Prices have jumped by an inflation-busting of around five per cent over the last year, piling pressure on the bereaved, funeral price comparison site Funeralbooker found.
The cost of cremation is now at a record high average of £753, while burial prices are a typical £1,792.
There are also huge difference in the costs across the country, meaning families can end up paying tens of thousands of pounds more for a burial depending on their location.
There is up to £500 difference for cremation as costs are a postcode lottery, Funeralbooker said.
Beckenham, Crawley, Leatherhead, Nuneaton, Moray, Dundee, Oxford, Northampton and Chichester are the most expensive places to be cremated in Britain.
Seven in 10 people are now cremated, but 221 of the 228 UK crematoria have hiked costs above inflation, according to the research.
London takes the top slot for burial fees, averaging £3,806. The capital is also home to the cemetery charging the highest fee in the UK – Highgate Cemetery, which charges an eye-watering £18,325.
James Dunn, co-founder of Funeralbooker, said: “These price hikes are the ultimate stealth tax, going completely unnoticed by families until their moment of need. But with such significant price differences now appearing across the UK, many will be questioning whether these fees genuinely reflect the service they are getting or are simply down to opportunistic greed.
“Cremation is the cheapest option, but affordability is of growing concern.
“And, with some privately-owned crematoria close to breaking the £1,000 barrier, the danger is that local councils will raise their fees to follow suit.
“If these costs continue to climb, families will struggle and we will see funerals causing even greater hardship and stress.”