The UK’s family-run funeral directors have launched a significant fightback against national online providers as competition over modern funeral services intensifies, according to new research.

The latest What is the Real Average Cost of a Funeral? report from Funeral Solution Expert (FSE), produced in partnership with the National Society of Allied and Independent Funeral Directors (SAIF), shows that the price of direct cremation services offered by independents fell by 0.6 percent during the past year, while the at-need cost from larger specialist providers rose by 12.5 percent.

In real terms, the average cost of a direct cremation arranged by an independent funeral director now stands at £1,873. By comparison, market leader Pure Cremation’s at-need service is £1,495 – a price difference of £378.

Interestingly, while its at-need service is cheaper, Pure Cremation’s prepaid funeral plan (pre-need) now costs £1,995, having risen 25 percent over the past three years. This is higher than many prepaid direct cremation plans offered by local independent funeral directors.

With direct cremations now accounting for 15.3 percent of all UK funerals, up from 12 percent in 2024, the report confirms this type of service is a permanent feature of the market.

Commenting on the figures, which are based on a survey of more than 200 funeral directors and consumer research with 6,000 adults in the UK, SAIF Immediate Past President, Declan Maguire 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. Conversely, national operators take a “price starting from” approach which omits add-ons. 

“However, price reality is beginning to kick in, with large businesses adjusting prices upwards to reflect the cost overheads that come with providing funerals. We are likely to see this price gap narrow even further in the coming years.”

FSE, a specialist consultancy to the funeral profession, also found that most bereaved families would prefer for their loved one to be cared for locally and not travel beyond a 15-mile radius.  

On top of this, 80 percent of consumers said they would rather have a funeral director arrange their funeral than a new entrant business without experience, and 49 percent would like to use a local independent provider. 

In terms of the average cost of a funeral, FSE discovered that the typical price of a funeral from an independent funeral director is £4,108, a 4.8 percent increase on last year’s £3,921. But this is still lower than SunLife’s Cost of Dying Report average funeral price of £4,285, claimed in January 2025.

It is SAIF’s view that SunLife’s report no longer represents the average cost of a funeral, as it simply produces an average cost of a fusion of traditional burials and cremations – an increasingly outdated formula.  

Consequently, prospective over 50s life insurance buyers are at risk of purchasing more cover than they need. For example, people whose preference is a direct cremation funeral do not need to buy a £4,000 insurance policy. 

SAIF CEO Terry Tennens said: “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. 

“The funeral profession worked hard to comply with price transparency measures imposed by the Competition and Markets Authority four years ago, so it’s imperative that bereaved people are not confused by misleading research, which might only add to their distress.”

Read the full report here.