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The Competition and Markets Authority (CMA) will now investigate concerns raised that people who stay with their provider – often on default or roll over contracts – can end up paying significantly more than new customers. Citizens Advice refers to this as a ‘loyalty penalty’.

The super-complaint identifies five ‘essential’ markets where Citizens Advice has concerns about such penalties:

• savings accounts
• mortgages
• household insurance
• mobile
• broadband

Citizens Advice has also asked the CMA to focus on vulnerable customers, who it fears can be hardest hit.

The CMA will now consider the concerns raised, and what should be done about them. This will include engagement with relevant regulators such as the FCA and Ofcom.

It will publish a response within 90 days and possible outcomes include:

• making recommendations to government to change legislation
• action by sectoral regulators
• taking competition or consumer enforcement action
• launching a market investigation or market study
• deciding there is no action required

This list is not exhaustive and there could be more than one outcome depending on the results of the investigation.

Daniel Gordon, Senior Director at the CMA said:

We will now carefully consider the concerns raised by Citizens Advice, and any further evidence on this issue. Our response will set out the CMA’s views on this important issue and any next steps we think are needed to make sure businesses don’t take unfair advantage of their long-standing customers.

The CMA is inviting interested parties to provide any evidence which may be useful to its assessment.

Find out more on the loyalty penalty super-complaint page.

Notes for editors

1. The Enterprise Act 2002 (the Act) makes provision for designated consumer bodies to make super-complaints. A super-complaint, as defined by section 11(1) of the Act, is a complaint submitted by a designated consumer body that ‘any feature, or combination of features, of a market in the United Kingdom for goods or services is or appears to be significantly harming the interests of consumers’. Citizens Advice is a designated consumer body. Within 90 days after the day on which a super-complaint is received, the CMA must say publicly how it proposes to deal with it.
2. In its super-complaint Citizens Advice defines vulnerable consumers as those on low incomes, older people, people with health problems and those with lower levels of formal education.
3. Enquiries should be directed to the CMA’s press team: press@cma.gov.uk, or 020 3738 6460.

• Smart Data Review launched as research published today suggests customers who stay loyal to essential service providers are losing out on £4 billion a year
• the review will look at how we can use technology such as comparison tools and open banking to ensure markets work for consumers, as part of our modern Industrial Strategy

Consumer Minister Kelly Tolhurst has today (Friday 28 September) published details of a new review which will make it easier for consumers to get good deals on essential services like broadband and banking, and put an end to consumers paying unjustifiable ‘loyalty penalties’.

The Smart Data Review will look at speeding up the development of innovative new services such as automatic switching apps to make bills cheaper.

Government wants to ensure that all consumers can benefit from these types of innovative new services, not just those who are digitally savvy and regularly look to switch providers.

The Review will report to the newly established Consumer Forum, chaired by Consumer Minister Kelly Tolhurst, which brings together ministers and CEOs of sector regulators. The government will consult with stakeholders including developers, regulated companies, consumer organisations and charities throughout the review.

Consumer Minister Kelly Tolhurst said:

Britain has long been a world leader in ensuring that markets work in the interests of consumers, but many loyal customers are still paying more than they need to.

The Smart Data Review will enable the development of new technologies to make it easier to access the best deals, and follows tough action we have taken in the energy market through our price cap which will protect over 11 million households from poor value default tariffs this winter.

It is our modern Industrial Strategy in action, ensuring markets provide consumers with keen prices and quality products and services through cutting-edge innovation.

The government’s Modernising Consumer Markets Green Paper highlighted the challenges that consumers face in regulated markets such as financial services, energy and telecoms. For example, consumers can struggle to stay on top of their essential service contracts and find it difficult to identify the best deal, and those that do not switch sometimes pay considerably more.

Today Citizens Advice revealed that customers who stay loyal to their providers are losing out on over £4 billion a year. The Competition and Markets Authority, the UK’s primary competition and consumer authority, is investigating the concerns raised by Citizens Advice.

Citizens Advice research shows the loyalty penalty is disproportionately paid by vulnerable consumers, such as older people and people with mental health issues. These groups are particularly likely to struggle with switching.

In addition to the Smart Data Review, the government is working with regulators to ensure vulnerable consumers are protected by identifying and sharing best practice policies and approaches to vulnerable consumers from across all sectors of the economy.

Foreign Ministers’ joint statement on Syria, made on 27 September 2018 at the UN General Assembly in New York:

We, the Foreign Ministers of Egypt, France, Germany, Jordan, the Kingdom of Saudi Arabia, the United Kingdom, and the United States of America made the following statement of support for the urgent convening of a constitutional committee to advance the UN’s efforts to achieve a political solution to the conflict in Syria on the basis of UN Security Council Resolution 2254.

The Syrian conflict has dragged on for more than seven years at the expense of hundreds of thousands of lives lost, and millions forcibly displaced by violence both within Syria and beyond its borders. There is an urgent need for concerted diplomacy and international political will to end the conflict. There is no military solution to the war and no alternative to a political solution. We affirm in the strongest terms that those who seek a military solution will only succeed in increasing the risk of a dangerous escalation and wider conflagration of the crisis to the region and beyond. It is, therefore, imperative to move forward with a political solution consistent with UN Security Council Resolution 2254.

To that end, we call on the UN and the Office of the Special Envoy for Syria to convene, as quickly as possible, a credible, inclusive constitutional committee that will begin the work of drafting a new Syrian constitution and laying the groundwork for free and fair UN-supervised elections in a safe and neutral environment in which all eligible Syrians – including those in the diaspora – have a right to participate. We urge the UN Special Envoy for Syria to report back to the Security Council on his progress no later than October 31.

We underscore the Office of the UN Special Envoy’s clear mandate from the Secretary-General and the UN Security Council, to move forward with convening a constitutional committee, and encourage all sides to ensure the Syrian parties are prepared to engage substantively in the committee’s proceedings once convened.

Further information

• Follow the Foreign Secretary on Twitter @Jeremy_Hunt
• Follow the Foreign Office on Twitter @foreignoffice and Facebook

During a meeting in New York with his US, Saudi and Emirati counterparts, the Foreign Secretary urged those present to seize the opportunity for political progress. The group underlined their complete support for the UN process led by Special Envoy Martin Griffiths.

The group also discussed the destabilising effect of Iran on Yemen and the wider region, and how to put in place confidence-building measures following the breakdown of the Geneva peace talks.

In the context of a rapidly deteriorating humanitarian situation, the Quad members discussed how they could provide greater assistance to the Yemeni people by facilitating the entry of humanitarian and commercial goods into Yemen.

Further information

• Follow the Foreign Office on Twitter @foreignoffice and Facebook
• Follow the Foreign Office on Instagram, YouTube and LinkedIn

Today the UK, Somalia, Italy and Ethiopia brought together international partners in support of Somalia’s security, political and economic reforms.

Minister for Africa Harriett Baldwin co-hosted the meeting at the UN General Assembly in New York, with Foreign Minister Ahmed Isse Awad of Somalia, State Minister Hirut Zemene of Ethiopia and Enzo Moavero Milanesi, Minister of Foreign Affairs and International Cooperation of Italy. Alongside senior government representatives, UN Secretary General Antonio Guterres, AU Peace and Security Commissioner Chergui and Neven Mimica, EU Commissioner for International Cooperation and Development attended.

Minister Baldwin praised the bravery and positive impact of African Union Mission in Somalia (AMISOM) troops and the Somali forces who are fighting against Al Shabaab and restoring stability to the country. She emphasised the importance of a successful transition of responsibility for Somalia’s security to its own forces. A rushed withdrawal, without sustainable and predictable funding in place, would jeopardise the fragile progress made over recent years.

During her visit to Kenya (30 August 2018), the Prime Minister announced over £7m of additional funding to support AMISOM’s work. She called on the international community to join the UK in providing additional funding to AMISOM to ensure it was sufficiently funded to deliver a successful security transition.

Minister Harriett Baldwin said:

Somalia has a real chance for a better future. One that allows its people to flourish, provides no space for terrorist groups, and contributes to regional stability.

Helping to build that future must be a truly international effort. Today I am calling on Somalia’s friends to contribute to ensure sustainable funding for AMISOM.

Somalia’s Minister for Foreign Affairs and International Cooperation, His Excellency Ahmed Isse Awad said:

The Federal Government of Somalia remains committed to implementing the key political, economic and security reforms that will help Somalia emerge from the many difficult years it has experienced. The support of the international community has been vital to Somalia thus far. We look forward to continued engagement and support with our international partners as we advance our reform agenda and the transfer of responsibility for Somalia’s security from AMISOM to Somali security forces.

Today’s meeting also discussed Somalia’s wider state-building efforts, including recent progress on political and economic reforms.

The UK is a leading partner for Somalia, and the second largest bilateral donor. This financial year, the UK will provide approximately £313m of support to Somalia, contributing to the country’s stability and helping to make a tangible difference to the lives of its poorest and most vulnerable people.

During her recent visit to Kenya, Prime Minister May announced additional funding for Somalia. Over £25m will support Somalia’s efforts to build a stable and democratic political system, including future one-person-one-vote elections. Further funding of over £60m will provide lifesaving food, clean water and medicine, along with support to find stable jobs, to help over a million people cope with and recover from the impact of conflict and drought.

Further information

• Follow Foreign Office Minister Harriett Baldwin on Twitter @hbaldwin
• Follow the Foreign Office on Twitter @foreignoffice and Facebook
• Follow the Foreign Office on Instagram, YouTube and LinkedIn

Minister Burt said:

Today I hosted a roundtable on the future of Iraq with His Excellency Iraqi Foreign Minister Dr Ibrahim al-Jaafari and representatives from Canada, France, Germany, Italy, Japan, Kuwait, USA, the EU External Action Service and the UN Department for Political Affairs to discuss stabilisation and governance priorities.

As the next Government of Iraq begins to lay the foundations for a country that meets the aspirations of all Iraqis, stabilisation efforts and good governance will be vitally important. The UK and the international community reaffirmed their political support for a strong stabilisation partnership with the Government of Iraq.

Ultimately we recognise that progress must be Iraqi-owned and Iraqi-led. I welcome the Government of Iraq’s commitment to stabilisation and governance, so that support from international partners can continue to be sustained and effective. We want to see a strong Government of Iraq that delivers for all its people.

Further information

• Follow the Foreign Office Minister Alistair Burt on Twitter @AlistairBurtUK
• Follow the Foreign Office on Twitter @foreignoffice and Facebook
• Follow the Foreign Office on Instagram, YouTube and LinkedIn

Communities across the UK will benefit from £840 million to upgrade public transport links, the Prime Minister has announced today (27 September 2018).

The shortlist of ten city regions marks the next stage of the £1.7 billion Transforming Cities Fund which under the government’s modern Industrial Strategy is supporting cities to make it easier, safer and quicker for people to travel and get to work by funding improved transport connections.

Local authorities in Derby & Nottingham, Leicester City, the North East, Norwich, Plymouth, Portsmouth, Southampton, Sheffield, Stoke-on-Trent and West Yorkshire will bid for a share of the funding.

The Transforming Cities Fund is already delivering major improvements for people across England. Six Mayoral Combined Authorities have already received a share of £840 million to deliver schemes such as the Brierley Hill tram lines extension in the West Midlands and £160 million towards the Beeline Cycle Network in Greater Manchester. Set to be the largest network of its kind in the UK, the proposal for 1,000 miles of interlinked bike and pedestrian lanes will connect communities across its 10 boroughs and help make cycling and walking a safer option for people living in the region.

Over the next four years, the new allocation of funding will be used to improve transport links in city regions, linking travel to work areas, increasing access to jobs and helping ensure that businesses have the infrastructure they need to thrive.

This funding could go towards upgrades such as new bus routes between residential areas and major employment hubs, smart technology aimed at reducing congestion, or rolling out docking stations for e-bikes.

Prime Minister Theresa May said:

Our great cities and their suburbs are home to millions of people and world-beating businesses.

We want to help them succeed, so as part of our modern Industrial Strategy we will fund £840 million of upgrades for better, safer, faster transport links.

These improvements to vital infrastructure will help spread growth beyond London and empower local businesses to create more, better-paying jobs – opening up more opportunities to help people get on in life and be rewarded for their hard work.

Transport Secretary Chris Grayling said:

Good bus, cycle and tram routes play a huge role in increasing the vitality and vibrancy of cities.

These 10 areas now have the chance to transform their transport systems – making it easier for people to get around and enhance links to work, school or shops.

The ten shortlisted city regions will each receive an initial £50,000 as well as bespoke support from government to co-develop the strongest cases for investment. Once finalised, funding decisions will consider the relative strength of each bid and their impact on improving connectivity, supporting employment and driving up productivity.

While the city regions finalise proposals, £60 million from the Fund will be made available over the next year to share across transport schemes aimed at tackling head on some of the most pressing challenges faced by communities.

The projects supported by the Transforming Cities Fund will also help progress the government’s mission to radically improve the ways in which people, goods and services move around the country through its Future of Mobility Grand Challenge.

Under this commitment, the UK will become a world leader in cutting-edge clean technology and reduce greenhouse gas emissions, whilst also making travel safer, improving passenger journeys and presenting enormous economic opportunities for the UK.