Prime Minister Andy Burnham has announced a crackdown on misleading business practices as part of his plan to ease pressure on household finances.
The government will move to ban fake discounts, including inflated “was” prices and misleading recommended retail prices, which can make shoppers believe they are getting a bigger saving than they really are. The measures are expected to save consumers around £400 million a year.
Burnham is also bringing forward new protections against subscription traps to January. Businesses will have to give customers clearer information before they sign up, remind them about their subscriptions and make it easier to cancel. Customers will also get a 14-day cooling-off period after a free trial ends or a long-term contract renews.
There are around 155 million active subscriptions in the UK, with about £1.6 billion spent each year on unwanted subscriptions. The government estimates people could save an average of £14 a month by leaving unwanted subscriptions.
The measures form part of what Burnham calls a series of “everyday fixes” aimed at making daily life more affordable. Burnham said the government’s focus was on giving households more room to manage rising costs. Citizens Advice welcomed the consumer measures but said they should not be the end of the government’s action.
The cost-of-living measures also extend to student finance. Changes taking effect from September will see student loan interest rates linked to inflation, while repayment thresholds will also change. For Plan 2 borrowers, the repayment threshold is being increased to £29,385, meaning those earning below that amount will not have to make repayments.
Burnham is expected to announce further measures in the coming months as he travels around Britain to hear directly from voters about the financial pressures they face.