Independent Funeral Director research report 2025

Against this backdrop of fewer firms selling, plan sales show welcome signs of recovery. After a flat year in 2024 and sharp decline in 2023, more funeral directors are now reporting increases than decreases in plan volumes, with many saying sales are broadly unchanged but at least stable. Growth is generally modest but marks a clear improvement, suggesting confidence is returning after the disruption of early regulation. Direct cremation plan sales among funeral directors have held steady at just over one in five plans sold, following the sharp shift between 2023 and 2024.

This contrasts with the significantly higher share of direct cremation plans in the wider market and may indicate that independents are becoming more effective at converting enquiries into more than direct cremation.

However, satisfaction with plan providers has fallen again, reaching its lowest point in the five years of this study. Scores are lower across every aspect of service. The most significant gaps appear around claims redemption values, relationship management and telephone support. While the decline partly reflects the large number of respondents from one firm in the sample, the broad downward trend suggests persistent adjustment pressures experienced and perhaps ‘compliance fatigue’.

New data for this year is evidence of the incidence of plan shortfalls, where plan proceeds do not cover the funeral services offered. Shortfalls have implications for customer outcomes, the economics of funeral planning and the regulatory scrutiny that plan providers may face. They are also likely to influence funeral directors’ perceptions of which providers offer them best value.

Although switching providers remains relatively rare in practice, a meaningful minority continue to consider a change. Administration fees, FCA-driven demands on time, dissatisfaction with redemption values and lack of regular contact are the most common reasons. While many funeral directors remain loyal to their current provider, there is clearly appetite for alternatives, especially among firms feeling operational or commercial pressure.

Direct cremation ‘at-need’ continues to grow gradually, now accounting for c15% of all funerals performed by respondents. For the first time we have also captured how these funerals are arranged. While in-branch arrangements dominate, a meaningful proportion are now organised by telephone or online. This is clear evidence at-need direct cremation is moving beyond branch-only distribution. Funeral directors say families’ preference for in-person contact remains the main barrier to expanding remote arrangements, followed by the cost and complexity of digital platforms. Even so changing consumer ‘channel’ preference is evident.

More broadly, funeral directors continue to feel pressure from rising costs, the decline of traditional funerals and ongoing compliance obligations. Yet overall confidence appears surprisingly resilient. Many firms plan to respond through staff training, facilities investment, technology adoption or expanding the services they offer. A minority are considering selling or exiting the sector, but most remain committed to adapting. Support for wider regulation of the funeral sector is consistently high, and many see it as beneficial for future standards and reputation.

This year’s findings reflect a market that is stabilising in some areas while still grappling with value, service and regulatory challenges. Despite ongoing strain – particularly around redemption values and shortfalls – funeral directors continue to evolve their approach and respond to changing consumer expectations, even as the aftershocks of regulation remain part of daily business life, and even ‘welcome” the prospect for imminent further regulation – this time for the sector as a whole.