'Better Deal' Aimed At Saving Families £470

A series of reforms in areas of essential spending for families could save households up to £470 a year, according to the Government.

It said its Better Deal project is aimed at eradicating red tape and restrictions which add to consumer bills and building productivity.

Measures include making switching supplier easier in the communications, energy and banking sectors and opening competition in the water sector from 2017 to allow businesses to choose a supplier. It is hoped that could soon be extended to households.

The launch of Better Deal follows research by the Treasury which examined how unavoidable spending for families - on things such as heating and school uniforms - could be trimmed.

It identified an average household spend of £9,685 across nine essential markets, which equated to 40% of disposable income for the average family.

In terms of direct action to help cut down those costs, the Government has said it plans to launch a consultation next year on forcing mobile phone firms to unlock handsets automatically at the end of a contract, rather than forcing people to spend up to £20 to have it done.

It also intends to ban minor whiplash claims arising from motor accidents, potentially saving motorists £50 in insurance premiums.

Other areas which would face action on costs would be dentistry, banking and broadband, the Government said.

It also plans to trim £30 of green levies from annual energy bills from 2017 - adding that it supports the consumer group Which? in its campaign to make terms and conditions information, particularly online, more succinct.

The Chancellor, George Osborne, said: "This broad package of reforms will make markets work better for families.

"Driving competition will improve choice for people and ensure they get a better deal.

"And cutting red tape will help businesses grow and thrive.

"It's the Government's responsibility to help foster the right conditions for competition and investment across the UK - that's why the concrete steps we're announcing make sure government, regulators and local authorities all play their part in promoting competition and removing market distortions."

Richard Lloyd, executive director at Which?, said: "We warmly welcome the Government's plan to help consumers get a better deal through more competitive markets.

Hidden charges, confusing contracts running to dozens of pages and complicated switching are still too common in markets we all rely on.

"By making it easier for consumers to save time and money, these reforms are good for people, businesses and growth in the economy."​