The answer is very simple: don't do package holidays. If you organise your own flights and hotel, you'll find the prices are pretty much the same, if not all year round (August will be more expensive than January, clearly) but they don't vary the prices according to whether it's holidays in the UK (England) or not. So May half term will cost the same as the week before in May, or the week after in June. I don't think I have ever stayed in a B&B in the UK where the prices have been more in the school holidays than the adjacent weeks, in fact in most cases they have a price per room for the year, so it doesn't even cost more in August than it does in March, although they may have minimum stays etc.
And you don't need to go away in August, October half term can be lovely, and May half term is great for holidays in the UK. People just need to be a bit creative.
It is very amusing when local authorities DO vary their holidays and the travel companies get all in a muddle, happened a few years ago when Feb half term was different across different LEAs and there are ski holiday bargains to be had (if there is such a thing as a "bargain" when it comes to ski holidays).
Anyway most of this situation has not been caused by the government, it has been caused by some headteachers reaching ludicrous decisions. They do have the power to authorise absence in exceptional circumstances. While that does not mean "I want a cheaper holiday" it does allow them to authorise it for other very good reasons. Some of the stories in the media have been ludicrous and show HTs may be able to run a school but have no common sense.
And although I think 13 weeks in a year is ample opportunity to find a suitable week to take a holiday for most people in normal jobs, I'm going to be hypocritical and say that if the end of term was a Monday, and it suited me, I'd go away that week. But I think most schools would schedule an INSET day, they know the "sick" rate will be huge that day!
I would be in favour of a 2 week May half term and an earlier 2 week October half term, and only have 4 weeks in the summer.