I think this is fascinating, I never heard of it before. I'll have to look in Smith on Wool ...
It applies to England of course, and possibly Wales.
Mary
Burials in Woollen "In 1666 an Act of Parliament was passed by which people were compelled to bury the dead in woollen. The purpose of the Act was to help the farmers and to encourage the manufacture of woollen goods. The new measure was very unpopular. From the very early times people had been accustomed to bury their dead in linen, and a great many people persisted in continuing the old practice. To put a stop to disobedience the Government imposed a fine of £5 on the offender, whenever the act was broken.. Half of the £5 was given to the poor and half to the informer. An entry (in one of the Church registers) states that, on at least one occasion, this law was brought into operation against a Salton resident. The entry reads thus: 'Elizabeth Dowker, the wife of Robert Dowker, was interred July 15th., 1692, and her corpse was wrapped in linen, for which the penalty of £5 was imposed, according to the Act of Parliament, and one half was given to the informer and the other to the church wardens, to be distributed to the poor of the parish.' The Act of Parliament which compelled people to bury the dead in woollen was finally repealed in 1814." 'A Brief History of Brawby and Salton' by Rev H.A Douglas 1937