Consumer Rights Bill

Debate between Stephen Lloyd and Stella Creasy

Tuesday 28th January 2014 Commons Chamber

[Stella Creasy]

The hon. Gentleman makes some strong points about exactly the kind of contracts that consumers get into and the kind of service standards they should expect. That the Bill will simply consolidate existing rights, rather than address some of the challenges, shows that it could go much further on such issues.

It would not take much to make a real difference to households across this country. The Money Advice Service research shows that if consumers saved just £3 a day, it would be enough to cover their average unexpected bills in a year. That may not sound like much, but for millions of British consumers who have already used up their savings or are getting into debt in dealing with the cost of living crisis created by this Government, it is a stretch. For millions of people, reducing their outgoings would also make a real difference to their financial precariousness. The Centre for Social Justice has estimated that about 4 million British families do not have enough savings to cover their rent or mortgage for more than a month, and that more than 5,000 households became homeless in the past year alone because of arrears.

I hope that the Secretary of State will at least do better than his Cabinet colleague, the Prime Minister, who denies that living standards are falling as the public pay for the cost of this Government’s policies. The Prime Minister claims that it is a matter for statisticians to argue, but I hope that the Secretary of State agrees that it is a matter on which politicians should help out. It is not our role to make decisions for consumers, but it is our role to help to make decision making easier.

We could also help with the cost of living crisis, because it is about not just job creation, but every extortionate charge to which the Government turn a blind eye or every broken market they ignore, and that all adds to the struggles that people face. Every unfair service contract term and every bad decision that consumers are duped into making is more money down the drain.

[Stephen Lloyd]

I hate to interrupt the hon. Lady in full powerful flow, but I want to ask her whether there is anything about the Bill that she likes, or does the whole direction of travel and everything that we are doing on the cost of living crisis, which she has mentioned about five times, mean that it is just a poor Bill?

--- Later in debate ---

[Stella Creasy]

I can safely say that I will please the hon. Gentleman by talking about the cost of living crisis an awful lot more. I said at the very start that we welcome the Bill. Our concern is that this is a once-in-a-Parliament opportunity to get consumer rights legislation right. There are so many challenges that the Bill does not face that it will become a missed opportunity, to the detriment of all consumers and all our constituents, who are paying the price for our failure to tackle these issues. It will have minimal impact on the problems that we are seeing every day in our constituencies. The fact that nothing in the Bill is of particular concern tells us everything we need to know about its narrow ambitions in addressing the problems that our constituents face.

[Stephen Lloyd]

Will the hon. Lady give way again?

[Stella Creasy]

I think it will help the hon. Gentleman if I go on to explain my case, but I will give way to him once more.

[Stephen Lloyd]

Does the hon. Lady agree that it is at least something that the coalition has brought the Bill forward? Many consumer groups and people who are involved in this area are very supportive of the Bill. That has to be a good thing. Perhaps it is a shame that the Labour party did not bring forward such legislation six, seven, eight, nine, 10 or even 15 years ago.

[Stella Creasy]

The hon. Gentleman is again being a little uncharitable. I pointed out that consumer rights legislation in this country has had an elephantine gestation. If his argument is that something is better than nothing, when we could be aiming for the best for this country, I think that people will see the difference between the choices of the Government and the Opposition.

I want to set out our ambition today. If the hon. Gentleman is on the Committee, I encourage him to support it. We want to get the best possible consumer rights framework in this country and truly tackle the detriment that people in our communities are facing. We want to prevent problems from occuring in the first place, rather than waiting for people to be ripped off. That is the ethos that we want to see in the Bill. We know that when we do not get consumer rights right in this country, it is the poorest and the most vulnerable who pay the biggest price.

Consumer Futures and the Joseph Rowntree Foundation have found that lower-income families can end up paying £19 more a week on average because they face higher charges for the same products. Their research shows that such poverty premiums can add up to 10p for every £1 that is spent by households. Poorer households in this country are subsidising richer households as a result of the levels of detriment that they face.

I will set out for the Secretary of State four questions that we believe could make the Bill better and that will be the focus of our efforts in Committee.