28 Apr 2026
Analysis suggests CMA changes won't lower costs but will help pet owners.
Allister Webb
Job Title
Planned reforms to the provision of veterinary services will still help pet owners even if they do not lead to lower costs, new analysis has claimed.
Officials from the financial intelligence firm Defaqto have warned, meanwhile, that the Competition and Markets Authority’s (CMA) plans could also make pet insurance more complex, potentially increasing the price of cover.
Stephen Kennedy, director of the company’s market pricing unit, argued moves towards greater transparency and clearer pricing were still important for consumers.
He said: “While the reforms may not deliver short-term price reductions, they still represent a meaningful step towards a fairer and more understandable market.”
Although the CMA raised the prescription price cap for primary medicines from £16 to £21 in its final remedies last month, concerns have persisted within the sector about the potential impact of its measures – particularly on smaller independent operators.
Mr Kennedy conceded the reforms were “unlikely to materially reduce” overall care costs, despite reductions for certain treatments.
He said: “In many cases, the changes will simply redistribute costs rather than remove them.”
He also forecast that the demand for pet insurance would be driven by greater price visibility that could put “upward pressure” on premiums amid a shift towards more data-based pricing strategies.
But asked whether there was a danger the investigation process could be perceived to have achieved little for the public, he said: “Pet owners should benefit from clearer pricing, better visibility of treatment options and potentially more informed decision-making.
“Over time, that transparency could support more effective competition, even if it doesn’t immediately translate into lower insurance premiums.”
A draft version of the investigation’s formal orders is expected to be published in July, ahead of a statutory deadline in late September for the CMA to implement its actions.
Its measures have also been endorsed by the consumer finance group Which?, as it argued they would be welcomed by owners who had been “caught out by hidden fees and unclear pricing” when their pet needed care.
However, Which? head of consumer rights and food policy, Sue Davies, warned new legislation for the sector, including formal regulation of veterinary businesses, must progress following the recent public consultation on changes to the Veterinary Surgeons Act.
She said: “There are limits to what the CMA can do, and more fundamental reform of the veterinary market is long overdue.
“It is crucial that legislation is prioritised, including creating a strong independent regulator and a robust system for independent redress.”
Submissions are being analysed according to the consultation webpage, although it is unclear when any details may be released. But several senior sector figures have voiced unease at the legislative issue being connected to the CMA investigation, despite the authority’s own call for reforms to be pursued.