Consumer Congress - Manchester 1998

For Richer For Poorer - empowering low income consumers

The Minister Speaks

At the Conference, held early in July, Competition and Consumer Affairs Minister Nigel Griffiths, said "we are determined to ensure that regulation serves customers first. I am particularly concerned about the plight of low income and elderly users.

"The privatised utilities were sold too cheaply, and the price controls set on privatisation were too lax. We need a regulatory system which delivers a fair deal to customers in the future. The Government places stress on delivering benefits to domestic consumers in the form of lower prices and improved service. But, in considering how to serve customers better, we are looking in particular at how to ensure that regulation protects the vulnerable consumer, to ensure that all consumers benefit".

The Minister went on to mention that 20% of all consumers have no bank accounts so cannot benefit from the reductions some companies make for payments by direct debit. He gave a run down on the legislation that he wishes to see to provide protection for those taking out prepaid funerals and those who in the past have been subject to dual rates of interest with a high penalty should they fall behind with their repayments.

Our right to continue the use of prescribed quantities for bread had been negotiated during the period of the UK chairmanship of the EU so stopping unscrupulous bakers from blowing up a 150g loaf with air to look like the standard 400g one [surely it would burst asunder -Ed]. There would also be legislation to prevent unfair doorstep selling practices and a curb on dubious 'get rich quick schemes'.

Poverty is getting worse

Of the 12 EU member states in 1993 the UK had the second worst poverty rate, exceeded only by Portugal. Nearly a quarter of the population was living in a household with an income below 50% of the average, compared with only one in ten in 1979. The increase in poverty affecting children has been even greater, having risen from one in ten in 1979 to just under a third by 1995. In contrast in Denmark only one in 20 children was living in poverty and in the EU as a whole the proportion was one in five. Today it is younger people of working age and their families who have been hardest hit.

These figures were presented by Ruth Lister, Professor of Social Policy at Loughborough University. They probably underestimate the full extent of women's poverty because they are based on households and on the assumption that resources are shared fairly

within households ignoring the fact that one or other partner may take an excessive amount of the family income for drinking, smoking or other pleasures. Children's 'pester power' can put an additional strain on family incomes due to the pressure to conform to the trainer shoe and clothing norms of their peers.

These trends have led some to argue that there is an 'underclass' at the base of our society structure. Professor Lister quoted Elaine Kempson who said "People who live on low incomes are not an underclass. They have just aspirations like others in society; they want a job, a decent home, and an income that is enough to pay the bills with a little to spare. But social and economic changes that have benefited the majority of the population, increasing their incomes and their standard of living, have made life more difficult for a growing minority, whose fairly modest aspirations are often beyond their reach."

Where are we all going?

Research has been carried out on behalf of Consumer Congress in an attempt to find out what member groups want. Many of the findings could apply equally to NfCG. Why do they join? They want to hear the views of others (77%), network (69%), learn (58%), discuss with others (54%) or contribute and influence the organisation (51%). The help they wanted to give was not encouraging. Only 3% wanted to be involved to a large extent, though 46% expected to contribute a little.

Twice as many preferred a one-day conference to two days; perhaps this is due to the increasing expense of an overnight stay. The Manchester University 'Conference Hotel' charged £36 bed and breakfast but this went up to £66 plus £8.50 for breakfast to the casual caller during the week. Research seminars and briefings were much liked. Are the days of the large consumer conference over? Congress this year seemed to be made up much more by professionals sent by their organisations (the era of consumer consultation) and non-members, rather than the traditional consumer representatives.

Congress publications came in for general approval with half welcoming the supply of electronic information. Respondents said they would like to work in groups with similar interests and to be able to commission suitable research.

The supply of training was less popular (43%) with one in five 'not knowing'. The idea of regional meetings seemed popular. The question of commercial sponsorship was discussed and a suggestion from NfCG was that sponsorship of meeting rooms in London would aid these aspirations.

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