Campaign group for consumers born

The government has announced the merger of the National Consumer Council, Energywatch and Postwatch.

A new body called Consumer Focus will campaign on behalf of consumers, while the existing Consumer Direct service will be their first point of contact.

The change is part of the Consumers, Estate Agents and Redress Act, which was approved last year.

The reforms, set to come into force on 1 October, also include the creation of an ombudsman scheme.

The new ombudsman will rule on complaints about energy and postal services that have not been resolved by the companies involved within eight weeks.

Consumer Direct is an existing, government-funded telephone and online service, which will now also take responsibility for giving advice on energy and postal issues.

The new body will have greater powers than the bodies it replaces, including the ability to investigate complaints.

Consumer Focus will receive funding of £15m a year, according to consumer affairs minister Gareth Thomas.

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