Andy Burnham is to bring forward measures targeting subscription traps and misleading discounts as the prime minister seeks to demonstrate that his government can deliver immediate relief to households facing persistent cost-of-living pressures.
Burnham will begin a nationwide tour on Monday, promising a series of “everyday fixes” aimed at reducing household expenses and improving local high streets. The programme will see the prime minister spend much of August travelling across the country in what officials have described as a period of “listening mode”.
The first measures will accelerate rules requiring companies to make subscriptions easier to cancel and provide clearer information about charges before customers sign up. The reforms, originally expected to take effect next spring, are now due to be introduced in January.
The government will also consult on adding deceptive discounting to the Competition and Markets Authority’s list of banned commercial practices. The proposal would strengthen the regulator’s ability to intervene where businesses artificially raise prices before presenting a subsequent reduction as a discount.
Burnham said consumers had become accustomed to practices that should not be considered normal.
“I know people are sick and tired of rip-off discounts and subscription traps,” he said, arguing that government should use “every single lever” available to give households greater financial breathing space.
Citizens Advice welcomed the proposals, pointing to research suggesting that 26 per cent of UK adults had accidentally taken out a subscription in a single year. The government estimates that its subscription reforms could save households about £14 a month.
The measures form part of a broader attempt by Burnham to establish an economic agenda early in his premiership. His government has already announced a reduction in VAT on household energy bills and a £2 cap on bus fares.
But the prime minister faces pressure to demonstrate that such interventions can materially improve household finances rather than simply reduce individual sources of irritation.
Inflation and prices remain among voters’ principal concerns. An Ipsos poll published in July found that 30 per cent of respondents identified the economy as a major concern, while 22 per cent specifically cited inflation or prices.
Opposition parties have dismissed the summer programme as political presentation rather than substantive economic reform, arguing that tax reductions would have a greater impact on household finances.
The Liberal Democrats have called for tougher protections against rogue traders and further action on energy costs and supermarket pricing.
Burnham’s challenge is therefore straightforward but difficult: convert a programme of targeted consumer interventions into a broader improvement in household confidence at a time when the underlying cost pressures facing the economy remain stubborn.
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