Prime Minister Andy Burnham has announced a significant acceleration of consumer protection measures, aiming to eliminate so-called subscription traps and crack down on deceptive retail practices. These new regulations will compel companies to provide clearer information regarding auto-renewals and ensure that contracts are far easier for consumers to cancel.
The government is bringing forward a package of reforms originally announced under his predecessor, Sir Keir Starmer. These measures are designed to stop the common practice of rolling customers onto expensive contracts without their explicit knowledge or consent. By simplifying the cancellation process and requiring regular reminders, the administration hopes to provide families with more financial breathing room.
The prime minister is also targeting “pretend prices,” where retailers falsely claim that products were previously sold at much higher prices to create the illusion of a bargain. Burnham stated that such tactics trick shoppers into believing they are securing better value, and he intends to outlaw these misleading marketing strategies to protect household budgets.
While these plans were initially expected to come into force next spring, the government has now committed to a faster timeline, promising full implementation by January 2027. This shift is part of a broader effort to provide immediate relief to those struggling with the ongoing cost of living crisis, following previous interventions such as the £2 bus fare cap and VAT reductions on electricity.
When these proposals were first introduced in April, officials estimated they could save consumers up to £400 million annually, or approximately £170 per person. To finalize the details, the government plans to launch a formal consultation this autumn, which will determine the specific mechanisms for enforcing these new consumer rights.
Consumer advocacy group Which? has expressed strong support for the move. Sue Davies, the organization’s head of consumer rights policy, welcomed the announcement and urged the government to implement the rules as swiftly as possible, noting that the group has repeatedly exposed trusted brands for using dodgy deals to exploit customers.
The announcement comes as Burnham embarks on a tour of the UK during the parliamentary recess to promote a series of “everyday fixes.” He emphasized his determination to pull every available lever to provide relief, stating, “I’m determined to pull every single lever we can to provide people with some room to breathe on the cost of living.”
However, the policy shift has faced criticism from the opposition. Shadow Chancellor Mel Stride branded the measures as “reheated” and accused the prime minister of running out of fresh ideas. Stride questioned why it has taken the Labour government so long to enact legislation that builds upon the Digital Markets, Competition and Consumer Act, which was passed under the Conservatives in 2024 to address hidden fees and fake online reviews.
Looking ahead, Burnham will likely face mounting pressure to deliver more substantial economic changes in the upcoming Budget. Chancellor John Healey is scheduled to deliver that statement on 28 October, though he has already signaled that he will maintain “strong fiscal discipline,” which will necessarily limit the scope of government spending.
The announcement is Burnham’s latest intervention aimed at easing the cost of living, following a £2 bus fare cap in England and a VAT cut on household electricity bills.
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