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Citizens Advice response to CMA announcement of 6 month extension

21 January 2020

Today the Competition and Markets Authority (CMA) has announced an extended deadline of six months to ensure regulators take effective action tackling the loyalty penalty.

The CMA has previously been clear that it wanted to see urgent action, and Ofcom and the Financial Conduct Authority (FCA) agreed to update on their progress within 12 months. While some progress has been made, Citizens Advice supports the CMA’s decision to extend the deadline. Regulators must use this time to tackle the loyalty penalty once and for all.

Dame Gillian Guy, Chief Executive of Citizens Advice, said:

“The loyalty penalty is a huge problem, and too often affects those who can least afford it. The government and regulators have promised action, but today's update shows that progress has been slow and inconsistent.

“Ofcom and the FCA have begun to make some progress, but both must make sure all providers stamp out the loyalty penalty. 

“The six-month extension granted by the CMA gives regulators extra time to tackle this practice. But, if real change isn’t achieved in the coming months, we’ll be looking to government to take strong action where regulators have not or cannot.”



Citizens Advice submitted a super complaint on the loyalty penalty - in the mobile, broadband, home insurance, mortgages and savings markets - to the CMA in September 2018 calling for it to consider how the problem can be fixed. The CMA’s response to the super complaint, the following December, said it agreed and had found damaging practices by firms which exploit unsuspecting customers. The CMA said it wanted to see urgent action.

Research in 2018 by Citizens Advice found that across five essential markets (mobile, broadband, home insurance, mortgages and savings): 

  • British consumers lose around £4 billion a year to the loyalty penalty (or £11 million a day).

  • Eight in 10 people are paying a significantly higher price, in at least one of the markets, for remaining with their existing supplier.

This is the fourth super complaint Citizens Advice has made since being given the power in 2002. Its super-complaint on payment protection insurance (PPI) in 2005 helped to generate a huge win for consumers, with at least £36 billion returned to customers in refunds and compensation so far.

Notes to editors

  1. Citizens Advice includes the national charity; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.
  2. Citizens Advice is the statutory consumer advocate for energy and post. We provide supplier performance information to consumers and policy analysis to decision makers.
  3. The Citizens Advice Witness Service provides free, independent support for prosecution and defence witnesses in every criminal court in England and Wales.
  4. Citizens Advice offers Pension Wise services at 500 locations in England and Wales.
  5. Citizens Advice’s services are free, independent, confidential and impartial, and available to all regardless of race, gender, disability, sexual orientation, religion, age or nationality.
  6. To get advice online or find your local Citizens Advice, visit
  7. For consumer advice, call the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 to talk in Welsh.
  8. We helped 2.6 million people face to face, by phone, email and webchat in 2017-18. For service statistics see our monthly publication Advice trends.
  9. Citizens Advice staff are supported by over 23,000 trained volunteers, working at over 2,500 locations in England and Wales.