The ‘fair markets’ agenda forms a major truss of the Government’s domestic policy programme.
And, rightly so: too many people feel they are being ripped off and poorer households in particular are vulnerable to unfairly high prices and unfavourable contracts. In a period of falling real wages, how households spend their disposable incomes becomes ever more important.
At the heart of the debate is concern about the outcomes for consumers who don’t switch but stick with their suppliers and subsequently pay a so-called ‘loyalty penalty’. This report focuses on such ‘loyal’ consumers and asks the questions: what do we mean by ‘loyalty’ in a market setting? And is it possible to help such consumers get a better deal without undermining competition in the market more generally?
This report is sponsored by ScottishPower. The SMF retains full editorial control of our reports.