Abstract

"U.K. Regulatory Frameworks for Prepaid Funerals: Influence on Market Development and Product Delivery since the 1980s "

Sophia Wigglesworth, University of York (wigglesworthsophia@gmail.com)

Though various forms of pre-paid funeral plans have been around since at least the nineteenth century, there has been a notable increase in their popularity across the UK since the 1980s. For consumers, the main appeal of these schemes is that they allow individuals to pay in advance for a funeral at a fixed cost, thereby saving others from having to cover these expenses, hedging against inflation, and reducing the emotional burden on loved ones. However, this important social phenomenon remains under-investigated within academia.

Since its inception, the market has been largely unregulated, despite several reports calling for regulation. These reports found multiple failures that led to the collapse of several firms since the 1980s, resulting in financial loss for thousands of customers. The most recent investigation by the Competition and Markets Authority resulted in regulation by the Financial Conduct Authority. The investigation revealed several market failures, including mismanagement of trusts, hard selling to potentially vulnerable customers, and a lack of transparency in the market (FCA 2021). Several firms closed when the market became regulated, such as Safe Hands Plans Ltd., which faced criminal proceedings after leaving approximately 46,000 people with neither money nor plans (SFO 2023).