The Prime Minister has unveiled the first measures in a wider programme of ‘everyday fixes’ designed to help households manage the cost of living, with action targeting misleading retail discounts and costly subscription traps.
Under the plans, retailers could face tougher restrictions on the use of deceptive pricing tactics that give consumers a false impression of value. The government says shoppers have increasingly raised concerns about businesses artificially inflating prices before advertising significant discounts, making deals appear more attractive than they actually are.
The proposed changes aim to tackle practices such as fake reductions, where a discounted price is no lower than the previous selling price, leaving consumers with no real saving while putting honest retailers at a competitive disadvantage.
Alongside action on pricing transparency, ministers are pressing ahead with reforms to make cancelling subscriptions easier. New consumer protection rules are due to come into force in January 2027, a period when many people sign up to new services and memberships.
The government estimates that consumers spend around £1.6 billion every year on subscriptions they no longer want, with an average saving of £14 per month available to households that successfully cancel unnecessary services.
Under the new subscription rules, businesses will be required to:
- Provide clearer information before customers sign up.
- Send regular reminders before subscriptions renew.
- Make cancellation processes significantly easier.
- Offer a new 14-day cooling-off period after a free trial or long-term contract renewal.
For businesses that already operate transparent renewal and cancellation processes, the changes are expected to have minimal impact while helping create a more level playing field across the market.
Certain charitable memberships linked to cultural and heritage organisations will be exempt from the new rules, recognising their role in preserving the UK's historic, cultural and environmental assets.
Prime Minister Andy Burnham said:
“I know people are sick and tired of rip-off discounts and subscription traps. Westminster has got used to telling people that everyday hassles like this are just part of life. I don’t think that’s right, especially when the cost of living continues to weigh heavily on so many people’s lives. I’m determined to pull every single lever we can to provide people with some room to breathe on the cost of living.
“We’re putting an end to phoney bargains. If something is advertised as half price, it should actually be half price. We’re also making it as easy to leave a subscription as it is to join.
“These are just two of the everyday fixes we’re going to be rolling out – today is just the start. We want to put more money in people’s pockets and give people hope that politics really can work for them and their everyday lives.”
The announcement forms part of a broader government agenda focused on easing financial pressures on households. It follows earlier measures including bus fare caps and action aimed at reducing energy costs.
A consultation launching this autumn will examine whether additional pricing practices should be automatically classified as unfair under the Digital Markets, Competition and Consumers Act.
These could include:
- Fake “was” prices.
- Invented discounts.
- Misleading Recommended Retail Prices (RRPs).
Government ministers argue that current legislation can make enforcement challenging. By explicitly banning these tactics, regulators would be able to take swifter action against businesses that mislead consumers, while providing greater clarity for retailers seeking to comply with the rules.
The Prime Minister has indicated that these reforms mark the beginning of a wider programme of practical measures intended to improve everyday life, reduce household costs and restore confidence that government can deliver tangible benefits for working people.
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