Purchasing power: Making consumer markets work for everyone
Article
Living standards of households in the UK have fallen over the last six years due to a combination of exceptionally low increases in wages and larger increases in prices. Substantial rises in the price of essentials, including energy, public transport and childcare, have been a particular problem for some families, with those on the lowest incomes feeling the biggest squeeze because they spend more, proportionately, on these items.
In some markets, consumers are fighting back, for example by using networks to expand their knowledge of markets. The internet has facilitated the development of websites that compare prices and the quality of goods and services, making it easier for consumers to make the right decisions.
But some markets are so complex that they require special analysis and regulation. In this paper, we consider four such markets:
- energy
- public transport
- childcare
- housing.
The common theme in these four markets is that attempts to deliver goods and services through competition have been tried and failed.
Making markets more competitive – reducing the power of oligopolies, increasing consumer information and banning practices designed to exploit consumers – is the best approach for many consumer markets. But complex markets require more complex and innovative solutions. In these cases, the choice is not between trying to make markets freer or reintroducing regulation (or even nationalisation). Instead, it should be about finding alternative ways of achieving the best deal for consumers.
Related items
A system that empowers: The future of professional development
Our education system faces a significant and urgent challenge: ensuring equitable access to an excellent education in the context of acute budget pressures.Programme for Government 2025/26: An IPPR Scotland briefing
On 6 March, first minister John Swinney will announce his Programme for Government for 2025/26. He will highlight his four ‘core priorities’ of eradicating child poverty, growing the economy, tackling climate change, and ensuring high…The health mandate: The voters' verdict on government intervention
The nation’s health is now a top-tier political issue.