Following Andy Burnham's high-profile crackdown on consumer rip-offs, campaigners and industry experts are calling on the Prime Minister to implement further measures to help households save money. The Greater Manchester Mayor's initiative, which targeted unfair pricing practices, has prompted a national debate on what more central government could do to protect consumers.
Calls for Energy Price Cap Extension
One of the most pressing suggestions is extending the energy price cap beyond its current form. According to consumer group Which?, the cap, which currently protects default tariff customers, could be expanded to cover more vulnerable groups and prepayment meter users. "The energy market still fails many households," said a Which? spokesperson. "Extending the cap and making it more dynamic would save the average family up to £200 a year."
Energy analysts also propose a social tariff for low-income households, which would be set below the price cap. This would require government legislation but could directly tackle fuel poverty, which affects over 4 million UK households.
Reforming Loyalty Penalties
Another area identified is the "loyalty penalty" in sectors like broadband, mobile, and insurance. Citizens Advice has long campaigned against the practice where existing customers pay more than new ones. "It's unfair that loyal customers are charged up to £400 more a year for the same services," said a Citizens Advice representative. "We urge the PM to introduce a mandatory 'best price' guarantee for all customers."
The Competition and Markets Authority (CMA) has already conducted market studies, but campaigners argue that without regulatory teeth, companies will continue to exploit inertia. A proposed measure is to require companies to automatically move customers to the cheapest available tariff at renewal.
Strengthening the Digital Markets Unit
With the rise of online platforms, experts suggest giving the Digital Markets Unit (DMU) more powers to tackle rip-offs in the digital economy. This includes addressing hidden fees, fake reviews, and the dominance of tech giants. "The DMU needs to be fully operational with real enforcement powers," said a tech policy analyst. "This could save consumers billions by ensuring fair competition."
Recent research indicates that online shopping scams cost UK consumers over £1 billion annually. A stronger regulator could mandate clearer pricing and quicker redress, potentially saving the average adult £150 per year.
Addressing the Cost of Living Crisis
The broader cost of living crisis remains a backdrop to these proposals. With inflation still above the Bank of England's 2% target, households are feeling the pinch. The Prime Minister has already announced some measures, but experts argue more is needed. "The government should consider temporary VAT cuts on essential goods and energy," suggested an economist at the Resolution Foundation. "This would provide immediate relief to the most vulnerable."
The Resolution Foundation estimates that a temporary VAT reduction on energy bills could save a typical household £100 over the winter months. Combined with other measures, the total annual saving could reach £500 per family.
What Has Burnham Done?
Andy Burnham's crackdown, which began in Greater Manchester, focused on exposing rip-offs in local services, including parking fines, housing, and public transport. His "Rip-Off" campaign has been praised for raising awareness but has limited scope outside his mayoral authority. "Burnham has shown what can be done at a local level, but national action is needed," said a political commentator.
The campaign has already led to some concrete changes, such as capping parking fines at council-run car parks and introducing a charter for fair housing. However, these apply only to Greater Manchester, leaving other regions without similar protections.
Next Steps for the PM
As the PM considers his response, consumer groups are urging him to adopt a comprehensive "consumer fairness" agenda. This would include setting up a new consumer enforcement body, making price comparison tools more transparent, and introducing a statutory duty of care for essential services.
"The public is tired of being ripped off," said a spokesperson for the consumer group Fair Deal. "The PM has a chance to make a real difference by putting consumers first. We need action, not just promises."
With an election looming, the political pressure is mounting. The PM's response to these calls could shape the consumer landscape for years to come.
