Prime Minister Andy Burnham is set to announce a new rule on Monday (August 10) that could save UK households up to £168 a year. The measure, part of a series of 'everyday fixes', will require companies to make it easier for consumers to cancel subscriptions and provide clearer information about costs up front, rather than quietly auto-renewing at higher prices.
New rules to tackle subscription traps
The changes were initially announced in April and were expected to come into force next spring. However, Burnham will bring the introduction forward to January, according to Government officials. The action on subscriptions is projected to save households £14 per month, totalling £168 annually.
The announcement comes as Burnham embarks on his summer 'cost of living tour' on Monday. He is expected to spend much of August travelling across the UK to explore how the Government can implement measures to improve lives. Officials say the prime minister will be in 'listening mode', focusing on tackling the cost of living and revitalising local high streets.
Consultation on deceptive discounts
In addition to subscription reforms, Burnham will launch a consultation on adding deceptive discount offers to the Competition and Markets Authority’s list of banned practices. This would empower the watchdog to penalise companies that artificially inflate prices and then offer a 'discount' to make products appear better value than they are.
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."
Support from Citizens Advice
The proposals have been welcomed by Dame Clare Moriarty, chief executive of Citizens Advice, who described subscription traps and deceptive discounts as a 'widespread problem'. Citizens Advice previously found that 26 per cent of UK adults had accidentally taken out a subscription in a single year.
Burnham is expected to make further announcements over the summer, with Monday's plans described as 'just the start'. However, opposition figures have criticised the cost of living tour as a 'vanity tour' and urged him to introduce broader tax cuts instead.
