Burnham brings forward ban on 'subscription traps' to ease cost of living
The prime minister is embarking on a UK tour with a series of announcements aimed at easing living costs.
Andy Burnham has announced that a ban on "subscription traps" and a crackdown on "pretend prices" will be implemented sooner than planned, aiming to alleviate the cost of living for consumers.
The Prime Minister is accelerating a set of reforms initially unveiled by his predecessor, Sir Keir Starmer, which are designed to simplify the process of canceling subscriptions. Additionally, Burnham intends to prohibit retailers from using deceptive "was" prices, which he argues mislead shoppers into believing they are securing better value.
Shadow Chancellor Mel Stride dismissed these measures as "reheated," suggesting that the Prime Minister "has already run out of ideas."
These initiatives, first announced by Sir Keir Starmer in April, are being fast-tracked by Burnham's administration to provide families with "room to breathe" amidst rising living costs.
Burnham, currently on a UK tour during Parliament's recess, has pledged a series of "everyday fixes" to assist with the cost of living. He stated, "I'm determined to pull every single lever we can to provide people with some room to breathe on the cost of living."
The accelerated measures aim to streamline the cancellation of unwanted subscriptions and prevent consumers from being unknowingly enrolled in expensive contracts. While initially expected next spring, Burnham's government has committed to implementing them by January 2027. When first announced in April, these plans were projected to save consumers a total of £400 million annually, or up to £170 per person.
Beyond these existing changes, Burnham is also committed to ending the use of "pretend prices" by shops. This will prevent retailers from employing "was" prices, fabricated discounts, or misleading recommended retail prices (RRPs) to promote deals. The government will launch a consultation this autumn to determine the implementation of these new measures.
Consumer group Which? stated it has "repeatedly exposed businesses, including trusted household brands, ripping off customers with dodgy deals that aren't what they seem." Sue Davies, head of consumer rights policy at Which?, welcomed the announcement and urged the government to introduce the rules "swiftly."
However, Stride commented, "The cost of living didn't become a problem last week, so you have to ask why it has taken Labour so long to enact legislation passed by the previous government." The Digital Markets, Competition and Consumer Act, enacted under the Conservatives in 2024, addressed hidden fees, fake online reviews, and simplified subscription cancellations.
This announcement marks Burnham's latest effort to ease the cost of living, following a £2 bus fare cap in England and a VAT reduction on household electricity bills. Nevertheless, he is likely to face pressure for more substantial changes in the Budget, which Chancellor John Healey will deliver on October 28. Healey, however, has indicated his commitment to "strong fiscal discipline," which will limit government spending.