Labour to cap household bills at 30-day low

New Zealanders could save money on phone, internet, and insurance bills if the Labour party wins the election on November 7. The party has pledged to stop companies from charging loyal customers more than new ones, a practice that often sees long-term subscribers paying higher rates for the same service.

Labour leader Chris Hipkins stated on Monday that customers should not have to spend hours comparing prices or reading fine print to get a fair deal. He noted that many people find their bills rise when introductory deals end or when advertised sales are not as beneficial as they appear.

Under the proposed policy, phone, internet, and insurance providers would be prohibited from charging longstanding customers higher prices than new customers. The policy document specifies that power companies are already required to verify that customers are on their best available plan, a requirement Labour intends to apply more broadly.

The plan also targets misleading pricing practices. Labour proposes a ban on 'fake discounts,' requiring that advertised savings be calculated based on the lowest price charged for that specific product in the previous 30 days. This rule would prevent companies from shifting customers onto excessively expensive plans once an introductory offer expires.

Arena Williams, the party’s spokesperson for commerce and consumer affairs, said the policy aims to ensure New Zealanders have fair prices and honest deals. She stated that the goal is to leave consumers with more money at the end of the week by tackling the cost of living on household bills.