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Welcome to the May 2026 issue of the policythinking.co.uk Consumer Policy Monitor. This month's edition covers developments across energy markets and financial services regulation as policymakers and regulators advance a range of measures affecting household costs and consumer protections. Readers will find analysis across our seven standing sections, from housing and water to debt, AI, and competition policy.
Energy
The UK government announced upgrades to heat networks intended to reduce energy bills for families, hospitals, and charities through improvements in energy efficiency. [DESNZ]
Ofgem has been appointed as administrator for the bill discount scheme, replacing the previous arrangements. [DESNZ]
*****
Monthly quiz
Name one of the US presidents described by The Simpsons as “adequate, forgettable…occasionally regrettable.”?
What is the nickname of Northampton Town FC?
In which London borough was singer-songwriter Raye born?
What is the longest river in Asia?
Whose catchphrase was, “Your bullets cannot harm me - my wings are like a shield of steel.”
See end for answers.
*****
DESNZ published official statistics in development on sub-regional fuel poverty, using 2024 data, as part of the 2026 sub-regional fuel poverty report series. [DESNZ]
DESNZ published guidance setting out the exemptions available under the Private Rented Sector minimum energy efficiency standard, along with the evidence requirements landlords must meet to qualify. [DESNZ]
Power NI and Firmus Energy announced price increases for their customers in Northern Ireland, attributing the rises to higher global energy and gas prices. [BBC News]
Household energy bills in Great Britain are set to rise by 13% from July 2026, with wholesale cost increases linked to the US-Israel conflict with Iran feeding through to consumer prices for the first time. [BBC News]
Ofgem announced a 13% increase in the energy price cap for the period 1 July to 30 September 2026, applying to customers on default tariffs. [Credit-Connect]
Cornwall Insight's final forecast for the July–September 2026 Default Tariff Cap projected that bills for a typical dual-fuel household would rise by £209 to £1,850 a year. [Credit-Connect]
Ofgem closed its investigation into British Gas over the force-fitting of prepayment meters without customer consent, with the company set to pay a settlement to affected consumers. [Credit-Connect]
Energy UK's Deputy Director of Policy, Ned Hammond, noted that the July–September price cap announcement confirmed an anticipated rise in customer bills following Ofgem's decision. [Energy UK]
Christians Against Poverty published an explainer for its clients on the 2026 energy price cap changes and their implications for household energy costs. [Christians Against Poverty]
Which? published consumer guidance advising households to review their tariff and take steps to reduce gas and electricity bills ahead of the July 2026 price cap rise. [Which?]
Ofgem published a cyber security strategy setting out a roadmap for government, regulators, and industry to strengthen cyber resilience across the Great British energy sector in support of the Clean Power 2030 target. [Ofgem]
DESNZ reported that solar panel adoption among UK households continued to rise as the government advanced its clean power programme. [DESNZ]
Financial Services & Banking
The FCA has warned young drivers that fraudsters are selling fake motor insurance through social media platforms, leaving buyers unknowingly uninsured and at risk of prosecution. [FCA]
The government introduced a Financial Services Bill to Parliament, designed to unlock investment, reduce regulatory burdens, and strengthen consumer protections across financial markets. [HM Treasury]
The Chancellor announced plans to grant consumer watchdogs new investigatory powers to tackle profiteering by firms in markets where prices are judged to be unjustifiably high. [HM Treasury]
HM Treasury commissioned an independent review to assess how reductions in in-person banking services are affecting consumers' access to banking, with findings expected to inform future policy. [HM Treasury]
Fraudsters are exploiting uncertainty over new inheritance tax rules on pensions, contacting savers and offering to move pension funds into purportedly tax-efficient schemes that are, in practice, scams. [The Guardian]
Consumers who subscribed to the Claude AI chatbot have reported unexplained additional charges appearing on their credit card statements, with one family's experience pointing to wider billing irregularities. [The Guardian]
The government confirmed plans to modernise the Consumer Credit Act for the first time in over 50 years, aiming to update disclosure requirements and give lenders more flexibility to develop new products. [Credit-Connect]
Mortgage repayments in the UK reached 21.3% of gross income, their highest level in nearly 20 years, according to UK Finance, with 723,000 households completing house purchases in the period covered by the data. [Credit-Connect]
An FCA review of firms authorised to approve financial promotions found that some are not meeting required standards, and the regulator has indicated that further action may follow where shortcomings persist. [FCA]
The FCA published a review examining whether the claims management market is functioning effectively for consumers, assessing firm conduct, pricing practices, and outcomes for claimants. [FCA]
The government announced reforms to the bank ring-fencing regime intended to free up capital and enable banks to extend billions of pounds in additional financing to British businesses. [HM Treasury]
HM Treasury published its conclusions from the Ring-Fencing Review, setting out proposals to reform the regime that has required large retail banks to separate core consumer banking from investment banking activities since 2019. [HM Treasury]
Water
Public trust in water companies in England has reached a new low, according to a recent report, with customer concerns centred on the fairness and affordability of bills. [Credit-Connect]
Debt & Personal Finance
The Insolvency Service published its monthly individual insolvency statistics for April 2026, covering bankruptcies, debt relief orders, and individual voluntary arrangements in England and Wales and Northern Ireland. [Insolvency Service]
Citizens Advice reports that 4.6 million people are worried about affording energy bills, with rising costs affecting households that have not recovered financially from the previous energy price crisis. [Citizens Advice]
Research from Which? found that three million households are skipping meals and cutting back on family visits, with its Consumer Insight Tracker also recording a fall in confidence in the economy. [Credit-Connect]
Barclays has announced an additional investment of almost £4 million in debt charity StepChange, building on an existing long-term partnership and a history of regular financial contributions. [Credit-Connect]
StepChange has warned that a rise in the energy price cap of over £200 is likely to deepen existing energy debt among households, with the charity projecting an increase in the number of clients presenting with energy arrears. [StepChange]
The Pensions Commission published its interim report on 19 May, finding that Britain is undersaving for retirement and setting out the principal challenges facing the current system ahead of further work on potential reforms. [DWP]
The Department for Work and Pensions has appointed Joanne Segars OBE as the new Chair of the Pension Protection Fund, with her tenure beginning on 1 July 2026. [DWP]
DWP has issued a call for evidence on behalf of the Timms Review steering group, seeking feedback on the Personal Independence Payment system in line with the review's published terms of reference. [DWP]
DWP has published a draft Code of Practice covering the direct deduction and disqualification from driving order powers introduced under the Public Authorities (Fraud, Error and Recovery) Act 2025. [DWP]
DWP published its latest estimates of fraud and error levels in the Great Britain benefit system, presenting figures on the scale and composition of overpayments and underpayments. [DWP]
DWP has published guidance for claimants who received a lower level of benefit following migration to Universal Credit because of an incorrect decision to end a legacy benefit, explaining how to apply for a one-off payment under the Successful Legacy Appeals Compensation Scheme. [DWP]
DWP has updated its guidance on Universal Credit for homeless people and those at risk of homelessness, including information for the organisations that support them. [DWP]
DWP has published guidance explaining how Universal Credit operates for self-employed claimants, including requirements to report income and expenses on a monthly basis. [DWP]
The Insolvency Service has published guidance for directors on personal guarantees, explaining how such arrangements work and their implications for individuals who sign them. [Insolvency Service]
AI & Innovation
More than half of UK businesses plan to increase investment in AI over the next year, according to a Barclays survey of 900,000 firms. The report also found that 68% of companies intend to invest in cybersecurity, with geopolitical tensions cited as a factor driving both trends. [Credit-Connect]
Housing & Rental
ONS data show that renters are experiencing a higher rate of household cost inflation than mortgagors or outright owner-occupiers, whose inflation rates remain lower by comparison. [Credit-Connect]
Shelter estimates that the Renters' Rights Act, once in force, will protect around 2,000 households per month from homelessness caused by no-fault evictions. [Shelter]
The National Housing Federation has summarised the housing-related announcements from the King's Speech of 14 May 2026, setting out their implications for housing associations and social housing providers. [National Housing Federation]
The National Housing Federation responded to the King's Speech on 13 May 2026, welcoming the Social Housing Renewal Bill as a demonstration of the government's stated commitment to protecting the supply of social housing for future generations. [National Housing Federation]
An L&G survey of 2,000 UK homeowners found that moving house (48%) and buying a home ranked as more stressful life events than divorce or a relationship breakdown. [Credit-Connect]
Equity Release Council data show that total equity release lending fell to £574 million in Q1 2026, down 9% on the previous quarter (£632 million) and 14% year-on-year (£655 million). [Credit-Connect]
Shelter published a response to the King's Speech, addressing the government's housing-related legislative announcements; specific details of the charity's position were not included in the source text provided. [Shelter]
Regulatory & Competition
The CMA's May 2026 enhanced road fuel monitoring update assesses the effect of the Middle East conflict on UK road fuel prices, spreads, and margins. [CMA]
The CMA published guidance for trader recommendation platforms on how to comply with consumer law and protect consumers from misleading or deceptive practices. [CMA]
The CMA is investigating whether to designate Microsoft as having strategic market status in relation to its business software ecosystem. [CMA]
HMRC has launched an AI chatbot covering topics including tax, childcare, and apprenticeships, with Which? examining how and whether consumers should use it. [Which?]
Which? reports that around a third of people face pension poverty in retirement and notes that the government is considering changes to workplace pension rules. [Which?]
HMRC has acknowledged an error in how some state pension income is calculated on self-assessment tax returns, which may have led to incorrect tax payments for affected individuals. [Which?]
Quiz answers
You could have any of Zachary Taylor, John Tyler, Millard Fillmore, Rutherford B. Hayes or William Henry Harrison.
The Cobblers.
Wandsworth (more specifically Tooting, the best bit of Wandsworth).
The Yangtze.
The one and only Batfink.
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Welcome to the April 2026 issue of the policythinking.co.uk Consumer Policy Monitor. This month's coverage centres on two areas where regulatory activity has intensified: the energy sector, where revised pricing frameworks are moving through consultation, and financial services, where conduct standards are under active review. Across all areas we track, the pace of policy development remains steady as agencies and government departments respond to shifting market conditions.
Energy
The government announced plans to reform Ofgem, giving the energy regulator stronger powers to ensure consumers are treated fairly by energy suppliers. [DESNZ]
Ofgem data shows total energy debt reached a record £4.55 billion at the end of 2025, an 18% increase year on year, according to figures reported by Credit-Connect. [Credit-Connect]
Energy providers in Great Britain are offering customers the option to receive free electricity at times of high renewable generation through the Demand Flexibility Service, allowing eligible households to run appliances at no cost during qualifying periods. [Which?]
DESNZ published interim evaluation findings for the Warm Home Discount scheme covering 2022 to 2024, assessing the scheme's delivery and outcomes for eligible households. [DESNZ]
Cornwall Insights has forecast that a typical annual gas and electricity bill will rise to £1,929 from July 2026 under Ofgem's quarterly price cap, an increase of £288, or 18%, from the current level. [Credit-Connect]
The government announced measures to decouple electricity prices from gas prices, with the stated aim of reducing household exposure to gas market volatility. [DESNZ]
Energy UK responded to the government's gas and electricity pricing announcement, which also included measures to increase uptake of electric vehicles, heat pumps, and solar power. [Energy UK]
The Resolution Foundation published analysis of the government's proposed gas-electricity price de-linking policy, examining its implications for household energy costs. [Resolution Foundation]
The government announced an expansion of low-carbon heat networks in Wales, with the stated aim of reducing energy bills for participating households and businesses. [DESNZ]
Financial Services & Banking
The FCA has launched a review into whether annual percentage rates (APRs) are effectively supporting consumers in making informed financial choices. [FCA]
The government has announced measures to help young people locate Child Trust Funds, accounts set up on their behalf that many holders are unaware of or unable to trace. [HM Treasury]
The government announced a package of measures during London Fintech Week aimed at preparing the UK payments sector for future technological developments in financial services. [HM Treasury]
Leading lenders, in a report published by the Association for Financial Markets in Europe (AFME), have called for an overhaul of UK banking regulation, citing frustrations with the current framework. [Credit-Connect]
Haboo Money, a consumer credit engagement platform, has entered a partnership with Transave Credit Union to modernise how the credit union communicates and engages with its members digitally. [Credit-Connect]
The FCA and PRA have confirmed changes to the senior manager accountability framework, intended to reduce regulatory complexity and support economic growth. [Bank of England]
Debt & Personal Finance
The Insolvency Service has opened a consultation on options to reform the corporate civil enforcement regime, seeking views from stakeholders on how the system should be updated. [Insolvency Service]
The Insolvency Service published its monthly insolvency statistics for March 2026, covering the numbers, rates, and sectors of companies entering formal insolvency procedures in England and Wales, Scotland, and Northern Ireland. [Insolvency Service]
Turn2us published a summary of benefit rate increases taking effect in April 2026, setting out the revised payment levels across a range of welfare benefits. [Turn2us]
Christians Against Poverty published a guide to April 2026 cost-of-living changes, covering adjustments to pensions, benefits, energy prices, and related household costs. [Christians Against Poverty]
Policy in Practice issued its April 2026 newsletter covering changes to the benefit system and noted £54 million in oil support, with analysis of how the policy changes translate into practice for claimants. [Policy in Practice]
StepChange reports that almost half of adults in Great Britain are worried about paying their energy bills, according to its latest survey findings. [StepChange]
The DWP announced that tens of thousands of unpaid carers affected by unclear guidance on earnings thresholds for Carer's Allowance are to have their debts reduced, cancelled, or refunded following a government-launched reassessment of cases. [DWP]
The DWP introduced legislation on 9 April 2026 giving disabled benefit claimants the right to try work without immediately losing their benefits, aimed at removing a barrier to employment for this group. [DWP]
The DWP published a summary of the Right to Try regulations under The Universal Credit, Personal Independence Payment and Employment and Support Allowance (Amendment) Regulations 2026, setting out how disabled claimants may attempt work without their benefits being withdrawn. [DWP]
The DWP published impact and process evaluation findings for the PIP Digital Self-Serve application route, examining how the online channel has performed and its effect on claimants applying for Personal Independence Payment. [DWP]
The DWP released estimated figures for Cold Weather Payments made in England and Wales between 1 November 2025 and 31 March 2026, covering the full 2025–26 payment season. [DWP]
The DWP published statistics on the number of Universal Credit claimants with a health condition or disability that restricts their ability to work, covering outcomes from the Work Capability Assessment process. [DWP]
The DWP published the monthly Universal Credit Local Housing Allowance rates for England, Scotland, and Wales covering April 2026 to March 2027, setting the reference rents used to calculate housing support for claimants. [DWP]
AI & Innovation
Ofcom research published in 2025 found that UK adults are increasingly engaging in passive social media consumption, using AI companionship tools, and generating income through online side hustles, reflecting shifts in how people interact with digital platforms. [Ofcom]
Polling organisations are exploring whether AI-assisted data collection, which is faster and cheaper than traditional methods, can match or improve the accuracy of conventional opinion surveys. [BBC News]
Spotify does not offer users the option to filter out AI-generated music, a feature that rival streaming service Deezer has introduced, leaving a difference in how the two platforms handle listener preferences around AI content. [BBC News]
A study by the Money Advice Liaison Group (MALG) and AI firm Wyser found that generative AI, deployed with human oversight, could reshape the UK's regulated debt advice sector by improving the scale and consistency of advice delivery. [Credit-Connect]
Research by accountancy firm BDO found that mid-market businesses hold a broadly positive outlook on near-term AI investment, with the majority expecting returns from their spending on the technology. [Credit-Connect]
Housing & Rental
Government homelessness statistics show child homelessness in England has reached a record high for the 17th consecutive time, according to Shelter. [Shelter]
The Renters' Rights Act, described as the most substantial overhaul of renting rules in England in 30 years, has come into force, affecting the rights and obligations of millions of tenants and landlords. [BBC News]
Solicitors reported a late surge in requests to serve section 21 no-fault eviction notices ahead of the Renters' Rights Act coming into force, with advice charities also handling a rise in tenant enquiries in the same period. [The Guardian]
The Housing Ombudsman has published its Business Plan for 2026–27, incorporating several changes made in response to feedback received during the consultation period. [Housing Ombudsman]
Regulatory & Competition
The CMA has ordered AA Driving School and BSM Driving School — both owned by the AA — to refund more than 80,000 customers and pay a fine of £4.2 million following a finding that the companies engaged in drip pricing by presenting mandatory fees only late in the booking process. [CMA]
The government has announced new rules targeting subscription contracts it describes as unwanted or misleading, with an estimated saving to consumers of around £400 million per year, including measures to make cancellation easier. [Credit-Connect]
Citizens Advice reports that it is supporting more than 200 people a day with issues including housing disrepair, no-fault evictions, and rent increases, as legislation reforming the private rental sector comes into force. [Citizens Advice]
The CMA is consulting on recent developments relating to Apple's and Google's app store rules, inviting views as part of its ongoing oversight of the two platforms. [CMA]
The CMA has launched a market study into the retail supply of heating oil for domestic use in the UK, examining how competition functions in that market. [CMA]
Ofcom has launched an investigation into whether BT complied with formal information requests issued by the regulator. [Ofcom]
The CMA has published a register of measures it has put in place under the digital markets competition regime, providing a reference point for obligations on designated firms. [CMA]
The CMA has published orders and a tank transfer price calculator intended to make it easier for domestic LPG customers to switch supplier. [CMA]
Which? has examined the cost of life insurance for consumers seeking affordable cover, noting that premiums vary according to health status and the type of policy chosen. [Which?]
Which? has gathered accounts from members on their experiences of obtaining professional financial advice for pension planning, as part of broader coverage of retirement decision-making. [Which?]
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Welcome to the March 2026 issue of the policythinking.co.uk Consumer Policy Monitor. This month's edition examines developments across the energy and financial services sectors, where regulatory activity has been particularly concentrated in recent weeks. Readers will also find analysis of emerging debt and personal finance trends alongside updates from the Competition and Markets Authority and associated bodies.
Energy
The government has announced that plug-in solar panels will be available in shops within months, allowing households to generate their own electricity without installation by a professional. [DESNZ]
Citizens Advice reports that it is providing crisis support to a consumer every 30 seconds, ahead of forthcoming increases to household energy bills. [Citizens Advice]
Citizens Advice warns that 14 million households are served by energy suppliers rated below average for customer service, based on its annual supplier rating exercise. [Citizens Advice]
The Secretary of State and Ofgem have written jointly to Third Party Intermediaries (TPIs) setting out expectations on how they should support energy consumers. [DESNZ]
DESNZ is consulting on proposed changes to the inflation indexation methodology applied to payments under the Feed-in Tariffs (FiT) scheme. [DESNZ]
DESNZ publishes quarterly and annual estimates of the total number of energy supplier switches made by domestic electricity and gas customers. [DESNZ]
Financial Services & Banking
Millions of consumers may be entitled to compensation following the FCA's confirmation of a redress scheme covering commission arrangements between car finance lenders and dealers. [BBC News]
HM Treasury announced measures targeting food prices, energy bills, and profiteering, framing the package as action on cost-of-living pressures alongside longer-term energy security goals. [HM Treasury]
HM Treasury has announced a package of reforms to the Financial Ombudsman Service, aimed at delivering faster and more impartial complaint resolution. [HM Treasury]
Consumer advocates have warned of a rise in so-called friendship fraud, a scam in which fraudsters exploit the isolation of older people to build false relationships, often with serious financial consequences for victims. [The Guardian]
The government has allocated over £50 million to help households meet rising heating oil costs, targeting families facing pressure from elevated domestic fuel prices. [HM Treasury]
Regulators have launched a joint taskforce to address poor practice in motor finance claims handling, following the confirmation of the FCA's redress scheme on 30 March 2026. [FCA]
The government published plans during Debt Awareness Week to provide clearer and more tailored repayment support for people who owe money to government departments, with the aim of making repayment schedules more proportionate to individual circumstances. [HM Treasury]
The government announced reforms to extend the reach of credit unions, widening access to low-cost borrowing and savings products for households currently underserved by mainstream lenders. [HM Treasury]
Mortgage lenders signed the Mortgage Charter 2026, committing to a set of standards that provide borrowers with additional short-term flexibilities to manage their mortgage payments. [HM Treasury]
HM Treasury published information on the Financial Inclusion Committee, including its terms of reference and membership, setting out the body's role in addressing barriers to financial access. [HM Treasury]
Debt & Personal Finance
The DWP has closed two legacy benefits — Income Support and Jobseeker's Allowance (income-based) — following the completion of its Move to Universal Credit migration campaign. [DWP]
The Insolvency Service has released February 2026 monthly insolvency figures for England and Wales and Northern Ireland, covering bankruptcies, Debt Relief Orders, and Individual Voluntary Arrangements. [Insolvency Service]
The Insolvency Service has published updated guidance for debt advisers on Debt Relief Orders, covering eligibility and application processes. [Insolvency Service]
StepChange's 2025 data show that arrears in energy, housing, and household bills have continued to rise, with the charity warning of growing pressure on those already in financial difficulty. [StepChange]
The DWP has published guidance for new creditors, including utility suppliers and landlords, on how to apply for direct deductions from a claimant's ESA, JSA, or Pension Credit payments. [DWP]
The DWP has issued a toolkit for local authorities, housing providers, and support organisations covering the operation and implications of the spare room subsidy reduction in the social rented sector. [DWP]
StepChange reports that approximately 1,500 people were threatened with imprisonment for council tax arrears over the five years to 2025, highlighting the use of committal proceedings by local authorities. [StepChange]
StepChange data show that half of victim-survivors who experienced coerced debt — debt taken out under duress by an abusive partner — reported a negative impact on their credit record as a result. [StepChange]
The co-chairs of the Timms Review published a progress update in March 2026, setting out developments in the review of Personal Independence Payment assessment and eligibility. [DWP]
Regulatory & Competition
The CMA has opened investigations into five businesses over alleged use of fake reviews and misleading star ratings, as part of its broader effort to enforce consumer protection standards online. [CMA]
The CMA has published guidance on how agentic AI may affect consumers, how existing law applies to such systems, and what steps businesses should take to manage compliance risk. [CMA]
The CMA has designated Google as having strategic market status (SMS) in general search and search advertising, a finding that triggers obligations under the Digital Markets, Competition and Consumers Act. [CMA]
The CMA has launched a market study into the UK's private dentistry sector, which it values at £8 billion, to assess whether the market is functioning in consumers' interests. [CMA]
The CMA has opened an investigation into hotel chains to determine whether they used a shared data services provider to exchange commercially sensitive information in ways that may have reduced competition. [CMA]
Citizens Advice has published a response to the government's announcement of reforms to the WaterSure scheme, which provides bill support to eligible low-income and high-use water customers. [Citizens Advice]
The CMA has announced a package of measures on business software and cloud services, with the stated aim of expanding choice for UK businesses and the public sector as AI capabilities develop. [CMA]
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