?
Have you seen or heard things that you know are just wrong?
Are you concerned about aspects of your work, prices that you can’t justify to clients, procedures that you have to follow that you find uncomfortable, things that have gone on behind the scenes that worry you?
Have you been a bit busy recently and not got round to responding to the consultation launched by the Competition and Markets Authority at the end of November?
YOU’VE ONLY GOT FIVE DAYS LEFT.
Comments are invited on the CMA’s provisional decision to make a market investigation reference (MIR) in relation to the supply of services by funeral directors at the point of need and the supply of crematoria services in the UK.
Such comments should be provided no later than 5pm on 4 January 2019 to:
Funeral market study team
Competition and Markets Authority
This is hugely important.
It could completely change the landscape of the funeral sector for the benefit of people who need to arrange funerals. And that, effectively, will be all of us.
Please, make sure that the CMA hears from people from all walks of life who have an interest in how the funeral sector is currently operating.
If you have relevant experience or thoughts on the proposed investigation into the funeral sector, then make your voice heard.
If you don’t take the time to write and tell the CMA what you think, the responses received will be dominated by replies from corporate funeral operators and trade associations.
Your experience matters.
Your opinion matters.
You are the people the CMA need to hear from.
It’s time to speak up.
The full interim report and details of the consultation can be downloaded here, along with the findings of the research commissioned by the CMA to understand the behaviour, experiences and decision making of people who had recently engaged the services of a funeral director.
The report is a lengthy document but well worth reading – if you haven’t got time to do so, then here is a precis of what the CMA is inviting comments on:
‘The CMA considers that this interim report identifies significant concerns about the effectiveness of competition in relation to the supply of funeral services at the point of need and the supply of crematoria services in the UK.’
‘The CMA welcomes representations from interested parties on the provisional decision set out in this document. The CMA wishes to stress the importance of the consultation process in assisting the CMA’s decision making and urges interested parties to engage with the consultation. Respondents may wish to reply in relation to the supply of services by funeral directors at the point of need, in relation to the supply of crematoria services, or both. In doing so, respondents may wish to consider the following questions:
Do you consider that the CMA’s analysis is correct with respect to the suspected features of concern in the supply of:
- services by funeral directors
‘8.31 Based on the evidence and our analysis set out in section 4, our provisional view is that there are reasonable grounds for suspecting that one or more of the following features or combination of features prevents, restricts or distorts competition in the supply of services by funeral directors at the point of need in local areas:
- Customers’ vulnerability and difficulty in engaging at the point of need.
- Customers’ unresponsiveness to measures of price and quality; they largely choose a funeral director on the basis of recommendation or personal experience.
- Customers’ inability to assess certain aspects of quality and the value for money of all options offered given funerals are an infrequent purchase and customers are often inexperienced.
- Lack of transparency: reluctance of firms to publish / disclose clear prices (including online) or to provide comprehensive information on quality and range.
- Point of sale advantage: ability of suppliers to largely control the decision-making process leading to the sale and its outcome.
- Ineffective self-regulation in respect of information transparency – no mandatory publication of online prices, absence of publication of inspection reports.’
- crematoria services
‘8.33 Based on the evidence and our analysis set out in section 5, our provisional view is that there are reasonable grounds for suspecting that one or more of the following features or combination of features prevents, restricts or distorts competition in the supply of crematoria services in local areas:
- Customers’ vulnerability and difficulty in engaging at the point of need.
- Customers’ unresponsiveness to measures of price and quality; they largely choose a crematorium on the basis of location or personal experience.
- Low numbers of crematoria providers in local areas.
- High barriers to entry arising from the planning regime and high fixed costs, which limit the number of crematoria in each local area.’
Do you consider that the CMA’s analysis is correct with respect to the reference test being met in relation to the supply of:
- services by funeral directors at the point of need (see paragraphs 8.12 to 8.37) and
- crematoria services (see paragraphs 8.12 to 8.37)?
Do you agree with the CMA’s proposal to exercise its discretion to make a reference in relation to the supply of services by funeral directors at the point of need and the supply of crematoria services (see paragraphs 8.38 to 8.96)?
Do you consider that the proposed scope of the reference as set out in the draft terms of the reference in Appendix F, would be sufficient to enable any adverse effect on competition (or any resulting or likely detrimental effects on consumers) caused by the features referred to in paragraphs 8.31 and 8.33 to be effectively and comprehensively remedied?
Do you consider that the features which the CMA has identified that may prevent, restrict or distort competition are capable effectively and comprehensively remedied by UILs (undertakings in lieu of a MIR)?
Do you have any view on our current thinking on the types of remedies that an MIR should consider (see paragraphs 8.66 to 8.86)? Are there other measures we should consider?
Funeral director services:
- Transparency remedies
- Changes to the regulatory framework
- Establishment of a regulatory body
- CMA-led price regulation
- Establishment of sectoral regulator or price regulation
- Guidance to local authorities
- Changes to the planning system
Other possible remedies
The CMA would particularly welcome any specific evidence from respondents in support of their views.
In addition to the above, the CMA would also welcome evidence and views on the following matters:
- Quality of care of the deceased: we have received anecdotal evidence that there may be varying standards of care being applied by funeral directors and would like to understand how widespread such issues may be. We would therefore like to hear from people who have witnesses standards of care which they considered to be unacceptably low.
- Issues specific to religious groups that are not covered in this report: we have focused our work on the transactional aspects of funerals involving funeral directors and crematoria. We believe that the issues we have identified in relation to those specific aspects would essentially be similar across all faiths (to the extent that the way they organise funerals involves transactions with funeral directors or crematoria. We are keen to find out whether we may have overlooked any issue of relevance and will seek to engage actively with the representatives of the major faiths.
Our intention is to publish on the CMA’s website an aggregated and anonymised summary of submissions from individuals, although if you prefer, you can indicate that you would prefer for your response to be published in full.
We intend to publish all responses from business and other organisations on the CMA’s website, except those responses marked as confidential. Respondents may request that their response be kept confidential. If you would like your response to remain confidential, clearly mark it to that effect and include the reasons for confidentiality. Please restrict any confidential material to the appendices to your response.
We will redact, summarise or aggregate information in published reports where this is appropriate to ensure transparency whilst protecting legitimate consumer or business interests.’
We have a chance to make a change. Right now.
Do you want to improve things for bereaved people? Do you want to be a responsible citizen who stands up for what they know is right?
Then find ten minutes to tell the CMA what you think.
Price list from Dignity Branch 1 Price list from Dignity Branch 2
Their share price has slumped as a consequence, at one point today dropping to a five year low of £7.51, as opposed to the dizzy heights of May 2017 when they were up over £25 each. That was the month in which Mike McCollum CEO sold a big chunk of his remaining shares (91,667 to be exact). We wrote about that here.
It’s worth keeping an eye on Dignity’s director dealings. It’s good to see who’s doing well out of their hard work during their 3 year Transformation Programme. You can find details here.
It’s heart warming to see that according to Dignity’s press release last week in response to the CMA statement, ‘The Group has committed to making the funeral prices for all its branches available online by the end of Q1 2019’.
But, why is it taking so long?
Well, it might be because the current Dignity pricing model wouldn’t look very good online.
Above, we show two price lists obtained from two different Dignity branches in London in the last few weeks. The branches are within 2 miles of each other.
One branch is located in an area that could be described as middle class, affluent and not particularly culturally diverse. Let’s call this Branch 1.
The other (Branch 2) is in an area with a far greater mix of different ethnicities and cultures, with many people that are generally less affluent for sure than the other branch’s clientele.
What difference could this possibly make to the prices charged by Dignity for the same service, using the same staff and vehicles, the same central hub storage? Remember, these branches are just 2 miles away from each other.
We don’t know. But there is a difference. A difference of almost £1,500 on the prices listed for their ‘Full Service Funeral.
Literally, 15 minutes walk to Branch 1 could save you £1,445 for the same service from the same company.
In case you can’t see from the photos, here are some excerpts from the two branches’ price lists:
‘Our Service to You’
Branch 1 £1,095
Branch 2 £1,705
Our Service to the Person who has Died’
Branch 1 £ 795
Branch 2 £1,045
‘Your Appointed Funeral Director’
Branch 1 £460
Branch 2 £720
Branch 1 £395
Branch 2 £720
‘Additional services’ are priced differently, as are coffins – the ‘Chiltern’, ‘Purbeck’ and ‘Glastonbury’ are priced at £440, £750 and £1,250 in Branch 2.
The exact same coffins, with the exact same names coming from the exact same coffins probably on the same van to the branch just 2 miles away are priced at £290, 495 and £995. So £250+ more. On top of all the other higher prices for the lower income clients. One could almost think there had been a deliberate attempt to take advantage of cultural differences.
The difference in terminology and inference in the content of the two price lists is marked too.
Referring to embalming, the price list from Branch 1 has the Embalming price listed under ‘Frequent Considerations’, and says: ‘Embalming is a personal choice. In some circumstances we recommend the peace of mind that embalming brings. We will discuss this service with you’. That’s quite nice and unobtrusive. And it is priced at £250.
Branch 2’s blurb about embalming has far more prominence. Embalming is listed as the third price, before ‘Your Appointed Funeral Director, positioning implying it’s something that is just normal to require.
And it carries a little more of an ominous overtone ‘We will ensure that every available care is taken to delay the natural processes that occur after death. However, as members of the National Association of Funeral Directors we recommend the peace of mind that embalming brings. You will be advised on this and we will require your consent.’
The price for embalming at Branch 2? Just £101. It’s the only thing that we found cheaper looking at the two price lists. Everything else was more expensive in the diverse, less affluent location.
So sorting the labyrinthine, location-specific Dignity pricing out to get prices online looks like it’s going to be time consuming for the men in suits in HQ. How can they make this work?
Oh, and one last thing. Reading through Dignity’s self serving press release, we noticed the following quote from Mr McCollum, ““Dignity has committed to making its prices easily available for consumers by putting them online and believes that all operators should be required to follow suit to ensure greater transparency on pricing across the sector.”
Dignity as the leader that is taking a moral stance?
Excuse our French, but you have to be ****ing kidding Mr McCollum.
The CMA interim report on the funeral industry is taking time to digest across funeralworld.
It’s not surprising, it’s a chunky document. And it’s possibly proving quite indigestible for some, particularly the PR teams at Dignity, Co-op and Funeral partners.
The essential conclusion is – the funeral sector is not functioning well. Competition is not working effectively, price rises can’t be justified, and bereaved people are at risk of being exploited.
Finally, an official body is seeing what we have been pointing to and writing about for years.
And an official body with clout. The CMA proposes to make a Market Investigation Reference (MIR) into both the funeral market and the cremation sector.
This in turn could lead to recommendations to government to impose transparency requirements, changes to the regulatory framework regarding funeral directors or the establishment of a regulatory body, with the possibility of CMA-led price regulation.
The interim conclusion found that:
- The extreme vulnerability of customers has been a major factor in enabling suppliers to charge high prices in the sector for the past 15 years, rather than underlying cost pressures, and it appears to us that Dignity’s pricing policies have acted as the engine of these price rises, with others in the market appearing to follow its lead. This is true in relation to funeral director services, and, to a lesser extent, funeral services.
- In addition to large annual price increases, the supply of funeral services is characterised by large price differentials between suppliers, including within local areas. Such wide price differences appear hard to explain on the basis of cost, range, quality and brand differences between suppliers.
- The yearly high price rises implemented by the major suppliers have directly boosted their profit margins for a persistent period of time, The EBITDA margins of Dignity have been well above international benchmarks, while those of Co-op and Funeral Partners are at the higher end of them.
- When considering these profit margins alongside long-term policies of large price rises unrelated to underlying cost pressures, it seems clear to us that this is a market that is not functioning well, to the detriment of vulnerable consumers.
Andrea Coscelli, chief executive of the CMA, said: “People mourning the loss of a loved one are extremely vulnerable and at risk of being exploited. We need to make sure that they are protected at such an emotional time, and we’re very concerned about the substantial increases in funeral prices over the past decade.
“We now feel that the full powers of a market investigation are required to address the issues we have found. We also want to hear from people who have experienced poor practices in the sector so that we can take any action needed to fix these problems.
The two funeral directing trade associations don’t fare too well either, in particular the NAFD who nominates itself as ‘the Voice of the Profession’. Among their members they number Dignity, Co-operative Funeralcare and Funeral Partners Ltd. The three companies mentioned directly by name as profiting substantially from yearly high price rises are members of the NAFD.
“We recognise that trade associations bring a number of benefits to their members and may also be of benefit to consumers. However the evidence we have seen indicates that the two trade associations have fallen short of bringing about the level of transparency that is necessary to facilitate consumer choice. The evidence also indicates that the trade associations’ focus on supporting the commercial interest of its members may have been detrimental to competition, as illustrated by the approach taken to matters relating to online price transparency and the development of online comparison tools.”
So, all not so rosy for the Voice of the Profession, despite the NAFD PR statement in response which oddly seemed to have missed the point made by the CMA about their failings (it’s at point 4.101 on page 64).
This morning, BBC Radio 4 Sunday programme invited the current president of the NAFD to debate funeral costs with Louise Winter, founder of Poetic Endings (GFG Recommended funeral director and member of the Good Funeral Guild).
Listen here from 35 minutes 44 seconds.
It was an interesting few minutes.
We’d like to suggest that the NAFD explores the meaning of ‘debate’ as opposed to bulldozing through a discussion without drawing breath and requiring the other person to have to interrupt to make their point. Talking for over half of the allocated eight minutes is not good manners.
Here are a few excerpts:
From the NAFD representative in response to the suggestion of price capping:
“In some cultures, there is a necessity to spend money on a funeral as a mark of respect for the person who has died so you have to be very careful about making sweeping statements..”
Louise’s response: “That does not give the big corporates whatever price they want, well above the inflation rate every year, with their sole intention being to make as much money as possible for their shareholders. The people who are doing this are members of your organisation, your trade association, which supposedly exists to protect bereaved people and to help them have the funeral they want. It’s not. It’s just protecting the funeral directors and the costs that they are charging.”
NAFD response: “We protect bereaved people by giving them access to standards that can be guaranteed and a scheme of independent redress should something go wrong..”
And Louise cut in with “And outrageous prices, with no transparency, with only a third of your members putting their prices online”.
Worth a listen!
The Competitions and Markets Authority are proposing a major funerals probe after identifying serious concerns in the funeral sector.
It’s a long read – 133 pages – find the full interim report on the Funerals Market Study page here (scroll down for ‘Interim report and consultation’.
We publish this morning’s press release in full below:
‘Today’s interim report presents the issues the Competition and Markets Authority (CMA) has identified since launching a Market Study into the funerals sector 6 months ago.
Its initial work indicates problems with the market that have led to above inflation price rises for well over a decade – both for funeral director services and crematoria services. The scale of these price rises does not currently appear to be justified by cost increases or quality improvements.
Given the nature and significance of the issues the CMA has identified, it believes the full powers of a Market Investigation – carried out by an independent group of CMA panel members – are required. Issues include that:
- Today, people generally spend between £3,000 and £5,000 organising a funeral, and the price of the essential elements has increased by more than two-thirds in the last 10 years, almost 3 times the rate of inflation. Organising a funeral would now cost those on the lowest incomes nearly 40% of their annual outgoings, more than they spend on food, clothing and energy combined.
- Customers could save over £1,000 by looking at a range of choices in their local area. However, people organising a funeral are usually distressed and often not in a position to do this – making it easier for some funeral directors to charge higher prices. Prices are also often not available online, making it difficult to compare options.
- While some smaller funeral directors have sought to keep their prices low, other providers – the larger chains in particular – have implemented policies of consistently high year-on-year price increases. A number of these have now introduced lower cost funeral options, but this doesn’t go far enough to make up for years of above inflation price hikes. The CMA’s evidence also indicates most people who organise a funeral remain extremely vulnerable to exploitation and future rises in charges.
- Cremations account for 77% of funerals, yet there are limited choices for most people in their local area and fees charged by crematoria have increased by 84% on average in the past 10 years, more than 3 times the rate of inflation.
Andrea Coscelli, chief executive of the CMA, said:
“People mourning the loss of a loved one are extremely vulnerable and at risk of being exploited. We need to make sure that they are protected at such an emotional time, and we’re very concerned about the substantial increases in funeral prices over the past decade.
We now feel that the full powers of a market investigation are required to address the issues we have found. We also want to hear from people who have experienced poor practices in the sector, so that we can take any action needed to fix these problems.”
The CMA will now be consulting on the potential market investigation reference and welcomes any views on the issues identified in its report by 4 January 2019.
It would also like to hear from people involved in the industry and others, who may have observed instances of poor quality standards in the back-of-house facilities of funeral directors. Details on how to respond are available on the funerals market study page of the CMA website’
It makes interesting reading.
The research was commissioned from Research Works and Ipsos MORI as part of the attempt to understand the behaviour, experiences and decision-making of people who had recently engaged the services of a funeral director.
We read through all the findings and felt that there were some important points that should be highlighted. We quote directly from the research:
‘Levels of knowledge of the funerals marketplace were generally very low in this sample. Consumer knowledge about how to arrange a funeral was broad and relatively vague, but finding out more did not appeal, other than finding a funeral director to take on the task of making the arrangements when required.’
‘When they first started thinking about the funeral arrangements, most respondents thought that funerals were expensive.’
‘Broadly, the expense of funerals was accepted and not scrutinised at the point of need, as long as it fit with respondents’ ‘ballpark’ estimates. However, reflecting back on the funerals they organised, a small group of respondents questioned why funerals were so expensive and to what extent this cost was justified.’
‘Most respondents did not compare two or more funeral directors to help them decide which funeral director to use.’
‘… a large group of respondents felt under time pressure to organise the funeral as quickly as possible, minimising the time or will they had for comparing funeral directors. A large group also reported emotional distress as one of the factors for not shopping around, as they felt that would have added more burden at an already difficult time. The research also found that cultural sensitivities around funerals may make some uncomfortable to shop around based on price, as this may be perceived in negative terms (e.g. as putting a ‘price tag’ on the deceased or not caring enough for them).’
There’s lots more to read if you want a more detailed understanding of the findings of the research, but on the whole, it appears that:
Most people don’t want to think about arranging a funeral until they must.
Most people expect funerals to be expensive (well done life insurance companies and funeral plan providers, the media regurgitation of the astronomical figures attributed to the cost of dying and all those relentless adverts on day time TV seem to be working well…).
Most people don’t challenge the funeral cost that they are presented with.
Most people don’t compare two or more funeral directors before engaging one.
Most people are unaware that there can be considerable variations in the prices charged by different funeral directors.
Most people are unaware of ways in which funeral costs can be managed or reduced.
Many people feel pressurised to organise a funeral quickly.
All respondents wanted a local funeral director.
Most people would not change the funeral director once they had chosen them, even if problems arose in the service they received.
Pretty much what we at the GFG have been saying for years.
There’s little appetite among the public to think about funerals in detail, funerals are expected to be costly and the idea of shopping around between funeral directors is viewed as something rather not nice.
Bereaved people on the whole are uninformed, unwilling or unable to become informed for a multitude of reasons – and, even for those who want to be, unable to easily find the information that would enable them to be better informed.
We expect that when the CMA publishes its final report later this year, these findings will form part of the conclusions, and will add weight to the growing momentum towards some form of regulation of the funeral industry.
The conclusions of the CMA research are re-printed below:
“The research suggests that the funerals market does not seem to work as well as it might when:
Consumers lack experience of arranging funerals. Those with experience of arranging funerals are much more likely to scrutinise how many services they ask the funeral director to provide, and the cost of individual elements, as well as overall cost levels.
The funeral is being paid for from the deceased’s estate and they have specified their wishes. The person arranging the funeral may not perceive themselves as ‘owning’ the purchase, so their main concern is with ensuring the deceased’s wishes are followed and they are not as motivated to scrutinise the cost.
Consumers feel under pressure to move the deceased person’s body from the place where they have died (e.g. their home, care home) and subsequently make a decision about a funeral director very quickly, typically based on very little information about funeral directors available in an area.
Consumers attempt to find cost information online. There is a perceived lack of cost information available on funeral director websites and consumers appear unlikely to use other sources of information (such as price comparison websites).
Consumers are located in a rural environment, where the choice of local funeral director is assumed and prices are not discussed until after the event.”
Both funeral industry trade associations also published their responses to the research last week – the National Association of Funeral Directors welcomed the results of the research in a press release here. (It’s an impressive exercise in skimming over issues raised by the research, focusing approvingly instead on the points that people ‘overwhelmingly want to follow the wishes of the person who died’, and that funeral directors were chosen on ‘locality and previous experience’.)
A more considered and comprehensive response from the National Society of Allied and Independent Funeral Directors acknowledged some of the concerns raised by the findings and highlighted two issues in particular: the CMA’s claim that trade associations do not offer consumer protection and concerns over transparency of ownership.
Our recent blog post about Simplicity Cremations, the offshoot of Dignity Funerals, elicited this response from a disapproving reader:
‘This rattled me. “Dignity’s prices are too high and they are the cause of funeral poverty. Big bad dignity”. “Dignity lower their prices and offer a low cost cremation option. Big bad Dignity”.
Seems to me that someone has a bee in their bonnet and constantly looks for the negative.
Simplicity Cremations offers almost zero funeral director contact. The deceased is washed and dressed but that’s about it. A funeral director will arrange the Crem forms and dr’s fees but it stops there. There’s no face to face contact. Families arrange their own officiant, flowers, music and so on. The £600 odd pounds you’re quoting seems to only really cover the admin side of things, collecting and dressing the deceased, transport and a coffin. Seems fair enough.’
Let’s have a look at how the other arm of Dignity PLC (the owners of Simplicity Cremations) prices the services they offer clients.
Somehow, we don’t think that a figure of £600 odd pounds for the ‘admin side of things, collecting and dressing the deceased, transport and a coffin’ is considered ‘fair enough’ by the Dignity management when it comes to charging those families who prefer ‘face to face contact’. Or the bereaved people who do what most people in this country do, go into their local funeral director rather than going online to make arrangements.
Dignity Funerals Ltd is the company which, at the last count, has 831 high street branches (all trading under their original names) It is the company that conducted 39,700 funerals in the first six months of this year. Or an estimated 12.1% of all the funerals carried out in Britain.
And apparently, Dignity’s methods of pricing their high-street-facilitated funerals are remarkably different from those used for their on-line business.
You will be faced with a bill of significantly more than ‘£600 odd pounds’ for ‘the admin side of things, collecting and dressing the deceased, transport and a coffin’ if you walk into one of their high-street branches.
That ‘face to face contact’ seems to bump up the prices by several thousand pounds.
We collected some current price lists from Dignity branches in the London area and the South East and North of England.
Here’s what we found.
The prices shown are for Dignity’s ‘Full Service Funeral’ – i.e. a funeral on a day and time that you choose (rather than them telling you when you can have it), with a choice of coffin and the option of having the person dressed in their own clothes (rather than a ‘suitable basic gown’), the option to spend time with them at the funeral home, assistance in organising floral tributes, obituaries, service stationery and donations, and the freedom to add limousines if you want.
Or, in other words, what most people would expect a funeral director to offer.
|London||South East England||North England|
|‘Our Service to You’*||£1,705*||£1,655*||£1,470*|
|‘Our Service to the Person who has Died’*||£1,045*||£1,020*||£1,015*|
|‘Your Appointed Funeral Director’*||£ 720*||£ 700*||£ 725*|
|‘Our Hearses’*||£ 720*||£ 720*||£ 620*|
|‘Our Limousines’||£ 252 (from)||£ 252 (from)||£ 175|
|‘Traditional’ coffin range||£ 150* – £1,250||£ 150* – £1250||£ 150* – £1,250|
|Cardboard coffin||£ 660||£ 660||£ 660|
If your eyes are glazing over at all the figures, we’ve added them up for you below. And we offer some prices from GFG Recommended Funeral Directors for comparison. (We hadn’t intended to do so, as this post is meant to be about the Dignity prices charged by different arms of the business for very similar services, but we thought comparisons with the prices of some independently owned businesses might be informative.)
We included the components with stars against them in the results table above, i.e. the charge for meeting and making the funeral arrangements, the charge for collecting and caring for the person who died, the peculiar additional charge for ‘Your Appointed Funeral Director’ (we’ve never come across a separate fee for having a funeral director appointed to you before?), and the charge for a hearse. We used the lowest priced coffin in the Dignity range, just to keep it simple, although we think that probably very few families pick the £150 option when presented with the coffin brochure, and we didn’t include embalming, even though the Dignity blurb states ‘…. as members of the National Association of Funeral Directors we recommend the peace of mind that embalming brings.’
We then checked the prices for the same or comparable service listed by independent funeral directors in the same parts of the country on our Recommended list.
Oh, and remember, these are figures for just the funeral director fees.
Cremation or burial costs, medical certificates if required (in England and Wales), and the fee for a minister or officiant will be in addition to the figures shown. Also, flowers, orders of service, limousines, placing of obituaries or other optional extras will all be extra costs. It would probably be wise to budget at least a further £1,000.
Here we go:
If you are in the London area, the Dignity price we were given is £4,340
For comparable services, Leverton & Sons would charge £2,310
From Compassionate Funerals, comparable services would cost £2,159
If you are in South East England, the Dignity price we were given is £4,095
Comparable funeral director services from Albany Funerals would cost £2,245
From Holly’s Funerals, comparable services would cost £2,131
If you are in the North of England,the Dignity price we were given is £3,980
Comparable funeral director services from Barringtons Independent Funeral Services would cost £2,150 (and include a limousine)
From Saint and Forster Funeral Directors, comparable services would cost £1,690)
Now, we know that there’s the fabled ‘face to face contact’ involved with all of the prices above. And a hearse. And visits to the chapel of rest if you want them. And a funeral director too. And staff to carry a coffin.
But what we are trying to illustrate is the VAST chasm between the prices charged for the‘admin side of things, collecting and dressing the deceased, transport and a coffin’ by the same company.
Just as a reminder, Dignity’s Simplicity Cremations ‘Attended Funeral’ costs £1,895 including cremation and doctors’ fees.
The lowest Dignity Funerals Full Service Funeral price we found cost £3,980 WITHOUT cremation and doctors’ fees.
That ‘face to face contact’, flexibility in arrangements, visits to the person who died and providing a hearse and staff at the funeral appears to add something in the region of three thousand pounds to the price.
(Now, in case anyone’s interested, the most recent Dignity Investor Presentation reports £120,100,000 revenue from their funeral services in the first 26 weeks of 2018, with Underlying Operating Profit of £42,100,000
Forty two million pounds. In six months.
The Investor Presentation is downloadable here.)
We’re sure that Dignity will be at pains to tell us that they offer a Simple Funeral for £1,995 plus third party costs.
We know this.
We also know that if you opt for a Dignity Simple Funeral:
You will not be able to decide the date and time of the funeral, they will choose it.
You will not be able to choose a different coffin.
The person who died will not be dressed in their own clothes.
You will not be able to add a limousine if you want one.
There will not be a funeral procession.
Payment of third party costs will be required at the time of making the arrangements, with the balance due 48 hours before the funeral.
See ‘Some important points about the Simple Funeral‘ here.
This restricted service is possibly not what most people would expect in return for paying a funeral director almost £2,000 for their service. Even with the face to face contact (and ‘motorised hearse’) you get with Dignity’s Simple Funeral.
You could ditch the face to face contact and the hearse, pick the day and time of your choice, have a similar coffin and save yourself around a thousand pounds (which you’d need to find for the third party costs on top of the Simple Funeral fee) by opting for a Simplicity Cremations Attended Funeral with that all-in price of £1,895.
Though this probably won’t be offered to you if you are a bereaved person who goes into a high street branch of Dignity. It’s only available online. From a company with a different name.
(Or, you could choose to use an independent funeral director instead. Ideally, one that we recommend. Look again at the prices for full, unrestricted funeral services from independent companies above.)
But to go back to the original point of this post, and to directly address the person who objects to our opinion and thinks we constantly look for the negative:
No, on balance, and with the greatest of respect, dear disgruntled reader, we don’t think it’s ‘fair enough’.
We don’t think it’s fair at all for a funeral provider to be subsidising costs for some bereaved people and charging much, much higher prices, for remarkably similar services, to other bereaved people.
Which is what appears to be happening here.
Incidentally, if you’ve read this far, you might want to have a browse through comments from some long-suffering Dignity PLC shareholders here and here, – many have seen the value of their shares crash since last year and are nervously watching the so-called ‘price war’ between Dignity and Co-operative Funeralcare, wondering how this will impact on the value of their holdings.
Some of the more optimistic appear to be hopeful that, under the lead of Paul Turner, Dignity’s new ‘Transformation Director’, the company’s performance will pick up, and the value of their holdings will start heading up from today’s level (around £10.50 a share) back towards the giddy heights of £24.60 a share just last November.
The Dignity transition programme is expected to be largely completed over a three year time frame according to that Investor Presentation. So possibly a scenario for ‘Hold’. (Or ‘Hope’.) Time will tell.
Meanwhile, according to some former and current Dignity employees, there’s a rather gloomier picture on the inside, read reviews here.
Now, where’s that bonnet?
We want to make it very clear to anyone who might be unaware – the Good Funeral Guide CIC had nothing to do with the recent announcement of Dignity PLC’s sidekick, Simplicity Cremations as ‘The Best Direct Cremation Provider 2018’ with a ‘Good Funeral Award’.
Having been co-organiser since they began, the Good Funeral Guide is no longer involved in any way with the Good Funeral Awards, we parted company with Brian Jenner amicably last year.
We have no knowledge or understanding of the deliberations involved in arriving at a decision to name a Dignity offshoot the best in the country.
Rest assured, had we still been involved in the Good Funeral Awards, we would have strongly resisted handing such a valuable accolade to the marketing people at Dignity to emblazon on their website and include in their press releases.
It simply wouldn’t have happened.
Our record shows our feelings about Dignity PLC. We have written almost 50 blog posts over the years, making our thoughts very clear.
Today we feel it is essential to write another.
Yesterday’s announcement that the online-only, Dignity owned, direct cremation service Simplicity Cremations is now offering clients an attended ceremony at a Dignity owned crematorium for an all inclusive price of £1,895 references the fact that Simplicity Cremations was recognised as Best Direct Cremation Provider at this year’s Good Funeral Awards.
We are concerned that this might be misconstrued as an endorsement of some kind by the Good Funeral Guide CIC by anyone who missed the announcements of our withdrawal from the organising of the awards.
It is not.
We do not endorse Dignity’s calculated attempt to step in as a solution to the issue of funeral poverty by offering their services at a rock bottom price.
We consider funeral poverty to have been very much contributed to by the bloated price increases charged year on year by Dignity PLC and other funeral providers following their business model.
We do not endorse the fact that, in areas where Dignity own a crematorium, local people looking for a low cost funeral will now find that the best price for a funeral service is offered by a company also owned by Dignity.
Meanwhile, families from the same areas preferring to use a local independent funeral director to assist them will be charged among the highest fees for cremation*, making the overall cost to these families for similar services disproportionally higher.
How is this fair to bereaved families?
*(Across the UK, the highest cremation fees are charged by Dignity crematoria. See the 2016 report from Beyond here, showing 9 out of the 10 highest priced UK crematoria are Dignity owned.)
How is this a level playing field for small independent funeral directors? For small business owners trying to compete in a market where the cremation fee charged to their clients appears to be vastly higher than that charged by Dignity to clients choosing an ‘Attended Funeral’ from their wholly-owned Simplicity Cremations service?
Here’s an example.
If you live in the Oxford area and want a funeral on a day and time of your choice at Oxford Crematorium (owned by Dignity), and you use a non-Dignity owned funeral director to help you, the cremation fee you will be charged is £1,070 (plus, potentially, doctors’ fees of £164).
If you instead choose the Dignity owned Simplicity Cremations, the full price you will be asked for for the entire funeral service, including cremation fee and doctors fees is £1,895. You can choose the date and time to suit you.
This means that Simplicity Cremations (aka Dignity PLC) is willing to provide all the remaining funeral directing services, including the collection of the person who died, their care, dressing them and taking them to the crematorium on a day and at a time of your choice for just £661.
How is this possible? While there are obviously savings to be made by dealing with bereaved families by phone rather than in person, the remaining services surely come at a greater cost than £661? The only way that we can think that this can make financial sense is that the cremation fee element is not £1,070 for clients engaging Simplicity Cremations rather than another funeral director.
Is this the case? If so, this is not acceptable.
We do not endorse Dignity crematoria offering differential prices to clients of Dignity funeral services, (whether trading under the online Simplicity Cremations name or the locally named high street Dignity branches).
We do not endorse bereaved families being unfairly penalised for choosing a funeral director that is not also owned by the owner of a crematorium in their locality.
We will be writing to the Competition and Markets Authority** to enquire how this situation sits with them.
We suggest anyone who shares our concerns does the same.
**The Competition and Markets Authority ‘promotes competition for the benefit of consumers, both within and outside the UK. Our aim is to make markets work well for consumers, businesses and the economy.’
Yesterday, the Intergovernmental Panel on Climate Change published their Special Report on Global Warming of 1.5’C
As policy makers and news editors across the world digested the implications of the findings and the stark warning that doing nothing is not an option if we want our children and grandchildren to live in a world with coral reefs and sea ice, at GFG Towers this got us wondering how we could do our bit (apart from cutting back on the Kobe beef suppers and trips to the corner shop in the Bentley).
And we thought perhaps exploring the impact that our western choices of funeral styles and goods have on the environment might be a good start.
Here are some facts.
In 2017, 607,037 people died in the United Kingdom and of these, 467,748 were cremated.
This represents 77.05% of all deaths (in comparison with 1960, when 204,019 people or just 34% of all those who died were cremated)*
*Figures obtained from the Cremation Society of Great Britain Pharos International UK Cremation Statistics issue.
Now for the more intricate bit. The effect of the funeral choices for these 607,037 people on our environment.
This is surprisingly hard to find accurate, up to date and unbiased information about. There are lots of quoted figures for the environmental impact of different choices, but it’s extraordinarily hard to substantiate any of them. It also makes sense to try and find out where the figures originally came from, and consequently, who paid for the research. There are very vested interests in this area.
All this following-of-links is time consuming and frustrating, so we’ve just cited the sources of the information below. And we gave up trying to establish the carbon cost of funerals, it would just be guesswork on minimal accurate information, and a variable way of measuring. But suffice it to say that there is a cost. A significant one. Funerals require a lot of energy to create the way we currently do them. And the need to dispose of our dead isn’t something that is going to go away.
Currently, more than three quarters of people who die in the UK are cremated. So we’ve focused on this.
Cremation – or the incineration of the bodies of those who have died (although incineration is frowned on as a term by the sector, it has ugly historical / industrial connotations) – is clearly not a good thing for the environment.
We’ll try to explain why, but a warning – it quickly gets complicated and the sentences get longer and longer.
The average weight of a middle aged British adult is 70kg for a woman, 83.6kg for a man. Source: ONS
The average weight of the cremated remains handed back to a family after the cremation has taken place is roughly 3.5% of the weight of the person who died. Source: Cremation Institute
Approximately 60% of the human body weight is water – Source: US Geological Survey’s Water Science School
So, by our amateur calculations, after allowing for the percentages of weight of water content and the ‘cremains’ returned following cremation, there’s a conservative third of a person – or around 20kg – that has disappeared in the combustion process.
Is that right? If so, even allowing for the fancy filtration equipment capturing the nastier elements en route, that’s a whole lot of potential emissions going through the flues and up the crematorium chimney stack. Per person. Multiplied by 467,748 in 2017.
DEFRA offered some Statutory Guidance for Crematoria in 2012 – below is an extract from those guidelines, listing some of the potential pollutants from the cremation process and the techniques to control them:
Techniques to control emissions from contained sources
Particulate matter in unabated cremators is controlled by good combustion and by gas flows that do not carry particles out of the cremator. Mercury abatement further lessens emissions of particulate matter.
Hydrogen chloride mostly arises from the salt content of bodies. Chlorine should be avoided by careful control of coffin materials, contents, shrouds, clothing and items other than the body itself. Condensation is prevented by dilution and preheating stacks. Mercury abatement further lessens emissions of hydrogen chloride.
Mercury is highly volatile and therefore almost exclusively passes into the flue-gas stream. Mercury is only partially removed with particulate matter. The rest remains in the flue gases as volatile compounds. Where activated carbon is used as part of the abatement technique, operators should be aware of potential health and safety risks arising from spontaneous combustion.
Volatile organic compounds
Volatile organic compounds are controlled by good combustion.
Good combustion and low particulate matter emissions minimise the emission of PCDD/F (polychlorinated dibenzo-p-dioxins and polychlorinated dibenzofurans often referred to as ‘dioxins and furans‟or even just „dioxins‟). Mercury abatement further lessens emissions of dioxins.
Nitrogen oxides arising from coffins might be lessened by switching from coffins made using board made from wood and nitrogen-containing resins. However plain wood is considered too expensive to be required as Best Available Technique (BAT). Cardboard caskets also contain nitrogen in the wet strength additives. Nitrogen is always present in the body. Thermal NOx is minimal due to the secondary chamber temperature and because combustion is staged over primary and secondary chambers.
Carbon monoxide is a pollutant but is also the prime indicator of incomplete combustion that would emit un-burnt hydrocarbons, PAH and PCDD/F, which are much more difficult to monitor. Abatement of carbon monoxide is not BAT but good combustion minimises emissions.
Carbon dioxide emissions are minimised by cremator design and operation. Simple recording of gas consumption and conversion into CO2 equivalent emissions enables monitoring of emissions. Although not BAT, gas meters allow measurement of gas consumption, and comparison with other sites, including the potential for cost savings. Advances in combustion control, allied with short period carbon monoxide monitoring to monitor good combustion, may allow significant reduction in carbon dioxide emissions for next generation cremator designs.
Hmm. Not quite sure what that all means. But it’s good to know that emissions are being monitored.
Let’s just pick up the mercury point. According to this 2015 Reuters article, the average cremation releases 2 – 4 grams of mercury.
Now, here in the UK, DEFRA got involved back in 2005, and in conjunction with the Implementation of OSPAR Recommendation 2003/4 on Controlling the Dispersal of Mercury from Crematoria Second Overview assessment, required 50% of all cremations at existing crematoria to be subject to mercury abatement by the end of December 2012, with all new crematoria being required to fit mercury abatement. See here.
Because of the difficulties installing abatement equipment in some crematoria, or problems funding the costs involved, an ingenious burden sharing scheme was introduced by the sector, enabling crematoria that installed mercury abatement equipment to derive income by trading 50% of the cremations they undertake. This meant that other crematoria (those without the abatement equipment) could pay for these ‘tradable mercury abated cremations’ in order to become compliant.
This system continues, and despite the UK being a contracting party to the OSPAR Hazardous Substances Strategy that requires 100% mercury abatement by 2020, we haven’t been able to find out with certainty that further progress is being made to reach this target. In the meantime, the level of 50% of cremations having their mercury abated is, apparently, satisfactory.
According to the 2016 Implementation of OSPAR Recommendation 2003/4 on Controlling the Dispersal of Mercury from Crematoria Second Overview assessment the UK states that ‘The data received from Local Authorities recorded in 2013 for England and Wales showed there were more than 330,000 cremations with around 75% of those recorded abated.’
If we apply that same figure to last year’s cremation numbers, and if we use the figure cited by the UK in their response to OSPAR of 0.9g mercury emitted per person cremated without mercury abatement technology (and that’s a very conservative figure – remember that Reuter’s article suggesting the average cremation releases between 2 and 4g of mercury?) then 25% of the 467,748 cremations in the UK in 2017 would have generated at least 105 kilograms of mercury into the atmosphere, drifting towards the North East Atlantic to embark on the process of bioaccumulation into our food chain.
The US Environmental Protection Agency recommends a maximum daily consumption of a daily intake of 0.1 micrograms per kilogram of body weight, or, in other words, for an average adult, 8 micrograms per day.
(If you’re not keeping up at the back, that 105 kg of mercury created by last year’s cremations in the UK = 105,000,000,000 micrograms. Or, if you prefer, a hundred and five thousand million micrograms)
NB according to the same aforementioned Reuters article, some 200,000 babies are born each year in the EU with mercury levels harmful to their development.
We’ll just leave that point there.
We’ve got a bit sidetracked by the numbers and the intricacies of potential cremation emissions (whether financially offset or not) so apologies for that.
And we haven’t even touched on the cost of the energy involved in firing up and running all the cremators in the UK’s crematoria, let alone the environmental costs involved in the manufacture of all that cremation equipment or the buildings it is housed in. (There are over 290 crematoria in the UK, with more going through the planning process as we write, and pretty much all of them will have several cremators in use.)
We also haven’t got around to the impact of all those nice varnishes, plastics and adhesives being burned throughout the country every day, nor the energy involved in manufacturing and delivering all those coffins. Or all the floral tributes. Remember, there were 467,748 cremations in 2017. That’s a lot of coffin sprays.
Back in 2010, the Burial and Cremation Information Trust created a comprehensive Carbon Questionnaire for crematoria – a document which clearly took a huge amount of time and input to put together.
Unfortunately, we’re not sure which, if any, crematoria have taken the time to complete it. We’ve looked, but we couldn’t find any publications from crematoria citing their work to reduce their environmental impact. There certainly doesn’t appear to be anything in the public domain indicating that there has been an industry wide initiative to establish a base line of the environmental impact that cremating our dead is having.This, we think, is a real shame. We would like to know this.
Anyway, back to the broader subject of environmental decision making when it comes to funerals.
It’s apparent that cremation isn’t ticking many environmental or sustainable boxes. Or any, actually. But unfortunately, choosing a traditional burial also comes with an environmental price tag if you want a traditional burial in a double or triple depth grave and a memorial made from imported stone.
No, if you’re really concerned about the environment, and you want your funeral to have as little detrimental impact on our planet as possible, choosing a natural burial in a site local to you that is well managed according to ecological principles is the only option.
A natural burial comprises of burial in a shallow grave, in a biodegradable coffin or shroud, and with no permanent memorial – see here.
And if you want to think about the bigger picture, below are the elements of any funeral where you can make a sustainable choice rather than one that comes at an environmental cost as well as a financial one:
Embalming.Not good for the environment. Even if eco-friendly embalming fluids are used, the process still requires flushing litres of blood into our sewage system. Good funeral directors can care for dead people without having them embalmed.
The type of coffin. Made from mahogany or other rainforest timber? Steel American casket? Not good for the environment. The typical MDF (chipboard) veneered standard mid-price coffin isn’t much better. Ask for coffins that are locally made, from FSC certified, sustainably sourced wood or willow, wicker or papier mache. Or choose a linen or woollen shroud.
Flowers. Plastic frames for letters spelling out words or names? Oasis? Imported flowers that have already travelled thousands of air miles? Not good for the environment. Pick flowers from your garden, or donate to a charity instead.
Travelling to the ceremony. Big gas guzzling hearse and following limousine? Lots of people travelling in cars from a distance? Not good for the environment. Ask for an eco-hearse and car share instead.
Choosing a memorial. That lovely granite tablet that looks so shiny? The pure white marble headstone? Not good for the environment.
The maintenance of the grounds. Manicured lawns, bedding plants and tidy rose gardens in crematoria grounds, intensively mown and weeded cemeteries – not good for the environment. Choose somewhere with conservation areas and a policy for encouraging biodiversity.
- The indomitable Ken West MBE published an article a while back entitled ‘How Green is My Funeral’ with a handy calculator of the environmental impact of the various choices involved. You have to turn your head 90’ to read it unless you print it out, but it’s well worth the effort.
And our friends at Leedam Natural Heritage have also produced a table showing the different options for consideration by the environmentally conscious when deciding on which type of funeral they want.
We’d love to know what you think about all this.
As the IPCC is urging us to pay attention to the environmental impact of all aspects of our lives, should we not also be considering the environmental impact of our deaths?
The GFG is delighted to have been invited to join representatives of various organisations on a working group to look at the role of funeral celebrants.
We’ve called this working group the Funeral Celebrancy Council and last week the FCC spoke to hundreds of celebrants at the second National Celebrant Convention about the work we’ve been doing so far.
More information about the FCC is below, but for now, we’d like to ask for your help if you are a celebrant who carries out funeral ceremonies.
One of the aims of the FCC is to obtain some realistic statistics. There is very little data about funeral celebrancy, so we are running a survey to try and gather accurate information.
The link can be found here – https://www.surveymonkey.co.uk/r/FuneralCelebrancySurvey2018 and it takes less than 10 minutes to complete.
You don’t need to give your name or identify yourself in any way, but your input will help us build a picture of what is happening out there in funeralworld.
Thanks very much in advance!
About the Funeral Celebrancy Council
The Association of Independent Celebrants