"Is there a government body which we as consumers can escalate this to?
No government body as such, but VM are required by the Communications Act to have an independent dispute resolution service when you are not happy with the way VM handle your complaint. Unfortunately you have to wait 8 weeks from when you first made VM aware of your issue before you can file with CISAS unless the give you a 'deadlock' letter.
Damn, and I thought I was the only one getting it!
I'm in Tufnell Park and have been experiencing it for 3 weeks now too. No matter how many times I test my internet (after phoning and actually getting upgraded to 350), I am still constantly getting packet loss. In fact, I lagged out 3 times in a row in FIFA- has never EVER happened before. Players running off, sudden disconnections... It's actually worse than its ever been in the past weeks of experiencing this.
But hey, it's all well and good complaining, but in actuality, if this problem won't be fixed in the near future, I'll just be switching. It's such an annoyance, and any gamer in this area will feel the exact same frustrations as I. It would be a large demographic they would lose too, so I would suggest that Virgin fixes up. ✌