Andy Burnham has confirmed that households will benefit from a £168 cost of living boost following new government measures announced by the Prime Minister. The Labour PM has unveiled a series of 'everyday fixes' designed to ease financial pressures, starting with two key initiatives effective immediately.
New Rules to End Subscription Traps
The first measure targets subscription traps, introducing 'easy to exit' rules that force businesses to provide clearer up-front information, regular reminders, and a much simpler process for cancelling contracts. This will save consumers an average of £14 per month on every unwanted subscription, amounting to £168 annually.
According to the Prime Minister, these changes will prevent customers from losing money through difficult-to-cancel agreements. The second measure tackles misleading discounts and rip-off prices, aiming to protect shoppers from deceptive pricing practices.
Business Leaders Welcome Consumer Protections
Daniel Mohacek, CEO of TruthEngine, praised the move: "Bringing these protections forward is good news for consumers. Subscriptions should be simple and transparent. People should know what they are signing up to, what they will pay, when a contract renews and, crucially, be able to leave just as easily as they joined."
Mohacek emphasised that this is part of a broader transformation under the Digital Markets, Competition and Consumers Act. He warned businesses that regulators are increasingly scrutinising fake reviews, hidden fees, questionable promotions, and deliberately difficult customer journeys.
"The message for businesses is clear. It is no longer enough for the headline offer or the terms and conditions to be technically correct. You need to look at how the whole customer journey works in practice," he added.
Concerns Over Delays and Business Exemptions
Harvey Dhillon, Founder & CEO at Zmartly, expressed cautious support: "The shop that never faked a 'was' price has spent years losing to the one that did. That is the half of this story nobody tells."
However, Dhillon noted timing concerns: "These subscription rules were expected in spring 2026, slipped to autumn 2026, and are now expected in 2027." He also highlighted that drip pricing has been banned since April 2025, with the CMA issuing fines of £4.2 million in April 2026.
Dhillon pointed out a critical gap: "None of this protects a business. That same shopkeeper, buying an auto-renewing card terminal contract, gets no easy-cancel right and no cooling-off period, because this law protects consumers, not firms."
Impact on Workers and Businesses
Kate Underwood, Founder & Chief People Strategist at Kate Underwood HR and Training, framed the issue in terms of workplace wellbeing: "It's good news for workers. A sneaky subscription isn't an annoyance, it's a pay cut nobody agreed to."
She explained that financial stress affects productivity: "Money worries don't stay at home, they walk in every Monday, sit at the desk and never shut up. When someone's pay is already stretched, a subscription they can't cancel, or a 'deal' that was never a deal, quietly robs them. Then it shows up as sick days, mistakes and people quietly checking out."
Underwood concluded: "People aren't begging, they just want to keep the money they already earned. If a business needs a hidden trap to hold onto you, it never deserved you."
