Funeral directors had a tough time dealing with the increased number of deaths caused by Covid-19 that nobody was prepared to deal with in 2020. At one point in time last year, multiple funeral homes in the UK were simultaneously facing insurmountable odds as the numbers kept piling up. A genuine chance of getting infected by the virus, combined with global panic were all too much to deal with for plenty of smaller funeral homes. They had to shut their doors, despite such outcomes being in complete contrast to what most would have believed earlier.
How the Lockdowns Helped
The lockdowns in the UK worked exceptionally well as far as controlling death rates were concerned, as the nation successfully flattened the death curve almost completely by the end of June. It wasn’t until October 2020 that the second wave of deaths started to climb up, and although it was not as steep as the initial wave, this one never went flat in 2020.
The three months of hiatus did, however, provide funeral homes the time they needed to prepare for future scenarios. As a result, when death rates began to resurge in the UK again, most funeral homes which survived the initial rush were much better prepared to handle the second wave of deaths.
The Next Big Wave of Death
Death rates once again began to surge and went past all previous records within the second week of January, 2021. On January 20, 2021, 1,820 people died from covid, which is the greatest number of lives which covid has claimed in the UK on a single day to date. A resulting boom in the grim sector was handled by the existing funeral homes better during the third wave, and funeral homes became a lucrative field to invest in for many. Cremation soon became the most preferable option as it eliminated some of the expenses, negated the need to find new burial ground, and ensured that the virus could be better eliminated.
Why the FCA Stepped In
The FCA decided to step in because multiple grieving parties complained about how some of the most reputed funeral homes across the UK were profiting immorally from the misfortune of others. Apparently, the accused businesses were profiteering from the global pandemic and deaths in general, by selling prepaid funeral plans which:
- Cost a lot more than they should if the grieving party decided to pay their dues in monthly instalments
- Suddenly became more expensive, while reducing the privileges promised within the same prepaid funeral plan previously
After reviewing enough complaints, the Financial Conduct Authority is now in the process of bringing all funeral homes under their regulations.
What It Means for Present and Upcoming Funeral Homes in the UK
A tentative deadline has been set for July 2022, by which all funeral homes in the UK are expected to be registered with the FCA. Post the mandatory FCA authorisation, funeral homes and their prepaid plans will need to be in complete compliance with the new directives. A visit to the Scott Robert Compliance Consultation website should provide additional information necessary to successfully apply for a FCA authorisation. It should be noted that this is a true first-time scenario for the entire British funeral business, which means that the compliance firm’s advice could be invaluable for ensuring a quick, hassle-free transition.
There is a window for providing inputs right now, as the FCA has published their official consultation paper now. Mostly though, the page acts as a clear indicator of what to expect next year, once the regulatory body begins to enforce the compliance laws in full effect.
