The council strenuously denied the claim.
It had earlier told the BBC it was introducing the changes “because there is a need for it” and the extra costs reflected “the increased costs incurred in providing them, including disposing of the additional soil”.
“Many other local councils, including Birmingham and Walsall, charge higher fees for larger graves”, a spokesperson had said, adding that costs for wider burial plots in Wolverhampton were similar or cheaper than in neighbouring authorities.
However, on Thursday afternoon the local authority’s position changed, saying that “no formal decision was ever taken on plans to charge more for larger burial plots”.
It said extra charges were a “common practice taken by councils around the country where higher charges cover the costs of providing a larger plot”.
“However, while under consideration, we have decided not to proceed with the plans.”
The National Society of Allied and Independent Funeral Directors surveyed its members to ask if their local councils charged more for wider plots.
Of the 165 who replied, a quarter said yes.
The BBC contacted 27 local authorities in the West Midlands and just over a third said they charged more for wider burial plots.
