Consumers: Paper Billing

Debate between Viscount Younger of Leckie and Lord Lipsey

Monday 25th November 2013 Lords Chamber

[Viscount Younger of Leckie]

I can reassure the noble Baroness that that is not the case. We are encouraging businesses to bring in processes that will help more the vulnerable—I have already spelt out what we are doing. The Government, of course, provide the framework, but we believe that it is very much for companies to decide to put themselves in a position to help people in this respect.

[Lord Lipsey]

I am sorry to interrupt the noble Viscount again but, to press the point, why is it in the interests of companies to help the vulnerable?

[Viscount Younger of Leckie]

It is in the interest of companies to look after all their customers, otherwise they will go away. That includes all those people who are vulnerable and, as I mentioned earlier, all those across the spectrum who require the service. As I mentioned earlier, looking at the generational issues the picture is complex in terms of the current needs of customers.

My noble friend Lady Oppenheim-Barnes raised the issue of some companies not being up front about the charges, which is a very fair point. In the communications sector regulations are in place that prescribe that such charges must be set out in a clear, comprehensive and easily accessible form so that consumers can make informed decisions. The consumer rights directive will mean that suppliers should obtain consumers’ express consent to any extra charges and that they should not use a tick-box approach that requires consumers to un-tick boxes in order to avoid charges. The directive must come into force by June 2014.

The noble Baroness also raised the issue of charging premium-call rates. In April, Ofcom announced plans to simplify the pricing of telephone numbers such as 0800 numbers. Under its proposals, calls to 0800 numbers from mobile phones will be free. Ofcom will publish the final proposals shortly. The noble Baroness also raised the issue of payment by cheques. There may be a legitimate charge for paying by cheques rather than paying electronically, but this charge is not levied as a norm. Any such charge would need to have been justified by relation to the additional cost. That is underpinned by the Consumer Rights (Payment Surcharges) Regulations 2012, to which I alluded earlier.

The noble Lord, Lord Lipsey, raised the issue of the response that he received from Ofcom about his question regarding a charge from a bill from his service provider. I repeat that what companies charge for their services is a commercial decision. In a competitive market consumers have choice and can move to a different provider. On the role of regulators, more widely, the Government have announced a number of reviews that look at competition and consumer issues. That may help to address the comments raised earlier by the noble Baroness, Lady Hayter. For example, the PM has asked the regulators to instigate an annual review of the state of competition in the energy market. Ofcom published telecoms proposals in the summer and the Government have called on the industry to provide greater price transparency, particularly in communications with customers at the point of contract renewal.

The noble Lord, Lord Lipsey, raised the generational issue of those aged over 65 who are offline. The Government are committed to helping people access the benefits of digital services. The Government Digital Service Digital Inclusion Team is working closely with the noble Baroness, Lady Lane-Fox, to ensure that we protect the vulnerable.

My noble friend Lady Maddock made a good point about security online. Trust and security are major concerns and the Government are working with the online security industry to make it simpler and easier to protect individuals online. My noble friend also asked about charges for telecoms paper bills. Recipients of paper bills are not generally charged extra, even though they are being charged more than the discounted price. Should companies wish to charge for a paper bill or make a reduction for a digital bill or digital payment, they must ensure that the charge reflects only the different processing costs incurred.

This House may recognise that, with advancing technology, the number of people feeling disfranchised by online billing is likely to diminish over time. I fully accept that there remain those who continue to wish for, and, indeed, need, paper through the post in the form of receipts, bills and statements, but we do not believe that legislating further on charging for paper bills is necessary when options are available and protections are already in place for the most vulnerable.