Andy Burnham vows to tackle subscription traps amid cost of living crisis
Andy Burnham has vowed to tackle “rip-off” subscription traps as part of his blitz of policies to tackle the cost of living crisis and provide “everyday fixes” for rising bills, reports BritPanorama.
The prime minister will begin a summer tour of the country on Monday, aiming to accelerate plans to force companies to make it easier to cancel subscriptions while providing more transparent upfront information about costs instead of quietly auto-renewing them at increased prices.
During August, Mr. Burnham will travel nationwide asking the public how the government can improve their lives. Officials have indicated that the PM will be in “listening mode” as he intends to “pull every single lever we can to provide people with some room to breathe on the cost of living”.
The changes to subscription practices, which were announced in April under Sir Keir Starmer’s government, were initially expected to come into force next spring. However, Mr. Burnham will expedite their introduction to January.
Additionally, he will launch a consultation on including deceptive discount offers on the Competition and Markets Authority’s list of banned practices. This move aims to empower the watchdog to penalise firms that artificially inflate prices followed by misleading discounts.
The prime minister expressed, “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.”
Dame Clare Moriarty, chief executive of Citizens Advice, welcomed the proposals, noting that subscription traps and deceptive discounts represent “a widespread problem.” Citizens Advice previously reported that 26 per cent of UK adults had accidentally subscribed to a service within a single year, estimating that government action could save households £14 monthly.
Further announcements are anticipated over the summer, with the prime minister characterising Monday’s proposals as “just the start.” The upcoming tour is set to inform his 10-year plan for the country, with a focus on revitalising high streets.
A spokesperson for the prime minister stated he would be “getting out of Westminster and meeting people where they are.” However, opposition figures have dismissed his August plans as a “vanity tour,” criticising them as mere “tinkering” and urging broader tax cuts. Concerns regarding the funding of Mr. Burnham’s cost of living measures have also arisen.
This follows his recent announcement of a range of policies aimed at reducing bills during his first week in office. These include a 20 per cent business rate cut for pubs, clubs, and live music venues, a VAT cut on electricity bills, and bus fares capped at £2 from January.
The business rate cut alone is expected to impose a £100 million annual cost on the government, with questions remaining on how it will be funded. Furthermore, Mr. Burnham is confronted with an estimated £4.7 billion budget gap in Sir Keir’s defence spending plan.
Chancellor John Healey, announcing that the first Budget will be held on 28 October, asserted it would be “built on fiscal discipline.”
Last month, the prime minister was cautioned that he would need to raise taxes or reduce spending to meet new priorities, according to one of the UK’s leading economic think tanks. Economists at the National Institute for Economic and Social Research (NIESR) warned both the prime minister and Mr. Healey that “there is no capacity to borrow any more” and inflation could push the cost of living beyond the Bank of England’s forecasts.
In response to the latest measures, shadow chancellor Sir Mel Stride stated, “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.”
