New Consumer Focus watchdog comes into force » Communities » 24dash.com

A new consumer watchdog group comes into force today, with the Government pledging it will help people get a better deal, although the move was criticised by small businesses.

Consumer Focus, formed through the merger of the National Consumer Council, energywatch and Postwatch, will have stronger powers, including the ability to demand information from companies, said ministers.

Business Secretary John Hutton said the changes will help consumers get a better deal, adding: "One single body, rather than three, means a stronger voice holding business and Government to account. It means a more joined up approach to tackling problems.

"Energy and post companies will have to take greater responsibility for handling complaints or face significant fines, and where complaints can't be resolved voluntarily, new redress schemes give the system teeth."

Ed Mayo, chief executive of Consumer Focus, said: "There could not be a more appropriate time to launch a new, more powerful consumer champion and to improve complaints handling.

"Current economic conditions are tough and consumers are telling us that value for money is their number one concern.

"The creation of Consumer Focus, a new kind of campaigner, is a once-in-a-generation opportunity to put consumers at the heart of business and government decision-making. We will campaign for a fair deal for consumers, because if consumers are confident, then everybody, including families, business and the economy, benefits."

The Federation of Small Businesses decried the demise of energywatch, saying it would leave small firms with little awareness of where to turn.

Spokesman John Holbrow said: "Small businesses are already under particular strain in a volatile energy market and this is coupled with unclear pricing policies and poor standards of service from some gas and electricity suppliers.

"We are continuing to lobby for better representation of small businesses in the new set-up."

Speaking on BBC Radio 4's Today programme, Mr Mayo added: "The three old organisations have got a very proud record and they have done a great job, but what we found when we looked at the people who were coming through to them was that one person, let's call her Mrs Jones, would come with one type of complaint but actually that same complaint was shared by 1,000 other people.

"So we can still provide Mrs Jones with individual advice... but then we can campaign on the issues to prevent the 999 others from losing out."