New measures aim to make it easier for consumers to cancel services and identify genuine deals
The UK government is bringing forward measures designed to protect consumers from unwanted subscriptions and misleading pricing practices as families continue to face pressure from the cost of living.
Prime Minister Andy Burnham said the changes would make it easier for people to cancel subscriptions and prevent customers from being moved onto more expensive contracts without their knowledge.
The measures were originally announced under former Prime Minister Sir Keir Starmer in April but are now being accelerated by Burnham’s government.
Rules to come into force earlier
The changes were initially expected to take effect next spring. However, the government now plans to implement them by January 2027.
Officials previously estimated that the subscription reforms could save consumers around £400 million a year, with some individuals potentially saving as much as £170 annually.
Burnham said his government was determined to use every available measure to give households greater financial breathing room.
Crackdown on misleading prices
The government is also planning new rules against what it calls “pretend prices”.
The proposals would prevent retailers from using misleading “was” prices, invented discounts and inaccurate recommended retail prices to make products appear cheaper than they really are.
A consultation is expected to take place this autumn to determine how the rules will work and how they will be enforced.
Consumer groups welcome plans
Consumer rights organisation Which? welcomed the announcement, saying it had repeatedly identified businesses using deals that could mislead shoppers.
Sue Davies, the organisation’s head of consumer rights policy, urged the government to introduce the measures quickly.
The changes are intended to give consumers greater confidence that discounts advertised by retailers represent genuine savings.
Opposition attacks government
The measures have faced criticism from the opposition.
Shadow chancellor Mel Stride described the plans as “reheated” and accused Burnham’s government of having run out of ideas.
He questioned why the legislation had taken so long to be implemented, pointing out that the Digital Markets, Competition and Consumer Act was passed under the previous Conservative government in 2024.
That legislation introduced measures targeting hidden fees and fake online reviews and also made it easier for customers to cancel subscriptions.
More cost-of-living measures expected
The announcement is the latest in a series of measures from Burnham’s government aimed at easing financial pressure on households.
Other policies include a £2 bus fare cap in England and a VAT reduction on household electricity bills.
However, pressure is expected to increase ahead of the government’s Budget, which Chancellor John Healey is due to deliver on October 28.
Healey has stressed the importance of maintaining “strong fiscal discipline”, potentially limiting the government’s ability to introduce further expensive measures.
The government says the latest consumer reforms will help households keep more control over their spending and avoid misleading commercial practices.
