Draft Work Programme 2024-2025

Understanding the consumer experience

Overview

Robust evidence and insight into consumer harm and the potential policy responses to that harm is a foundational part of Consumer Scotland’s activity. As such, our research, analysis and investigations directorate is critical to the delivery of our work programme.

Our research, analysis and investigations functions provide evidence and insight into issues such as:

• how consumers are affected by policy, the operation of markets, and wider economic circumstances
• consumers’ perceptions of and attitudes to a wide range of issues and trends, and how these affect the outcome of policy
• how consumers change their behaviours in response to new information or circumstances – and the impact of this on consumer welfare and wider societal goals

Our research, analysis and investigations involve a wide variety of methods and approaches. We work extensively with existing statistical, economic, administrative, and research data to understand the experience of consumers in Scotland, examine issues in markets or practices which may cause harm to consumers and analyse policy options. We conduct and commission primary research with consumers, businesses and other stakeholders, ranging from large-scale surveys to focus groups, qualitative interviews and deliberative research. We also have statutory information gathering powers, which we can use to gather evidence on the issues affecting consumers in different markets or services.

Ultimately, the evidence from our research, analysis and investigations is what enables Consumer Scotland to deliver, alongside our partners, better outcomes for consumers.

Much of our research and analysis activity is undertaken as part of workstreams detailed in other parts of this work programme. We also take forward some of our core research and analysis activity as part of three specific workstreams – an ongoing programme of consumer welfare analysis, broader activity to build the evidence base, and specific investigations into potential consumer harm.

Consumer issues - insight and analysis

We will provide a programme of analysis, commentary and insight on a broad range of issues affecting consumers. This programme of work will continue throughout the year, with regular publication and dissemination of commentary and briefings. The topics covered will include a range of contemporary and emerging consumer issues across a wide range of markets, including but not limited to our levy-funded markets of energy, post and water. Our aim throughout this work is to raise awareness of issues that are affecting consumers, and to stimulate and inform public debate about potential policy and regulatory responses to those issues.

Using our investigative powers

Where we discover credible intelligence of harm to consumers in particular sectors or as a result of particular practices we may choose to investigate using our formal powers. We may also use our investigative powers to examine opportunities for consumers in particular markets. Depending on the results, we will advocate for the best solutions to minimise the detriment and leverage better outcomes for consumers and fair dealing businesses.

In the year ahead we will begin our first investigation, following preliminary work in 2023-2024. The choice of investigation will be measured against agreed prioritisation principles and criteria. We will be as transparent as possible in our investigations process and aim to deliver outcomes and advice that are based on the best evidence achievable. In doing so, we will also liaise and work closely with our landscape enforcement and stakeholder partners to maximise fair outcomes for consumers.  In that respect, alongside this Work Programme we are seeking stakeholder views in a separate consultation on our Investigations Prioritisation Criteria. Consumer Scotland Investigations Prioritisation Criteria - Consultation

Strengthening the evidence base

High-quality research and analysis require robust evidence. This workstream aims to improve the quality and quantity of evidence readily and regularly available to Consumer Scotland to inform all of our work. It is distinct from other workstreams in that it seeks to enable regular access to evidence that could benefit multiple workstreams, both now and in the future, rather than being specific to a particular topic or project. It will improve the "how" we do our work, rather than focusing on the "what".

Putting consumers at the centre of our systems

Overview

People don’t experience markets or services in isolation. In a single day, an individual is likely to come into contact with multiple businesses or service providers across the public, private or third sector. When they put on their heating, go to the shops, use the internet, visit the doctor, send their children to school, pay a bill, or take a bus or a train, people are acting as consumers. Yet each of the markets or services that they might use to undertake these activities are structured differently – often radically so – requiring consumers to act in many different ways, in order to achieve the outcomes they are seeking.

As the cross-market consumer body in Scotland, with a role to represent those buying or using or receiving goods and services from businesses and the public sector, Consumer Scotland wants to put consumers at the centre of the system. We know there are significant issues that affect consumers across multiple settings. However, the way in which these different markets and services are organised does not always translate into  a coherent, positive overall experience for consumers.

In 2024-2025 we will undertake a number of streams of work, which look strategically across markets to assess how well the current arrangements are working for consumers in Scotland. In doing so we will identify best practice and opportunities for sharing, learning and better coordination. Our cross-market work in 2024-2025 will focus on the following strategic consumer issues:

• The transition to net zero, and the different ways in which consumers are being engaged in this process
• The disadvantages being experienced by specific groups of consumers, across multiple markets or services, and the compound effect of this disadvantage
• The particular experiences of small businesses when they are buying or using goods and services
• The strategic decision-making process within public bodies and how the consumer interest can be more fully considered as part of that process
• The arrangements for recalling faulty goods and products in Scotland

A net zero transition that delivers for consumers 

The Scottish Parliament has set ambitious, binding climate change targets which can only be met by sustained effort by government, industry, businesses and consumers.

Households, businesses and communities will need to make considerable changes to lifestyles, business practices, and consumption habits. The transition will need to be informed by the needs and priorities of consumers, including those in vulnerable circumstances, or on low incomes.

In 2024-2025 Consumer Scotland will analyse our developing evidence base around the consumer transition to net zero, identifying where consumer engagement or impacts differ amongst groups. We will advocate for effective, consumer-centred policy interventions that maximise participation, taking account of consumer needs today and in the future, so no one is left behind.

Fairer markets for all consumers 

Consumer Scotland has particular regard to the interests of  consumers who are at greater risk of harm or who have fewer or less favourable options than other consumers. In 2024-2025 we will build on the literature review on Consumers in Vulnerable Circumstances that we published last year.

We will particularly focus on whether some consumers in Scotland may experience compound disadvantage across multiple markets, due to their characteristics, or geographic location. We will consider whether markets for certain key essential services operate in different ways across the UK and whether this produces a cumulative effect which impacts on the experience of specific groups of consumers in Scotland.

Markets that deliver for small businesses

The definition of ‘consumer’ in the Consumer Scotland Act 2020 includes small businesses who purchase, use or receive goods or services. Small businesses often face similar challenges to individual consumers including accessibility, inequality of bargaining power and difficulty in securing effective redress. While the risks are similar, the way these issues can be experienced by small businesses can be different.  The nature of the goods and services a small business consumer purchases or uses may also be different to those supplied to domestic consumers. There is a risk that the specific harms relating to small business could therefore be overlooked.

In 2024-2025 Consumer Scotland will seek to build understanding of the key consumer issues relating to small businesses in Scotland. Through this work we will identify priority areas to for policymakers to consider when assessing interventions that will deliver positive outcomes for small business consumers in Scotland.

Consumers at the heart of public services

Most public bodies in Scotland will be required to meet the consumer duty under the Consumer Scotland Act 2020 from 1 April 2024. This will require them to have regard to:

• the impact of their strategic decisions on consumers in Scotland
• the desirability of reducing harm to consumers in Scotland

In line with its statutory role under the Act, Consumer Scotland is currently developing  draft guidance on how public bodies can meet the duty, with expert advice and input from an advisory group.

There will be a one year implementation period for the duty from 1 April 2024. This period is intended to allow time for public bodies to:

• work with Consumer Scotland in informing the final draft of the guidance by sharing their experience of using it when applying the duty
• experience implementing the duty, as not all public bodies will make strategic decisions on a regular basis

We will undertake further stakeholder engagement throughout 2024-2025 to finalise the guidance, including running a public consultation on the draft guidance. The final guidance will be published by 1 April 2025.

Better protection for consumers from product harm

The Consumer Scotland Act 2020 placed a duty on Consumer Scotland to operate, or secure the operation of, a publicly available database of recalls of goods in Scotland. Since the Consumer Scotland 2020 Act was passed, the Office of Product Safety and Standards (OPSS) launched a UK-wide product safety database in April 2022, the same month that Consumer Scotland came into existence.

Consumer Scotland and OPSS are working together to develop an action plan that will help ensure the OPSS operated database meets the duty placed on Consumer Scotland and to identify opportunities to further enhance impact for consumers in Scotland.

Improving the way markets work for consumers 

Overview

There are pressing concerns around consumer access to vital goods and services. The cost of living crisis has impacted on consumers in different ways, and some are struggling with affordability issues. Consumers have seen sharp rises in prices of household costs across a number of markets in the past two years, including food, housing and mobile and broadband services.

Our markets must work to ensure that consumers can access goods and services that meet their needs, both now and in the future. This future aspect is especially relevant as we continue to adapt our ways of living and working as we make the transition to net zero.

In 2024-2025 Consumer Scotland will take a strategic approach across a number of important consumer markets, seeking to identify what consumers need and advocating for changes that deliver improved consumer outcomes. We will input into the parliamentary process and the implementation of framework legislation on legal services, housing and digital markets. We will identify how consumers can play a role in reducing consumption and getting the maximum use from our natural resources, contributing to the development of a circular economy. And we will look at what factors promote or inhibit the use of public transport, which must be accessible and affordable for all, especially if it is to help us achieve our net zero targets. We will continue to monitor developments across other markets responding where there are opportunities to bring about positive change for consumers in Scotland.

A consumer-centred system for legal services

A Bill reforming legal regulation is currently being considered by the Scottish Parliament and this addresses important public interest issues around transparency, accountability and redress for consumers.

Access to legal services can help consumers navigate legal processes, exercise their rights and obtain redress. However, legal services are often purchased in distressing and stressful circumstances, raising important issues around consumer vulnerability and the risk of detriment. It is important that there is a strong regulatory framework to ensure the legal services market meets the needs of consumers and that there is a clear, evidence-based consumer voice at the heart of the design process.

Consumer Scotland has engaged in the legislative process on the reform of the regulatory framework during the past year and we will continue this work in 2024-2025. This will include highlighting new research evidence on consumers’ attitudes and experiences, to advocate for a reformed system that delivers for consumers.

A fairer rental market

Ensuring fair and affordable access to rented housing is a key issue for consumers in Scotland. As a new area of work for Consumer Scotland in 2024-2025 we will conduct an initial review of the existing evidence base to identify gaps in knowledge and consider what issues are of most concern for consumers.

We will work in partnership with key stakeholders to help inform the policy responses to these concerns, such as the planned Housing Bill, to put the needs and interests of consumers in Scotland at the centre of these interventions.

Public transport services that consumers choose

In the journey to net zero it is important that public transport is affordable, accessible and convenient for consumers. This is a new area of work for Consumer Scotland and in 2024-2025 and we will undertake scoping work to understand public transport usage in Scotland, seeking to identify ways consumers can be encouraged to reduce car kilometres.

We will seek to influence key emerging policies, such as the Fair Fares review and climate change sector plans for transport. We will provide initial recommendations to improve the consumer experience of the public transport system, while highlighting barriers inhibiting public transport usage. Based on these activities we will assess future research needs.

A circular economy designed for and with consumers

The Circular Economy Bill is currently before the Scottish Parliament and it proposes the development of a circular economy strategy, targets and a number of measures to facilitate better, more efficient use of our resources.

Our research shows significant scope for action to improve consumer understanding of and engagement with such policies; there are opportunities to support consumers to identify and take actions that reduce consumption and maximise use of our resources, moving further up the waste hierarchy and making the choices that will help us meet our ambitious net zero targets.

We will continue to engage with the development and implementation of the Bill in 2024-2025 to provide a consumer perspective on the key provisions.

Regulations that deliver consumer outcomes

During 2024-2025 we anticipate that proposed changes to regulatory frameworks in a number of markets will have impact on consumers in Scotland. This includes digital markets and competition, consumer protection and reform of regulatory policy including retained EU laws.

We will use our expertise and our evidence base to advocate for better consumer outcomes and identify measures which can be put in place to reduce risks of consumer harm. This may include stakeholder engagement, publishing briefings or contributing to regulatory policy or parliamentary consultations. We will aim to ensure regulators, governments and others consider the needs and aspirations of consumers in Scotland when developing policy and regulatory measures.

Making the energy market work for consumers

Overview

Energy bills are slightly lower than they were this time last year, but they continue to impose substantial affordability challenges on many households. High energy costs also contribute to negative impacts on health and wellbeing. Our energy tracker survey – which surveyed 1,500 Scottish households during October 2023 found that 30% of households are finding it difficult to keep up with their energy bills. Strikingly, 43% of respondents are finding it more difficult to keep up with their bills now compared to this time last year.

Short-term interventions to alleviate affordability challenges must be balanced with the need for longer term reforms to ensure the GB energy market effectively enables the transition to net zero. Since forming, Consumer Scotland has undertaken a range of activity advocating for fairer terms for consumers in Scotland in the energy sector. We have sought to mitigate the impact of the energy crisis on consumers, advocate for a fair and just transition to net zero and make the case for greater support for consumers who are not effectively catered for by current policy and regulatory frameworks or market arrangements.

In 2024-2025 we will continue to: 

• develop our understanding of the experiences of energy consumers in Scotland and gather data to strengthen our evidence base
• secure improvements for consumers through partnership projects and influencing policy makers and the wider energy industry
• identify the conditions necessary to enable consumers in Scotland to benefit from evolving energy products and services as we move towards net zero targets
• influence the regulation and practices of the energy industry to be more consumer-centric
• advocate for fairness in ongoing market reform and future investment

We will use our insight and evidence to build a stronger picture of consumer needs across markets and to start to place a sharper focus on influencing longer-term, strategic and structural reforms which have the potential to realise substantial consumer benefits.

The energy market is complex and fast-moving. It will not be possible for Consumer Scotland to engage with all policy or regulatory issues relating to the workstreams in our Work Programme. We will make clear choices during the year about how to focus our work in relation to each of the areas described below, to maximise the value and impact of our work.

We will continue to convene the Energy Consumers Network in 2024-2025. This important collaboration with other consumer organisations working on energy issues in Scotland will help to inform our work across the energy market. We will also work closely with other consumer bodies, including Citizens Advice, to provide insight into the key issues for consumers in Scotland so that these can be considered in GB-wide activity.

A future retail market designed around consumers

The retail energy market remains in a state of continual structural and policy change which regularly exposes a range of consumer challenges, requiring the wider industry to respond at pace. Energy prices remain 50% higher than in 2021. Alongside these high costs, the transition to a low-carbon energy system will change the way that energy markets operate and how households and businesses access energy products and services. In 2024-2025 Consumer Scotland will: 

• Provide insight and evidence on the key issues for consumers in Scotland into significant developments in the energy sector through engagement with industry and decision-makers through working groups and consultations
• Utilise our growing evidence base to advocate for better targeted support across short-term interventions and longer-term reform 
• Work to further identify how the needs of consumers in Scotland can be placed at the centre of future markets
• Continue to track the experience of energy consumers in Scotland through our regular tracker survey

An energy system that serves rural consumers

Consumers living in rural parts of Scotland are more likely to be in fuel poverty compared to those in urban areas. Energy and fuel costs also tend to be higher in rural areas. Consumer Scotland will continue to facilitate our expert working group, which examines the challenges facing rural and remote consumers as they heat and decarbonise their homes. The group will take forward work that will provide valuable insights on the challenges and opportunities faced by consumers in rural and remote settings.

We will use this emerging evidence to contribute to policy development and implementation through the provision of briefings, consultation responses and stakeholder engagement.

Improved access to and experience of low carbon technology for all consumers

It is important that energy efficiency policy in Scotland is informed by an understanding of consumer awareness of low carbon technologies and the barriers that consumers can experience in adopting them. Consumer Scotland will continue to apply our evidence base on the experiences of consumers adopting low carbon technologies, including heat pumps, solar PV, and electric vehicles. We will use this evidence to ensure that the development of policy for emerging low carbon tech is built on a clear understanding of the challenges and opportunities facing consumers in Scotland.  

We will also continue our work supporting the implementation of Scotland’s energy efficiency regulations to ensure that they reflect the consumer perspective and work to incentivise owners and tenants to adopt zero direct emissions heating systems. 

Maximising the benefits of the energy transition for consumers 

Repowering Britain will be an essential enabler of governments’ net zero ambitions, providing clean, green energy for heating, power, and transportation, and opportunities to re-imagine how markets and policy can work in tandem to deliver fair and affordable energy for all.

Over the next few years, Consumer Scotland will undertake work to support the transformation of the energy system in Great Britain in ways which maximise the benefits to consumers in Scotland. In 2024-2025 we will work with stakeholders to explore opportunities to empower communities as active and engaged participants in the energy transition, to deliver greater value for consumers through market reform, innovation, and improved whole system co-ordination and planning.

A new system of heat network regulation that delivers for consumers

Heat networks have the potential to bring many benefits to consumers as a cost-effective, low carbon method of heating. However, there is a strong evidence base on the harm that can be experienced by consumers of heat networks. The introduction of new regulation will play an important role in addressing and preventing these harms. Consumer Scotland will take on a new role as the statutory consumer advocate for heat network consumers in Scotland in the new regulatory regime. As part of this new responsibility Consumer Scotland will gather information on the issues and experiences heat network users face, using this evidence to advocate on behalf of consumers. It will also mean formally representing consumers on industry and advisory groups, ensuring the consumer perspective is incorporated at all stages of decision making.

There is a significant amount of scoping required to prepare for this role, which we will begin once Consumer Scotland has been fully resourced to take on this new function. In 2024-2025 we will begin to undertake this work, exploring how we can deliver this new role for heat networks consumers working across the consumer landscape in Scotland.

Big Energy Savings Network and Worried This Winter campaign

People need support and access to advice services. In 2024-2025, Consumer Scotland will continue to work in partnership with Citizens Advice Scotland to deliver support directly to consumers through the Big Energy Savings Network (BESN) project and the Worried This Winter campaign. Both programmes are delivered in communities across Scotland by Citizens Advice Bureaux and other third-sector partners. BESN trains advisers to deliver vital energy advocacy services to individuals and in group settings, while Worried This Winter provides energy and cost-saving advice in the coldest months.  

A connected future-ready postal market

Overview

Postal services, including the letters and parcels markets, can play a vital role in connecting consumers in Scotland to a wide range of markets and services, as well as to each other. These services are often particularly important for those consumers who, for a variety of reasons, may have limited use of digital technologies.

The way in which consumers engage with postal services is changing, with letter volumes decreasing while parcel numbers are rising. At the same time, there remain some consumers for whom using postal services can be challenging, for reasons of access or affordability. There are also concerns over the quality of service that consumers can experience when using some postal services. Looking to the medium-term, there is a need for the postal sector to reduce its carbon footprint, as part of the wider economic journey to net zero.

All of these issues have implications for how consumers in Scotland experience postal services now and in the future. In 2024-2025 Consumer Scotland will work with the regulator, the industry, Citizens Advice, the Consumer Council for Northern Ireland and other consumer bodies to avoid any duplication of activity and ensure that we deliver added value. Through our work will seek to put the interests of consumers in Scotland are at the heart of decisions about the future of the UK postal markets and identify practical solutions to help deliver improved consumer outcomes.

A universal postal service that delivers for consumers now and in the future

It has been over a decade since the Postal Services Act set out the current legislative framework of the Universal Postal Service in the UK. Since that time there have been significant changes in user needs from postal services across the UK.

Recognising these changes, Ofcom is considering potential options for the future of the Universal Postal Service. Consumer Scotland has undertaken early engagement with Ofcom and Royal Mail in this process to provide an initial perspective on key issues for consumers in Scotland. In 2024-2025 we will continue to engage Ofcom, Royal Mail and the UK Government on the reformation of the Universal Postal Service to ensure any changes meet the needs of current and future consumers.

We will provide analysis, insight and recommendations on what consumers in Scotland might need from the postal services sector in the long-term, to encourage future proofing of the legislative framework, taking account of long-term changes needed across the postal market, such as decarbonisation. We will also provide recommendations to influence the implementation of rigorous safeguards to ensure that all consumers are able to benefit from a high quality postal service.

An inclusive postal system for all consumers

Consumers without fixed addresses, such as those experiencing homelessness, fleeing their homes, or those who are part of the Gypsy, Roma and Traveller communities, face significant challenges in accessing essential services. Receiving letters for NHS appointments, accessing mobile contracts, or getting financial aid can be extremely difficult without a postal address.

We will undertake work to build on our existing understanding of the challenges the impacted communities are experiencing, gathering evidence of solutions that could work for the different groups impacted by exclusion. We will continue to engage government, regulators, industry, public bodies, civil society and other consumer advocacy bodies on the options for change to support those impacted. We will take a practical, solutions-focused approach, which builds on existing work in this field, and which recognises commonalities across the UK as well as the specific landscape for consumers in Scotland.

A transition to net zero post with consumers at the centre

The UK parcels market has grown significantly in the last decade. There is little consistency in the measurement of emissions in this market and in the information that is provided to consumers, while the transport industry has struggled to reduce its emissions in supporting the growing market, with significant reliance remaining on heavy emission road freight.

In the past year, Consumer Scotland has commissioned qualitative research with consumers, including small businesses, on their attitudes to decarbonisation of the postal sector. We have explored consumers’ attitudes towards the changes that might be required to reduce the carbon emissions in this market. This new research will allow us to engage with the industry on the needs of consumers, particularly as the market continues to develop and grow, and provides the foundations of an evidence base for Consumer Scotland’s advocacy activity.

In 2024-2025 we will follow up on the research we commissioned, building understanding of the issues that the research found and providing recommendations for change that will benefit consumers now and in the future.

A consumer-focused Post Office network 

The Post Office network provides access to a range of essential services for consumers across Scotland. Many branches now serve as financial services hubs for communities, while also providing their traditional role in offering postal services.

For rural and remote consumers, including small businesses, the role of the Post Office is central to their communities. Consumer Scotland will continue to examine the delivery of the network and whether it is meeting the needs of consumers in Scotland. We will carry out regular analysis of Post Office data, enhancing the evidence base on the current and future needs of consumers.

A water sector ready for climate adaptation and mitigation

Overview

The water sector is at the frontline of climate change mitigation and adaptation in Scotland. Issues of infrastructure investment and management, consumer behaviour and expectations, flooding, water scarcity and water quality are central to policy and regulatory decisions about how Scotland’s water sector adjusts to the changes in our climate. Each of these issues presents a range of potential impacts for consumers. 

Alongside these considerations, many consumers in Scotland are experiencing significant pressures on their household budgets. The funding mechanisms which underpin the investment that the sector requires to be ready for the future are of significant importance to consumers, in terms of the affordability of water charges. This has implications for consumers both today and in the future.

In the non-domestic water market, there are questions as to how to ensure that consumers achieve high quality services, with new interventions being developed to support this.

In 2024-2025 Consumer Scotland will engage in the key strategic, regulatory and policy processes which will be taking place to advance these major issues. We will develop and apply develop our evidence base to provide insightful analysis and recommendations to these processes and ensure that the consumer perspective is at the centre of decisions about the future landscape.

Consumers at the centre of the transition to a sustainable water system

There is a need for the water industry in Scotland to adapt to the challenges posed by climate change. In the past year we carried out deliberative research with consumers to develop our evidence base around how domestic consumers can and should be part of Scotland's transition to a more sustainable and resilient water sector. We will build on this research during 2024-2025 and use the findings to put the consumer voice at the heart of sector discussions.

Our work in this area closely aligns with the policy development review of the water industry, led by the Scottish Government. We will identify opportunities for advocating for consumers' needs as this review progresses. We will give particular attention to consumer support for policy options, the acceptable pace of change, how solutions can be fairly paid for and how risk of consumer detriment can be minimised.

Fair and affordable water charges

During 2024 discussions will commence between water sector stakeholders to agree the water and wastewater charges for the next regulatory period 2027-2033, known as the Strategic Review of Charges (SRC). We are discussing with stakeholders how to engage consumers in the review and expect to be closely involved in the process.

We will build on our affordability analysis developed during the past year to advocate for effective policy that can support low income consumers. We will also consider consumer research that will explore the risk appetite for the pace and scale of price increases in the water sector.

A water market that works for non-domestic consumers,

We will continue our activity in the non-household water sector and improve outcomes for small businesses in this market.

In 2024-2025, we expect to progress work with stakeholders to introduce a Code of Practice and Market Health Check function into the non-household market, which applies to the Licensed Providers who service companies within in it. Building on the research and development work undertaken previously, we will engage with the next stages in the process which integrate this initiative into the market.

We will continue to chair the Senior Stakeholder Group, and through this, support the introduction of further innovations to the market, such as a proposed further roll-out of smart metering technology.

A water sector shaped by the consumer experience

As the independent consumer advocate for the water sector, we will explore the development of a structured analysis of the experience of consumers in the water sector. This will explore a range of issues through our independent consumer lens. This may include service levels, billing, affordability, debt, complaints, consumer benefits from investment and private water supplies.

By using our research and data analysis expertise we can produce a robust review of the consumer experience of the water sector. We will contribute this analysis in our engagement with key stakeholders to help identify issues and emerging trends as well as to drive consumer improvements.