Andy Burnham has announced new measures to protect consumers from unfair subscription practices and deceptive pricing strategies, aiming to ease financial pressure on households during the ongoing cost of living crisis.
The initiative will require businesses to provide clearer upfront information about subscription terms, issue regular reminders to customers, and offer simplified cancellation processes. Additionally, companies must now disclose when contracts automatically renew at higher prices without explicit customer consent.
These changes build upon policies initially introduced by Burnham’s predecessor, Sir Keir Starmer, in April. However, the current government has accelerated implementation, moving the effective date from spring to January 2027.
Previously announced plans estimated that eliminating unwanted subscriptions could save UK consumers £400 million annually, potentially reducing individual household expenses by up to £170. Officials report that approximately 10 million inactive subscriptions remain active across the country, with over 3.5 million people unknowingly transitioning from free trials to paid contracts, and an additional 1.3 million affected by surprise auto-renewals.
Beyond subscription reforms, Burnham’s government is also targeting misleading pricing tactics used by retailers, including false “was” prices, fabricated discounts, and manipulated recommended retail prices.
A consultation scheduled for autumn will determine specific implementation details for these expanded consumer protections. Consumer advocacy group Which? has endorsed the moves, with policy head Sue Davies urging swift legislative action.
However, opposition figures have criticized the timing and scope of the initiatives. Shadow Chancellor Mel Stride described the measures as “reheated” policies and questioned why immediate action wasn’t taken when the issue first arose.
The Digital Markets, Competition and Consumer Act of 2024 already established some subscription cancellation rights and addressed hidden fees. While false “was” pricing remains prohibited, such practices aren’t currently included in the Competition and Markets Authority’s automatic blacklist of illegal activities—which includes unauthorized quality marks and pyramid schemes.
The Liberal Democrats have called for broader reforms, including stronger anti-fraud measures and action against “shrinkflation”—where product sizes decrease while prices remain unchanged.
This announcement follows other cost-of-living interventions such as a £2 cap on bus fares in England and reduced VAT on household electricity bills. As Chancellor John Healey prepares to deliver the budget on October 28, expectations are high for more comprehensive fiscal measures, though his commitment to “strong fiscal discipline” may limit new spending programs.