Government Unveils New Consumer Protections Against 'Rip-Off' Practices
Measures include a ban on fake discounts and easier subscription cancellations, with an estimated saving of £14 per household monthly.
Carla Rooney
Andy Burnham has announced new government measures to combat the cost of living crisis.
Customers will gain a 14-day cooling-off period after a trial concludes or a long-term contract renews.
The Prime Minister declared, "I know people are sick and tired of rip-off discounts and subscription traps." He added, "Westminster has got used to telling people that everyday hassles like this are just part of life. I don’t think that’s right, especially when the cost of living continues to weigh heavily on so many people’s lives."
Subscription traps and deceptive discounts were 'a widespread problem.'
Citizens Advice found 26% of UK adults accidentally took out a subscription in a single year; Dame Clare Moriarty confirmed that "subscription traps and deceptive discounts were 'a widespread problem.'"
The government estimates its action could save households £14 per month, claiming consumers will save an average of £14 a month for each unwanted subscription they are able to leave early.
Andy Burnham's government claims the crackdown on “rip-off” business practices is expected to benefit consumers to the tune of £400m a year.
Meanwhile, the Prime Minister will embark on a summer tour of the country, reportedly aiming to reconnect the government with the public and address the cost of living and high street improvements.
Officials stated the Prime Minister will be in “listening mode” during his tour, focusing on tackling the cost of living and improving local high streets.
Mr. Burnham, who succeeded Keir Starmer last month, announced cuts to VAT on household energy bills and a £2 cap on bus fares in his first week in office.
He is expected to announce a series of “everyday fixes” to reduce costs, promising to “pull every single lever we can to provide people with some room to breathe on the cost of living.”
Andy Burnham has already run out of ideas. The cost of living didn’t become a problem last week, so you have to ask why it has taken Labour so long to enact legislation passed by the previous government. Labour’s tax hikes have sent costs soaring for hardworking families and destroyed jobs. Consultations and reheated measures won’t make up for that.
Opposition figures criticized the Prime Minister's August plans as a “vanity tour” offering only “tinkering.”
Sir Mel Stride stated, "Andy Burnham has already run out of ideas." He continued, "The cost of living didn’t become a problem last week, so you have to ask why it has taken Labour so long to enact legislation passed by the previous government. Labour’s tax hikes have sent costs soaring for hardworking families and destroyed jobs. Consultations and reheated measures won’t make up for that."
These plans were initially announced under Sir Keir Starmer and are being brought forward by the current government; new measures are intended for implementation by January 2027.
Downing Street has not said whether what Burnham hears on the tour will shape the next round of “everyday fixes.”