Burnham Launches Major Cost-of-Living Crackdown to End 'Rip-Off' Discounts and Subscription Traps

Prime Minister Andy Burnham has announced a new consumer crackdown on misleading discounts and unwanted subscriptions, aimed at helping households avoid paying more than they need to. The plans form part of a wider programme of 'everyday fixes' aimed at addressing common consumer problems. Burnham said people are 'sick and tired' of rip-off discounts and subscription traps.

Fake 'Bargains' Could Face a Tougher Crackdown

The government wants to tackle pricing practices that can give shoppers a false impression of how much they are saving. The Digital Markets, Competition and Consumers Act 2024 already prohibits a range of misleading commercial practices and sets requirements around consumer information.

The proposal would target retailers that raise an item's price shortly before a sale, making the subsequent discount appear larger than it really is. Adding them to the banned-practices list would give regulators a clearer basis for enforcement. Burnham said, 'If something is advertised as half price, it should actually be half price.'

Consumer groups welcomed the proposals, while the British Retail Consortium said its members already comply with existing rules on promotions.

January Rules to Tackle Unwanted Subscriptions

The government is also bringing forward protections against subscription traps, where customers can be left paying for services they no longer want or did not realise would renew. New rules are due to take effect in January 2027, months earlier than previously planned.

Under the new rules, businesses will need to provide clearer pre-contract information, issue reminders, and make it easier for customers to cancel. A new 14-day cooling-off period will also allow consumers to cancel after a trial or when a qualifying long-term subscription renews.

The government says the changes should create a more level playing field for businesses, with firms that already provide clear renewal notices and straightforward cancellation expected to see little change. Businesses that do not meet these standards will need to make changes under the new rules.

Government figures show there are around 155M active subscriptions across the UK, including 9.7M unwanted ones. Consumers spend an estimated £1.6B a year on subscriptions they no longer want. Cancelling one could save consumers an average of £14 a month, the government estimates.

'Room to Breathe' for Households

Burnham said the government would make it 'as easy to leave a subscription as it is to join.' He described the changes as 'just the start', saying the government wanted to put more money in people's pockets.

The government is also bringing forward cheaper bus travel, with a £2 cap on single fares on participating services in England outside London from January 2027. The cap is intended to make everyday journeys more affordable and will remain in place throughout 2027.

Consumer Groups Back New Rules

Consumer group Which? welcomed the proposals, with Sue Davies, its head of consumer rights and food policy, calling for the government to implement the rules swiftly and back them with tough enforcement.

Citizens Advice also backed action on subscription traps, highlighting the number of people who end up paying for services they did not mean to keep. Research published by the organisation in 2024 found that more than 13M people had accidentally taken out a subscription in the previous 12 months.

For shoppers, the real test will be whether the changes make discounts easier to judge and subscriptions easier to cancel. How much difference they make will depend on how the new rules are implemented and enforced.

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