An Agenda for Business to Support Consumers Through the Cost of Living Crisis

While government action is vital to overcoming the cost of living crisis, Which? also believes businesses across essential services can – and should – do more to help. We understand the inflationary pressures businesses face, but also know the power businesses have to make consumers’ lives better. This briefing presents our agenda for businesses to support consumers through the cost of living crisis.

As one of the leading organisations advising UK consumers on cost of living issues we see first-hand how consumers experience rising costs. Those households already struggling and vulnerable bear the brunt as essential goods and services consume a relatively higher proportion of their lower incomes; but no group is left untouched, with virtually all consumers affected adversely.

Which? has identified a range of specific actions businesses in these sectors can take to support consumers, both those who are financially struggling and vulnerable and those who are managing but need to keep a closer eye on their budgets. We invite you to join us in our campaign and to share your experiences of best practice and ideas about the ways that businesses can support consumers through the cost of living crisis.

Introduction

The cost of living crisis is the biggest financial challenge facing UK consumers and businesses since the 2008 banking crisis. Rocketing energy prices have pushed inflation into double digits for the first time in 40 years, with millions of households facing fuel poverty and the Bank of England confirming a recession that will make life harder for consumers all over the UK. 

While government action is vital, we also believe businesses across essential services can – and should – do more to help. We understand the inflationary pressures businesses face, but also know the power businesses have to make consumers’ lives better. This briefing presents our agenda for businesses to support consumers through the cost of living crisis.

As one of the leading organisations advising UK consumers on cost of living issues we see first-hand how consumers experience rising costs. Those households already struggling and vulnerable bear the brunt as essential goods and services consume a relatively higher proportion of their lower incomes; but no group is left untouched, with virtually all consumers affected adversely.

Energy price increases are the undisputed leading factor in the pressure on consumer budgets, closely followed by increases in food prices, while broadband connectivity is an area of spending for which consumers will often make sacrifices in other parts of their budget [1].

Which? has identified a range of specific actions that businesses in these sectors can take to support consumers, both those who are financially struggling and vulnerable and those who are managing but need to keep a closer eye on their budgets. 

Which? believes businesses can do more to ensure fair and transparent pricing practices that can support all consumers to shop around for the best deal that suits them; while targeting extra support at those consumers who are hardest hit. 

Summary of our calls to business

Supermarkets should:

• ensure that their pricing is clearer and more transparent, making unit pricing much more prominent, legible and consistent – and displaying it for promotional offers – so that people can easily work out what is the best deal.
• support affordability by ensuring that a range of budget lines for affordable essential items are available across their stores, and particularly in locations where people most need support.
• use their marketing budgets and promotions to tailor support to those who are struggling, including offers, vouchers and loyalty cards benefits focused on the places and households where people are most in need.

Telecoms providers should:

• enable consumers to leave their contract without penalty when prices are increased mid-contract, regardless of whether or not these increases can be said to be ‘transparent’. Telecoms providers should also carefully consider what levels of mid-contract price increases are justified, given the current economic climate. 
• ensure that social tariff customers do not incur additional charges when they are signing up; do not have to pay Early Termination Charges (ETCs) to move to a social tariff if they are currently in contract, and are not subject to set-up costs.
• increase awareness of the availability of social tariffs, what they offer and how they differ to commercial tariffs.

Energy companies should:

• take action to make energy bills as clear and easy to understand as possible, empowering customers to understand what they are paying and why.
• ensure customers on prepayment meters, who are more likely to be vulnerable and on lower incomes, are able to access government support; and implement an automated delivery system as soon as possible by prioritising them in their smart meter roll-outs where appropriate.
• set out proactively how they will support the increasing numbers of customers likely to be seeking support during this crisis; making it as easy as possible for customers to get in touch to seek support when they need it.

Context on consumer harm

According to our monthly Consumer Insight Tracker, consumers’ financial difficulty levels have been on an upward trend, and are now at some of the highest levels recorded in the ten years the survey has been running [2].

An increasing number of households are showing signs of financial distress. In September,  8.9% of households reported having missed a mortgage, rent, bill or credit payment in the last month, equivalent to approximately 2.5 million households. Far larger numbers are taking action to cope with squeezed finances. 65% of households have made an adjustment to cover essential spending, such as cutting back, dipping into savings or borrowing more. This is the highest adjustment level recorded since the survey began in 2012 and a substantial increase of 23 percentage points compared to a year ago.

Two-thirds of households made at least one adjustment to cover essential spending in the last month

However, the harm to consumers goes far beyond the financial, with the crisis taking its toll on people’s emotional state. A quarter (26%) of people told us that they have had trouble sleeping due to thoughts about the rising cost of living, while 18% had experienced physical symptoms of stress and anxiety (tense muscles, a racing heart or feeling shaky or sweaty). 

“I feel very stressed and anxious all the time and struggle to sleep, which is making me ill.” 

- Female, 35

“I worry and have trouble sleeping, especially about the energy prices, I worry that I won’t be able to afford to put the heating on.” 

- Female, 59

“It’s like a financial lockdown. Parts of my life, of my dreams and aspirations for the future, are being put on pause, possibly indefinitely. There are parts of my life up until now that I can no longer afford to have.” 

- Male, 59

Consumers are taking widespread action to cope with higher prices, making changes to their behaviour to reduce their spending on food, energy and leisure. The scale of the crisis will inevitably place increasing pressure on the public and charities this coming winter. It will also be critically important that the businesses consumers interact with, especially in essential markets such as energy, food and telecoms, act responsibly to support struggling households and ensure they are fairly treated. 

Supermarkets

Food inflation has rapidly increased over the past year. Food and non-alcoholic beverage prices rose by 13.1% in the 12 months to August 2022 [3].

Kantar’s recent analysis found that consumers were paying £571 more on average for their groceries compared to last August [4]. Those on the lowest incomes are especially hard hit by higher food prices because they spend a greater proportion of their income on food. Households with the lowest 10% of incomes spend 18% of this on food and non-alcoholic drinks, this compares to 14% for all households and 12% for the richest 10% [5].

The reasons for rising food prices are complex: there is no easy solution to bring them down in the short to medium term. Making the UK’s food system more sustainable and resilient and better able to withstand shocks requires a long-term commitment and joined-up strategy by government, in line with the report from the Government’s independent adviser, Henry Dimbleby [6].

However, there is scope for supermarkets to step up. Against the current backdrop, it is essential that people can easily compare prices so that they can buy the product that is the best value for their needs; and that those who are particularly struggling get the support that they need from the supermarkets where they shop, as well as from the Government.

Call 1

Supermarkets should ensure that their pricing is clearer and more transparent, making unit pricing much more prominent, legible and consistent – and display it for promotional offers – so that people can easily work out what is the best deal.

Which? research monitoring unit pricing has found that there can be a lot of savings to be made if consumers can work out which offer is best value – but unclear supermarket pricing means people are unnecessarily left struggling to find the best deal.

Every month, Which? compares how much the UK’s biggest supermarkets charge for a trolley of grocery items [7], including everything from bread to toothpaste. In August, we found that Aldi was the cheapest overall with our shop costing £76.24 on average, beating rival discounter Lidl by £1.66. We compared 49 popular groceries, including own-label and a small number of branded items. The same shop at Waitrose was £102.20 on average, meaning it was £25.96 more than at Aldi.

The law requires unit prices to be displayed [8] for most foods and groceries to show how much different products would cost if they were sold in packs of the same weight or volume.  This enables people to work out which is the best value option when products are sold in different-sized packets – and when manufacturers reduce pack sizes, known as ‘shrinkflation’.  Unit prices should be “unambiguous, easily identifiable and clearly legible”.

Our research has shown that when the unit pricing is easy to work out, large savings can be made depending on the size you need and buy. For example, we found that own label semi-skimmed milk could be a 133% more for the same amount if you buy a 500ml bottle compared to a 2.27-litre bottle; you could pay 85% more if you buy a 266g pack rather than a 600g pack of milk chocolate digestive biscuits and you could pay 346% more if you buy four 250ml glass bottles of Coke compared to a 1.5-litre bottle.

A recent Which? investigation [9] found, however, that supermarket unit pricing is often unclear, inconsistent or just absent. We visited nine supermarket stores and found a range of unit pricing issues, including unit pricing that was very hard to read, different units used for the same or similar products and missing information, including on promotional offers and loyalty card discounts. We also found issues with the stores’ websites, mainly relating to how unit pricing was displayed on special offers.

A recent Which? survey found that consumers can struggle to work out which is the cheapest option. We asked 2,000 UK adults to choose what they thought was the cheapest option in a range of soft drinks, per 100ml using real examples of the same product sold in different sizes from the websites of Tesco, Asda and Morrisons. 66% of people couldn’t pick the cheapest Fanta Orange Zero; 79% in the case of Diet Pepsi and 72% for Diet Coke.

While some improvements to unit pricing lie in the Government’s hands – including improving consistency – most of the problems we found could be addressed by supermarkets through their own policies and systems. 

Call 2

Supermarkets should work to ensure a range of budget lines for affordable essential items are available across their stores, and particularly in locations where people most need support.

Recent Kantar analysis found that sales of own-label value products increased by 19.7% in the month up to 7th August 2022 as people shopped for cheaper options [10]. Analysis by Which? earlier in the year, however, suggested that budget line ranges had become less available in supermarkets overall [11]. We looked at the prices of more than 21,000 groceries across two years, comparing the average prices at eight major supermarkets between the start of December 2021 and the end of February 2022 with the same period two years previously. The research looked at how often budget own-brand items were out of stock and found they were unavailable on three times as many days during the most recent three-month period, compared to two years previously.

 Different supermarkets appear to be approaching this in different ways. Data from Assosia suggests that supermarkets have reduced their ranges compared to August 2021 and highlights Tesco for reducing its value range over the last year [12]. Asda recently launched a Just Essentials range of around 300 products to be available across its stores, but has had to ration purchases until its stocks improve, reflecting the strength of demand.

It is therefore important that, as people are trading down and looking for ways to save money, supermarkets offer budget ranges on everyday items, ensuring that they are available – and that the breadth of their range supports people in making healthy as well as affordable purchases. This is particularly important in areas where people are likely to be hit the hardest by the cost of living crisis.

Call 3

Supermarkets should tailor their marketing budgets and promotions to support those who are struggling, including offers, vouchers and loyalty cards benefits focused on the places and households where people are most in need.

There is a real opportunity for supermarkets to support consumers – and particularly those who will be struggling the most – through the types of promotions and offers they provide.  For those who are most vulnerable, including people who are relying on the Healthy Start Scheme or Scottish Best Value foods card, supermarkets should be looking at how they can support uptake, as well as provide additional support. One study has shown overall uptake is only 64 per cent in England and as low as 47 per cent in one local authority [13]. Supermarkets in these areas should be looking at how they can incentivise uptake; and how they can provide eligible consumers with additional discounts and top-ups.

Supermarkets should consider how they can use their promotions to support those who are struggling financially – whether through use of loyalty cards where they have them, in-store promotions, vouchers or coupons, for example – with a particular focus on places of most need. It is important that promotions also support people in making healthier choices. Some supermarkets have already announced that they will stop putting multi-buy offers on foods that are high in fat, sugar and salt and will focus on healthier promotions.

Telecoms

Access to good quality connectivity is essential for consumers, but analysis of Ofcom data shows that the number of households that have had affordability issues [14] in the past month increased by 20% from February 2022 to April 2022. Telecoms prices have also increased for many consumers as a result of many broadband and mobile providers implementing price increases that exceed inflation earlier this year [15].

 In April 2022, one in eight households said they had reduced their spending on other items, such as food or clothes, to be able to pay for connectivity – an increase of five percentage points from February 2022 [16].

The effects of rising connectivity costs have disproportionately affected lower-income households and the financially vulnerable [17]. These households may find that commercial tariffs are too expensive, and also come with additional costs, such as connection costs, mid-contract price rises and exit fees if they need to leave a contract early.

Social tariffs – offered by some providers to help support those struggling with affordability by offering lower prices than those available commercially – can significantly reduce the proportion of disposable income that low-income households spend on broadband and mobile services, enabling them to remain connected.

Despite most UK households having access to a provider which offers a social tariff, consumer awareness and adoption of these tariffs remains low. In February 2022, Ofcom reported that just 1.2% of eligible households had taken up a social tariff. Government and Ofcom have been encouraging social tariff providers to do more to raise awareness of these tariffs while the DWP has introduced an API (Application Programming Interface) to make the eligibility-checking process for social tariffs easier for both consumers and providers [18].

Which? analysis of Ofcom data highlights that it is not just those on low incomes who are facing affordability challenges. The rate of increase in those households reducing spending elsewhere to afford connectivity services was greatest for those households on middle incomes (£26,000– £51,999), almost doubling between February and April 2022 [19]. This means that households on and below median incomes (£31,400) are increasingly struggling to find leeway within their budgets for all their essential needs.

While providers have taken a number of positive steps to help consumers in this market, Which? believes that more can still be done to help ensure that consumers are well-supported and stay connected during the current crisis. 

Call 1

When telecoms providers increase prices mid-contract, consumers must be able to leave their contract without penalty, regardless of whether or not these increases can be said to be ‘transparent’. Telecoms providers must carefully consider what level of mid-contract price increase is justified,  given the current economic climate.

The punitive exit charges charged by telecoms providers when prices increase mid-contract are not fair – consumers need greater flexibility when faced with price increases. Given the current circumstances, providers must give careful consideration to the level of mid-contract price rises that can be justified.

The majority of the UK’s largest telecoms providers increase the prices charged to both in, and out, of contract customers on an annual basis (usually in April). If the contract terms and conditions set out these price variation terms in a ‘sufficiently prominent and transparent’ way, then customers have no right to exit their contract without penalty [20].

Many providers now increase prices by a measure of inflation (usually CPI) plus an additional 3.7-3.9%. Consumers can be exposed to such increases when they still have many months remaining on their contract, leaving them subject to increases on multiple occasions during their contract [21].

Given historic and forecast inflation, this means that consumers who took out a two-year broadband contract after April 2021 would have faced an increase of around 9.3% in April 2022 and could be looking at a further increase of 17% in April 2023 [22]. Before implementing these increases next year, providers must carefully consider the economic climate and whether such significant increases can be justified. Currently, customers affected by these mid-contract price increases have no option but to absorb them or face exit fees, which can be significant.

In 2020, 47% of broadband customers had re-contracted with their existing provider, and 18% were new customers (i.e. they had switched) – this means that almost two-thirds of consumers could be in line to receive a mid-contract increase, without any right to exit [23].

The main harm to consumers here is likely to be financial, as consumers who are still within their minimum contract period will have to pay the increased price for the remaining duration of the contract, without any ability to exit without penalty i.e. the customer will have to pay exit fees [24]. At present, this financial harm can be significant, due to the high level of inflation, and particularly in the context of increasing numbers of households facing affordability issues when it comes to their telecoms services [25].

Which?’s concern is that consumers are trapped in contracts with no right to exit when price increases are deemed to be ‘transparent’ within contract terms and conditions. It is not fair that consumers are forced to pay exit fees if they want to leave their contract when faced with these punitive price increases. Particularly given the current circumstances, these price rises could unfairly burden people’s household finances and leave them in a difficult position in terms of affordability. 

Call 2

Telecoms providers must ensure that social tariff customers do not incur additional charges when they are signing up; must not have to pay Early Termination Charges (ETCs) to move to a social tariff if they are currently in contract, and must not be subject to any set-up costs or delivery fees.

Communications Providers (CPs) should not be charging customers moving to a social tariff ETCs or other one-off costs (such as set-up and delivery fees). This will help ensure that those who are eligible for social tariffs are able to move to one without incurring additional costs or barriers to adoption. 

By their very nature, social tariffs are targeted at those consumers who are on low incomes who may not have the means to pay ETCs in order to leave their current telecoms contract. If ETCs need to be paid in order to move to a social tariff, the consumer may end up going into debt on their existing contract (as opposed to moving to the social tariff), or be forced to exit their current contract without being able to afford to take out a new one. These options could lead to consumer harm and risk leaving the consumer without access to connectivity. 

It is critical that all providers take action to ensure that all eligible customers are able to move to social tariffs without charge or penalty [26]. While this was included in the commitments made in June 2022 by the Government and industry, it is not explicitly required of providers. The ability to leave without incurring exit fees if a customer is eligible for a social tariff should also be made clear to customers as part of the information provided on CPs web page, which explains the social tariff offer (see Call 3 below). Which? understands that the DWP API may make this more feasible for providers to do.

Consumers may wish to leave their current provider because they do not offer a social tariff,  but would be eligible for one with another provider. While Which? understands that letting such customers leave their contract without penalty comes with a number of potential issues, including the inability to verify eligibility, Which? encourages those providers to consider how they can help such customers and identify if there are ways in which they could waive ETCs in such circumstances. 

In addition to ETCs, Which? believes that providers should not be charging those on social tariffs other one-off costs, such as delivery charges or set up costs, which are another burden on a consumer who is already financially vulnerable and may make the social tariff offer less attractive to them.

Call 3

Telecoms providers must increase awareness of the availability of social tariffs, what they offer and how they differ from commercial tariffs.

Social tariffs can offer eligible customers a range of benefits, beyond cheaper prices. This can make these tariffs more attractive than those available commercially e.g. no mid-contract price rises, no exit fees if they leave the contract early. Much is already being done to raise awareness of social tariffs, although providers could still look to do more in this area. Which? believes that providers should also do more to highlight the benefits these tariffs offer, and why eligible consumers should consider taking advantage of one. 

Which? recognises that social tariffs across a wide range of providers have been designed in a way to give customers significant amounts of flexibility and certainty - recognising the situations that those who are eligible may be in. Currently, the range of consumer benefits that a social tariff offers is often unclear on provider websites, and in social tariff marketing. The benefits should be made clear to eligible consumers so that they can easily weigh up price and non-price-related elements of social tariffs, alongside commercial offers.

Energy companies

Although the government has announced welcome plans to freeze energy prices, a typical household will still be paying around 60% more for energy than last year, even with the £400 energy bill support. This means there remains a key role for energy suppliers in supporting customers through this difficult time.

Call 1

Energy companies must take action to make energy bills and their components as clear and easy to understand as possible, and empower customers to understand what they are paying and why.

At a time when 93% of consumers are concerned about energy prices [27], it is more important than ever that energy companies do everything they can to help consumers understand what they are paying and why. But in our 2022 energy customer survey, several of the larger providers (including British Gas, EDF, Shell, and SSE) received only three stars for the clarity of their statements, while Scottish Power and EON received just two stars [28].

And when Which? presented over 2,000 UK consumers with a mock energy bill in August 2022, two in five (41%) identified areas that they found confusing. They struggled the most with the terms ‘kilowatts per hour’, the use of the term ‘credit’, and the calculations for electricity used, unit rate and standing charge. When we asked if they could explain what a standing charge meant on their energy bill, only a quarter (28%) of the country were able to correctly state what it meant [29].

Participants in our Which? Consumer Insight Panel expressed frustration at their struggle to decipher bills: 

“So yes, the energy bills and the gas bills, just generally, they are a nightmare. Like the kilowatts per hour, whatever they’re measuring, it’s just like, “Wow, oh my God, where do they come up with all this stuff?”  It just really is… So yes, I find it a nightmare.” 

“If I try to work it out, I just find myself getting really angry, especially with the things that I can’t control like the costs that are like… I think it’s the daily standing charge or something [30].”

Concerningly, this frustration may lead to consumers engaging less with energy bills, reducing their awareness of charges, and ability to manage them, potentially increasing the risk of difficulties as bills soar.

“I kind of ignore them (bills). We pay by direct debit. I understand they need paying. It happens automatically. I try not to look at the numbers too hard because I don’t want to get stressed about it.”

“I’d say I’m in the dark mostly, I wouldn’t know if I’m being overcharged. I wouldn’t know if it’s justified, those costs. I guess, for me, there’s no way to check other than if you benchmark and you do a cost comparison [31].”

Call 2

Energy companies must ensure that customers on prepayment meters, who are more likely to be vulnerable and on lower incomes, are able to access the government support they have been promised, and implement an automated delivery system as soon as possible by prioritising these customers in their roll-out of smart meters where appropriate.

Given the clear benefits that smart meters can bring to millions of the most financially vulnerable energy customers, we are calling on suppliers to set ambitious smart meter installation targets for prepayment customers, and to take proactive steps to maximise take-up among this group. They should also take steps to ensure that customers have a positive experience throughout both the installation and usage of their smart meter.

Prepayment meter customers are likely to be in particular need of support to pay their bills. Of the 4.1 million electricity customers and 3.3 million gas customers on prepayment meters [32], 41% of these customers have health issues, and 59% of households with a prepayment meter are in receipt of benefits [33]. They are significantly more likely to be young (18–35), disabled, a single parent or live in rented housing [34].

But only around 40% of prepayment meters are in smart mode [35]; and the two million energy customers still on traditional prepayment meters [36] may struggle to access the support due to them because – unlike other customers – many will receive the energy bills discount via vouchers delivered by post, email or text which will need to be redeemed at top-up points (e.g., PayPoint outlets and Post Offices).

This could lead to customers missing out on vital support, if vouchers are lost, not received or stolen, or difficult to redeem, or if customers do not open the communication or redeem the voucher for fear of fraud. 

Energy companies have a responsibility to ensure that customers receive their vouchers, the information and support they need to redeem them; and to monitor voucher redemption. They should have proactive plans in place to support prepayment meter customers who are not successfully redeeming their vouchers, to ensure that they are able to access the discount. 

They should also work with the Government to put in place an automated financial support solution to reduce the burden on the most financially vulnerable energy customers by prioritising prepayment customers in their roll out of smart meters and supporting customers to take up this offer, including by addressing any concerns and ensuring no credit is lost during the switching process.

Replacing traditional prepayment meters with smart meters would allow the energy bill discount to be automatically credited to customers’ meters; and enable prepayment customers to top up their meters more conveniently through an app or website. In turn, this would help address inadvertent self-disconnection through customers forgetting to top-up their meter, or not realising it is low on credit [37]. Using smart prepayment meters, energy companies would also be able to track these customers’ energy usage and credit levels more easily, enabling them to provide support at an earlier stage [38].

The Government requires energy companies to roll out smart meters to all remaining non-smart customers by the end of 2025 [39]. However, there are currently no requirements for prepayment customers to be specifically prioritised within energy company targets.

Call 3

Companies should set out the proactive steps they are taking to ensure they have the resources in place to support their customers through this time of crisis. Suppliers must make it as easy as possible for customers to get in touch to seek support when they need it.

Customers worried about being able to pay their energy bills are advised to contact their supplier so that support measures such as affordable payment plans and access to hardship funds can be put in place. In this time of crisis, more customers than ever before are likely to need to seek help from their energy supplier. 

However, energy companies’ customer support services may not be prepared for the expected increase in demand, or be able to provide the standard that consumers expect. 

Even before the cost of living crisis, waiting times were often lengthy. Which? surveyed 8,803 people in October 2021, around 60% of whom had contacted their energy provider in the previous year. Of these, a third of customers using phone contact said they had to wait a long time to be answered, and 17% said they were passed around between lots of people. Concerningly, one in eight (12%) of those who had contacted their energy provider never got a reply, and one in five told us they couldn’t get their question answered by their energy company [40].

Ofgem data shows that in the first three months of 2022, customer satisfaction with the overall market fell to its lowest level since the survey began in 2018 [41], while the proportion of customers finding it very or fairly easy to contact their supplier dropped to just 48% [42].

Which? has also heard of consumers spending months trying to get queries resolved. One customer, Alka, was informed that her direct debit was due to increase by hundreds of pounds more than she was expecting, and got in touch with her energy company, Eon Next. 

“It took multiple emails over several months for the problem to eventually be resolved,”  she told Which?. “Each time I was put in touch with a new customer service advisor, it seemed like they weren’t reading my previous messages, so I had to explain my query again from the beginning each time. It felt like I was going round in circles.

“It was incredibly frustrating. Companies should be expecting more of these types of query as prices increase and be better prepared to deal with them, including by training staff better.” 

Another customer, Wilfrid, struggled to get in touch with his energy company British Gas when he received an unexpectedly large bill. “I rang them up and spent nearly an hour on hold. When I eventually got through, they withdrew their demand for payment.” Several months later, Wilfrid was informed of a dramatic increase to his direct debit payments, and again struggled to speak to anyone – “I tried to ring them to seek an explanation, but as they told me the queueing time was approximately one hour, I didn’t pursue the issue.” Wilfrid believes that “companies should ensure there are shorter call waiting times, and provide a clear timeline for dealing with queries.”

It is also important that customers are able to get in touch with their energy company easily and conveniently, at a time and via a method that best suits them. Recent Which? research found that consumers most want to see email address details (68%) and telephone numbers (66%) on their energy bills, and this should be something that is consistently present across all energy providers’ bills. There was also clear interest in other contact options – 49% wanted to see a website address, 35% internet chat, 11% a QR code and 10% Facebook Messenger [43].

Companies should also review their websites, bills and other customer communications to ensure that their contact details are prominently displayed and easy for customers to find. For customers who are in financial difficulty and in need of urgent help, there should also be measures in place to ensure they can access specialised support swiftly.

Conclusion

Businesses alone cannot solve the cost of living crisis. Only wide-ranging action between The Government, the private sector and civil society can do that. But companies do have the power to make a real difference for consumers, and this agenda is a blueprint for action. Even when they are unable to lower prices, businesses can support all consumers through fair and transparent pricing; and the hardest hit through targeted support.

Which? will continue championing consumers throughout the cost of living crisis by calling for support from the Government, providing advice to consumers, and working with businesses to find ways they can help. We invite you to join us in our campaign and to share your experiences of best practice and ideas about the ways that businesses can support consumers through the cost of living crisis.

Footnotes

[1] Affordability of telecommunications services  ↑

[2] Which? Consumer Insight Tracker, online poll of 2,075 consumers conducted between 9 and 11 September 2022. The Consumer Insight Tracker has run regularly since 2012 and covers consumer confidence, finances, worries and trust in business. The sample is weighted to be nationally representative of the  adult population of the UK  ↑

[3] Consumer Price Inflation, UK, ONS, August 2022  ↑

[4] Kantar, Big four line-up changes as UK grocery price inflation accelerates again, 13 September 2022  ↑

[5] Family spending workbook 2: expenditure by income, ONS, 2022  ↑

[6]  National food Strategy: Independent Review, The Plan, July 2021  ↑

[7] Which? Supermarket price comparison  ↑

[8] Price Marking Order 2004  ↑

[9] The big savings you could easily miss, Which?, September 2022  ↑

[10] Kantar, Grocery price inflation hits new peak as Brits navigate £533 annual increase, 16 August 2022  ↑

[11] The truth about food inflation, Which?, June 2022  ↑

[12] The Grocer, Why – and where – supermarkets are making range cuts  ↑

[13] Feeding Britain: Increasing Healthy Start Uptake: A Feeding Britain Case Study, Feeding Britain,  2019  ↑

[14] Ofcom, Communications Affordability Tracker. Affordability issues include cancelling a service, making changes to a service, reducing spend elsewhere, missed payment, made changes to a payment method  ↑

[15] For many providers, the increase was in excess of 9% in 2022  ↑

[16] Which? Analysis of Ofcom affordability tracker  ↑

[17] For lower-income households (with an annual income of up to £25,999 per year), the proportion of households that reduced spending elsewhere to afford connectivity services was 22% in April 2022  ↑

[18] Gov UK: Cheaper broadband for struggling families: 14 August 2022 ↑

[19] Which? Analysis of Ofcom’s Affordability Tracker  ↑

[20] Note that some providers implement discretionary price increases - in these instances customers are able to leave without penalty  ↑

[21] Recognising that a telecoms contract cannot exceed 24 months  ↑

[22] This is based on the Bank of England forecast inflation rate of 13.1% for Q4 2022  ↑

[23] The remaining 35% are out of contract and can therefore leave without penalty. Note that not all 65% would be unable to leave without penalty as the nature of Virgin Media Broadband and Sky broadband price increases mean that customers can leave without penalty. In addition, some smaller providers do not impose mid-contract price rises e.g. Hyperoptic and Zen Internet  ↑

[24] The exit fees charged will depend on the number of months of the contract remaining and the calculation of these also vary by provider – for example, TalkTalk charges around £10.20 for each month of the contract remaining, while others calculate them using a formula based on number of months remaining multiplied by monthly cost (i.e. outstanding amount to pay) less costs saved by the customer leaving early less an early repayment discount  ↑

[25] Which? Analysis of Ofcom’s Affordability Tracker  ↑

[26] Gov UK: Telecoms industry agrees to new cost-of-living plan following government summit led by Digital Secretary Nadine Dorries  ↑

[27] Which? Consumer Insight Tracker, online poll of over 2,000 people conducted from 12th-14th August 2022. The sample is weighted to be nationally representative of the adult population of the UK  ↑

[28] Which? Best energy suppliers for 2023  ↑

[29] Yonder, on behalf of Which?, conducted an online survey of 2,089 nationally representative UK adults between 22–23 August 2022. Data was weighted to be representative of the UK population by age, gender, region. A coding framework was used to identify which verbatims gave partial or fully correct answers  ↑

[30] Participant verbatims from our Which? Consumer Panel Insights  ↑

[31] Participant verbatims from our Which? Consumer Panel Insights  ↑

[32] Ofgem: Consumer Protection Report Autumn 2021  ↑

[33] Citizens Advice: Improving support for prepayment consumers who’ve self-disconnected, Citizens Advice  ↑

[34] Gov UK: Government response to the technical consultation on the Energy Bills Support Scheme  ↑

[35] Ofgem: Consumer protection report 2021 p34  ↑

[36] House of Commons Business, Energy and Industrial Strategy Committee: Energy pricing and the future of the energy market  ↑

[37] Citizens Advice: Switched on improving support for prepayment consumers who’ve self disconnected  ↑

[38] House of Commons Business, Energy and Industrial Strategy Committee: Energy pricing and the future of the energy market  ↑

[39] Ofgem: Smart meter transition and the Data Communications Company (DCC)  ↑

[40] Online survey of 8,803 members of the public, conducted by Which? in October 2021. Further details and results can be found on 'One in eight experience energy customer service delays' ↑

[41] Ofgem: Outcome of 2022 review into whether conditions are in place for effective competition in domestic supply contracts  ↑

[42] Ofgem: Our interactive customer service indicators  ↑

[43] Yonder, on behalf of Which?, conducted an online survey of 2,089 nationally representative UK adults between 22-23 August 2022. Data was weighted to be representative of the UK population by age, gender, region  ↑

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Which? is the UK’s consumer champion, here to make life simpler, fairer and safer for everyone. Our research gets to the heart of consumer issues, our advice is impartial, and our rigorous product tests lead to expert recommendations. We’re the independent consumer voice that works with politicians and lawmakers, investigates, holds businesses to account and makes change happen. As an organisation we’re not for profit and all for making consumers more powerful.