PM starts roll out of ‘everyday fixes’ on the cost of living – ending rip-off discounts and subscription traps
The UK Prime Minister announced measures to ban misleading discounts and subscription traps, aiming to save households an average of £14 monthly. New rules will enforce clearer pricing and easier cancellation from January 2027.
The Prime Minister launched a series of measures to address cost-of-living pressures, beginning with two key changes. Retailers will be prohibited from using misleading discount claims, such as inflating prices before advertising false reductions. Practices like charging the same price before and after a supposed discount will be banned to prevent deceptive value perceptions. The government states these changes aim to restore fairness in pricing and protect consumers from unfair commercial tactics.
New rules targeting subscription traps will take effect in January 2027, requiring businesses to provide clearer upfront information, regular reminders, and simpler cancellation processes. A 14-day cooling-off period will allow consumers to cancel after trial or renewal periods. The government estimates these changes could save households an average of £14 monthly by preventing unwanted subscriptions, with 155 million active subscriptions in the UK costing consumers an estimated £1.6 billion annually.
Certain charitable memberships for cultural and heritage organisations will be exempt from the new subscription rules due to their role in preserving national heritage. The Prime Minister emphasised the government’s commitment to addressing everyday financial pressures, stating that misleading bargains and difficult cancellations will no longer be tolerated. The announcement follows earlier actions, such as capping bus fares and reducing energy bills, as part of a broader effort to ease household costs.
A consultation will launch this autumn to assess whether additional deceptive pricing tactics, such as fake ‘was’ prices and invented discounts, should be explicitly banned under the Digital Markets, Competition and Consumers Act. The government asserts that clearer rules will benefit both consumers and compliant businesses, while enforcement measures, including fines, will hold non-compliant companies accountable. The changes aim to provide immediate relief to households struggling with financial pressures.