Could a government-led consumer strategy smarten up our essential services?

Houses of Parliament

Today marks Theresa May’s first 100 days as Prime Minister. And while we’ve heard some positive things from her new government about prioritising consumer interests, we think what’s needed is a comprehensive consumer strategy to smarten up essential services.

From our research and from what you’ve been telling us, it’s clear that several essential markets in the UK aren’t working effectively enough for you.

If we’re to see an end to the mis-selling scandals and poor customer service that have blighted markets, such as energy, banking, telecoms and rail, over the past 10 years, then corporate culture needs an overhaul.

Consumer strategy

A cross-cutting government consumer strategy would promote competition, while protecting us when we’re at risk. Action could be focused on essential regulated markets, such as energy, banking, broadband and transport.

These are markets where we know (because you tell us so) you frequently face significant costs and where poor customer service is rife.

And, as the government starts negotiations to leave the European Union, the consumer strategy would put you right at the heart of them. It would safeguard the most important consumer rights in EU law and remove regulations that aren’t in your interest.

So what practical steps should the government take in these sectors this autumn? Well, here are our suggestions:

Energy
We’ve long been campaigning for a fairer energy market. This autumn and winter, Energy suppliers should take responsibility for engaging customers stuck on expensive gas and electricity tariffs and demonstrate that they’re going the extra mile to ensure they get a better deal.

Banking
Earlier this year, Which? revealed that unarranged overdraft fees can be much higher than the cost of a payday loan – punitive charges that are really taking their toll on far too many people. While payday loans have now had their charges capped, the cost for unarranged overdraft fees hasn’t been challenged.

To add insult to injury, in 2014, banks made £1.2bn from these charges, yet the competition authorities failed to address this issue as part of its banking inquiry. A consumer strategy should require the Financial Conduct Authority [FCA] to review these sneaky fees as soon as possible.


Broadband
Access to reliable, high-speed broadband is essential for enabling people to participate in the wider economy.

Far too many of you feel frustrated by lacking internet connection, people like John Vincent, who told us:

I live about three miles from a major city, yet we were without our internet connection for a week, and our phone line for two weeks (I run a small business from home, so this makes it really difficult).

The government needs to press ahead with its plans to ensure that people are automatically compensated for broadband service failures, putting the sector in line with the water and energy sectors.

Britain cannot duck the importance of creating and maintaining a modern communications network. The government must ensure its Universal Service Obligation for broadband is delivered cost effectively and that people are able to easily apply for a connection. A consumer strategy would deliver on this agenda and ensure that the level of service people receive from Openreach improves.

Train travel
Far too many rail passengers are being let down every single day, either enduring miserable train journeys or finding it impossible to get the right fare. Rail passengers deserve better. Action is required this autumn to help passengers to find the best priced ticket for their journey.

We need a new independent ombudsman to resolve passenger complaints and it should give new powers to the Office of Rail and Road [ORR] so that it can take action against train companies that continually let their passengers down.

Over to you

So, do you think a new consumer strategy is needed to ensure the government implements change in these failing markets? What else would you like to see put on its agenda?

Comments
Guest
John Woodhead says:
24 October 2016

Just a passing thought ,Make the banks repay public monies before they leave uk plus interest .

Guest
Nessie King says:
24 October 2016

The Warm Homes Grant is being used by Power supply companies to “punish” those who complain about their services. You can only apply via the company (and you can only get your power from one of the big six) and if they receive a complaint they “lose” your application and subject you to intrusive repeated meter readings. Complaints are not followed through and there is NO right of appeal – its an abuse of power that is hitting the poorest disabled hardest.

Guest
trevor a millar says:
24 October 2016

Nationalise the banks! Throw all bankers above the rank of cashier in jail! Make them break rocks, sew mailbags, pick oakum, mend roads and shovel manure for the rest of their lives! With ex-customers standing over them, kicking their a***s and shouting “Hard work doesn’t hurt anybody! The world doesn’t owe you a living!” Well, it’s worked in Iceland so far.

Guest

The latest news from Microsoft ?– as of 1-1-2017 ALL MS prices for goods will rise by 22 % – blaming the “weak £ ” – Unilever who supply our major supermarkets are pressuring them to raise prices substantially .

Guest

Who, in their right minds, would spend (waste?) any money buying anything from M$ ?

I agree that the weak pound is going to put all prices up. I hope those who voted for Brexit will acknowledge that this is their doing.

Guest

Derek , while I agree with you ,going by the large number of complaints about Win 10 on Which and other computer related topics most members of the British public who walk into PC World etc and buy Windows installed computers . MS is also being very astute, If you remember I said MS,s policy is that it is now supplying a Service from Win 10 onwards , you now have to buy at Windows store and take out a Windows account and pay for apps .This will increase as they are practically forcing you to use a Windows account , if you dont MS deny you services and they have said all “updates” will in the future have to be paid for, a good way of making money till their future new mobile /fixed dual system comes out to compete with other mobile systems. MS is using “hard sell ” just now on the British media , it carries a lot of clout.

Guest
Dorothy says:
25 October 2016

I think that Rail fares are too high Virgin Rail Run The East Coast Line and they have been given the Contract to Run the new High Speed West Coast Line I had no problem with the service just The Cost

Guest
Dave says:
25 October 2016

Third runway at Heathrow. Why not move to Doncaster airport. Plenty of space. HS2/3 will be close by. Right on the motorway network. Near enough in the middle of UK. Close to railport at Doncaster. Support the North of the country and slow down the concentration of resources on London and south east.