Burnham Promises Action for Consumers to Help Ease Cost-of-Living Squeeze

Andy Burnham’s promise to tackle “subscription traps” and deceptive discount offers is a welcome step towards easing the cost-of-living burden on UK households. However, this appears to be just a small part of a much broader problem.

The Prime Minister has brought forward changes to subscription traps from next spring to January, requiring companies to provide clearer information about costs and making it easier for consumers to cancel subscriptions. This move is likely to alleviate some financial pressure on households, as Dame Clare Moriarty, chief executive of Citizens Advice, pointed out: “It’s a small step in the right direction.”

But the statistics are stark: 26% of UK adults have accidentally taken out a subscription in a single year. This issue is not just about consumers being careless with their finances; it’s a symptom of a larger problem – the growing complexity and opacity of modern consumerism. Companies are increasingly using “subscription traps” to lock customers into long-term contracts, often without transparency about costs involved.

Burnham’s proposals also include launching a consultation on adding deceptive discount offers to the Competition and Markets Authority’s list of banned practices. This move tackles the issue of “phoney bargains” head-on – artificially inflated prices offered at a discounted rate to make them seem like a good deal.

However, critics argue that Burnham’s proposals are just Band-Aid solutions for a festering wound. The cost-of-living crisis is not just about individual consumer choices; it’s also driven by systemic issues such as the impact of austerity policies, the rise of precarious work, and the decline of living standards over several decades.

Shadow chancellor Sir Mel Stride accused Labour of running out of ideas, while Lib Dem Treasury spokeswoman Daisy Cooper called for stronger consumer protections. These criticisms are not unfounded – after all, the cost-of-living crisis is a complex issue that requires more than just piecemeal solutions.

Despite these criticisms, Burnham’s determination to address the cost-of-living crisis is admirable. As he said in his statement, “I’m determined to pull every single lever we can to provide people with some room to breathe on the cost of living.” However, it remains unclear whether these proposals will have a meaningful impact on households struggling to make ends meet.

The question now is what Burnham will do next – focus on consumer protection and everyday fixes or tackle the more systemic issues driving the cost-of-living crisis. The answer remains to be seen, but one thing’s certain: the British public will be watching with interest as the Prime Minister embarks on his summer tour of the UK.