Andy Burnham has been urged to ensure insurers give customers the best deals and quotes upfront, as part of his cost of living packages. The Labour Party government Prime Minister has been urged to go further with his cost of living packages.
Calls to reform the insurance market
Among the calls from experts, including the Guardian, is improving the insurer market. As it stands, if you don’t call your insurer - be it car, home or life - and query an increase, shop around or threaten to leave, you will probably end up paying more than you need to. The newspaper went on and also warned consumers up and down the country: "It is a system that still penalises those who stay put."
The Prime Minister has announced that he will be rolling out a series of ‘everyday fixes’ to help people with the cost of living. As Mr Burnham begins his cost of living nationwide tour, opposition figures have accused Mr Burnham of “tinkering” with his announcements.
Reform UK's response
Reform UK’s economic spokesman Robert Jenrick said the prime minister should “scrap green levies and taxes on energy bills”, and rule out tax rises in October’s budget. He added: “It’s high time the Labour Party cut the ballooning benefits bill so we can relieve pressure on the hardworking majority that hold our country together.”
Harry Goodliffe, Director at Winchester-based HTG Mortgages, said: "Companies didn't come up with sneaky price rises, the Government did. Every household already knows what a subscription trap feels like – they've been living with one since income tax thresholds were frozen and inflation quietly dragged more of their income into higher tax bands. So it's a bit different watching ministers crack down on gyms and streaming services for the same trick they're pulling themselves. That said, banning fake 'was' prices and confusing renewals is straightforward and overdue; shoppers have been getting hit by hidden discounts for years."
Industry reaction to the proposed measures
Darryl Dhoffer, Founder at Bedford-based The Mortgage Geezer, said: "Ah, the thrilling mystery of the endless 'Closing Down Sale', the timeless sofa shop illusion where everything is always 70% off, provided you ignore that it was listed at a fictional £3,000 for five minutes in a dark warehouse last Tuesday. Retailers love a fake 'was' price, anchoring our gullible brains into thinking a mediocre bed frame is a genuine bargain. Burnham’s big crusade to ban 'pretend prices' and subscription traps? Truly revolutionary. It only took us decades to decide that tricking shoppers and holding credit cards hostage isn't stellar business ethics. So instead of sprinting to the retail park before Sunday's 'final' deadline, just look at the actual frame, ignore the shiny discount tag, and assume the sale price is the real price. Because it normally is."
The calls come as the Prime Minister's cost of living tour continues, with further announcements expected in the coming weeks. The government has yet to respond to the specific proposals regarding the insurance market.
