New rules aimed at ending subscription traps could save consumers an average of £14 a month for every unwanted subscription from January. Prime Minister Andy Burnham announced on Monday that new consumer protections will come into force in January 2027, earlier than previously planned, as part of a series of “everyday fixes” designed to ease cost-of-living pressures.
What the new rules mean
Businesses will be required to provide clearer information when people sign up for subscriptions, send regular reminders and make contracts much easier to cancel. A new 14-day cooling-off period will also allow consumers to cancel after a trial or long-term contract renews.
The UK Government estimates there are around 155 million active subscriptions across the UK, with consumers spending an estimated £1.6 billion each year on subscriptions they do not actually want.
Consumers already cutting back
The changes come as new research from Barclays suggests households are already taking a closer look at recurring payments as prices rise and budgets remain squeezed. More than half (5%) of people regularly review and cancel subscriptions to save money, while three in four (77%) have cancelled at least one in the last 12 months.
Among those who cancelled, 37 per cent said they were not using the service enough, 36 per cent blamed increasing costs and the same proportion said their needs had changed. A further 33 per cent said the subscription no longer represented good value for money.
Barclays card data also shows spending on digital content and subscriptions increased by 8.0 per cent year-on-year in June. Two-thirds (64%) of consumers are concerned about the rising cost of streaming and subscriptions, while 52 per cent believe the services offer less value for money than they used to.
Prime Minister's statement
Mr Burnham said: “I know people are sick and tired of rip-off discounts and subscription traps. Westminster has got used to telling people that everyday hassles like this are just part of life. I don’t think that’s right, especially when the cost of living continues to weigh heavily on so many people’s lives. “I’m determined to pull every single lever we can to provide people with some room to breathe on the cost of living. “We’re putting an end to phoney bargains. If something is advertised as half price, it should actually be half price. We’re also making it as easy to leave a subscription as it is to join.”
Exemptions and further action
Certain charitable memberships for cultural and heritage organisations will be excluded from the new subscription rules. The UK Government is also planning action against misleading discounts, including retailers artificially increasing prices before advertising a supposed reduction to make savings appear greater than they really are.
A consultation will launch this autumn on whether practices including fake ‘was’ prices, invented discounts and misleading recommended retail prices should be added to the list of practices banned under the Digital Markets, Competition and Consumers Act. If added, the practices would automatically be considered unfair, making it easier for enforcement action to be taken against businesses using them.
Expert insight
Rich Robinson, Head of Hospitality and Leisure at Barclays, said: “Today’s focus on subscription costs reflects what households are telling us. People want to know what they are paying, when that price might change and how easily they can leave. “Subscriptions can offer real convenience, but customers are checking more closely whether each service still earns its place in their monthly budget. Clear costs, timely reminders and simple cancellation processes can help people stay in control of their spending.”
The Barclays research also found the average UK adult has eight subscriptions and spends £210 per month on average. Film and TV subscriptions are the most common, held by 68 per cent of adults, followed by music and audio services at 43 per cent and premium banking and financial services at 25 per cent.
