Government Presents New Plans to Help Consumers Switch

Today the Department for Business, Innovation & Skills released their ideas for a set of principles, aimed at making it easier for consumers to switch provider for a number of services, including telephone, broadband, and mobile. Research conducted by the Government has shown that more than three-quarters of consumers have never switched their mobile phone provider, and more than two-thirds have never changed broadband supplier.

Business Minister Nick Boles, who developed the plans, said: “All too often families miss out on hundreds of pounds of potential savings because they think it will be too complicated or take too long to switch.”

The six ‘Switching Principles’ as they are called, are as follows:

  1. Switching should be free to the consumer unless they are aware of and have consented to reasonable restrictions and charges to do so.
  2. The switching process itself should be quick, at an agreed date.
  3. The switching process should be led by the organisation with most interest in making the switching process work effectively – the gaining provider.
  4. Consumers should have access to their consumption or transaction data. This should be in a format that can be easily reused and they should be able to authorise third parties such as comparison sites to access their data to help them to switch.
  5. Sites and tools providing comparisons to consumers that receive payments from suppliers should make clear where this affects the presentation of results.
  6. There should be an effective process for consumers to get redress if anything goes wrong in the switching process
    The Government have launched a consultation seeking the views of small businesses, regulators, and consumers regarding these new principles. They aim to understand the best way to see the adoption of these principles, as well as gather further information to inform future government policy on the issues of switching providers and consumer protection.

If you are interested in giving your views on the ‘Switching Principles’, fill in the Government’s online survey, found here.