Andy Burnham is set to announce a new regulation designed to save UK households an estimated £168 each year.
On Monday, 10 August, the prime minister will move forward with plans to address so-called ‘subscription traps’. These measures will require companies to make it simpler for customers to cancel subscriptions and to provide clearer upfront information about subscription costs, rather than relying on quiet auto-renewals often at increased prices.
Originally announced in April and expected to take effect next spring, the Government has accelerated the introduction of these changes to January. Officials estimate this action could save consumers approximately £14 per month, amounting to £168 annually.
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The announcement will coincide with the start of Mr Burnham’s summer ‘cost of living tour’, during which he will travel across the UK throughout August, engaging with communities to explore further ways the Government can introduce policies that enhance everyday life.
During the tour, the prime minister plans to focus on issues such as the rising cost of living and the vitality of local high streets, adopting a ‘listening mode’ approach.
Addressing the subscription traps is one of several so-called ‘everyday fixes’ Mr Burnham is expected to reveal, as part of his wider commitment to ease the financial pressure faced by households. He has pledged to “pull every single lever we can to provide people with some room to breathe on the cost of living.”
Additionally, Mr Burnham will launch a consultation regarding the inclusion of deceptive discount practices on the Competition and Markets Authority’s list of banned activities. This move intends to empower the watchdog to take stronger action against businesses engaging in misleading tactics, such as artificially inflating prices before offering seemingly substantial discounts, which distort the true value of products.
Speaking on the issue, Mr Burnham said, “I know people are sick and tired of rip-off discounts and subscription traps. 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.”
The proposals have received support from Dame Clare Moriarty, chief executive of Citizens Advice, who described subscription traps and deceptive discounts as a “widespread problem.” Previous research by Citizens Advice revealed that 26 per cent of UK adults had unintentionally taken out a subscription within a single year.
Mr Burnham is expected to announce further initiatives over the coming months, with Monday’s plans forming the initial phase of his cost of living strategy.
However, some opposition figures have criticised the cost of living tour as a “vanity tour,” urging the government instead to implement broader tax reductions.