Prime Minister Andy Burnham has announced that new measures to protect consumers from unwanted subscriptions and misleading pricing tactics will be brought forward, with a target implementation date of January 2027.
The changes, originally planned under his predecessor Sir Keir Starmer, are intended to make it easier for individuals to cancel recurring contracts and to prevent shops from falsely advertising discounts. Mr Burnham stated the acceleration of these plans is part of a broader effort to help families manage the high cost of living.
Addressing "subscription traps", the government aims to compel businesses to provide clearer upfront information to customers, issue regular reminders about their contracts, and establish a much simpler process for exiting agreements. The goal is to prevent consumers from being unknowingly rolled onto expensive contracts or from struggling to cancel unwanted services.
Research by the Department for Business and Trade, released when the plans were first announced in April, indicated that there are approximately 10 million unwanted, active subscriptions across the UK. This figure includes more than 3.5 million people who are automatically moved from free or discounted trials into full-cost contracts without their explicit consent, and a further 1.3 million who are caught out by unexpected auto-renewals.
The government projects that these changes could save consumers an estimated £400 million annually, equating to up to £170 per person. Initially, the measures were anticipated to come into force next spring, but Mr Burnham's administration has committed to their implementation by January 2027.
In addition to tackling subscription issues, Mr Burnham has pledged to address the use of "pretend prices" by retailers. This involves preventing shops from using misleading "was" prices, fabricated discounts, or deceptive recommended retail prices (RRPs) to suggest a better deal than is genuinely available. While it is already unlawful to use false "was" prices, these practices are not currently on the Competition and Markets Authority's (CMA) list of banned practices, which automatically deems certain actions illegal without the need to prove consumer harm.
A public consultation is scheduled for this autumn to determine the precise method of implementing these new measures against misleading pricing.
Mr Burnham, who is currently undertaking a tour of the UK during the parliamentary recess, commented: "I'm determined to pull every single lever we can to provide people with some room to breathe on the cost of living." He has promised a series of "everyday fixes" aimed at alleviating financial pressures on households.
The announcement has drawn criticism from the opposition. Shadow Chancellor Mel Stride described the measures as "reheated" and suggested the Prime Minister "has already run out of ideas." Mr Stride questioned why it had taken the Labour government so long to enact legislation that had been passed by the previous Conservative administration, referring to the Digital Markets, Competition and Consumer Act. This Act, passed in 2024, included provisions to crack down on hidden fees, fake online reviews, and made it easier for customers to cancel subscriptions.
Consumer group Which? welcomed the government's announcement. Sue Davies, Head of Consumer Rights Policy at Which?, stated that the organisation had "repeatedly exposed businesses, including trusted household brands, ripping off customers with dodgy deals that aren't what they seem." Ms Davies urged the government to implement the new rules "swiftly."
The Liberal Democrats called for Mr Burnham's government to "go further" in protecting consumers. Daisy Cooper, the party's Treasury spokesperson, advocated for "strengthened protections against rogue traders" and additional action to address "shrinkflation," the practice where product sizes are reduced while prices remain constant.
This initiative follows other interventions by Mr Burnham aimed at easing the cost of living, including the introduction of a £2 bus fare cap in England and a VAT cut on household electricity bills. However, the Prime Minister is anticipated to face pressure to introduce more substantial changes in the upcoming Budget, which Chancellor John Healey is scheduled to deliver on 28 October. Mr Healey has previously indicated a commitment to "strong fiscal discipline," which may restrict the government's spending capacity.
Consumers currently possess certain rights to cancel contracts for services such as broadband and mobile phones, though these rights typically depend on specific circumstances, such as problems with the service provided.
