Brits who opt for a simple burial service will now pay £1,250 more than five years ago, a new study claims.

The average burial now comes in at £3,307, a 61 per cent increase on 2000, due to a shortage of burial plots and more expensive coffins on the market, according to insurance company American Life.

Cremations have also seen a 61 per cent increase to £1,954.

But prices vary dramatically across the country. One burial company in Southgate, London, quoted £6,140 compared to one in Manchester which came in at £1,797.

The cheapest cremation was found to be £1,371 from a funeral director in Ipswich whilst the most expensive was £3,200 in Luton.

The survey also found that 70 per cent of funeral directors excluded the cost of a grave from their burial quote whilst one in three did not factor in the cost of the cremation itself.

Rachel Hucknall, the director of the Natural Death Centre, advises that people shop around to get the best price and ensure that written quotes are itemised to avoid hidden costs.

But Dominic Maguire, a spokesman for the National Association of Funeral Directors, said tighter environmental legislation had necessitated upgrades in equipment and premises and this in turn had pushed prices up.

He told the Scotsman: "People go back to the same funeral directors that their family has always used because they get a good service. You should be able to get a basic funeral service anywhere in the UK for around £2,000, or not much more in London."