As households across the UK continue to face the cost-of-living pressures while inflation steadily bites into incomes, a growing number of people are turning their attention to a deceptively simple area of spending: subscriptions.
Once hailed for convenience, recurring payments can quietly erode budgets while remaining unnoticed.
So, we hear from budgeting experts on the best way to manage your subscriptions and save money.
Get a clear view
The first step in reclaiming control is clarity. It sounds straightforward, but for most of us, it’s anything but.
The sprawl of subscriptions – from TV services and cloud storage to mindfulness apps that you accidentally purchased a year ago – often traverses banks, devices and even family members.
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“The best way to check your subscriptions is through a budgeting app or budgeting tool,” says Plum finance‘s head of money, Rajan Lakhani. “These kinds of tools should show a list of your outgoings all in one place so you can see which outgoings are subscriptions and which provider you’re paying.”
For those who prefer a manual route, he suggests to, “instead check your outgoings on your bank statement and manually make a note of the subscriptions”.
If you’re starting from scratch, the experts suggest going digital.
“The most efficient way is through a digital tool or app that automatically identifies and categorises recurring payments,” explains CEO of Marygold & Co. Matthew Parden. “Rather than combing through statements or relying on memory, these services provide a consolidated view of your subscriptions in one place.”
The high price of ignorance
Small charges can be easy to ignore but very expensive to keep.
“Many people lose track of their subscriptions because they sign up for free trials but then forget to cancel them,” says Lakhani, “or if the subscription fee is a small amount, sometimes they won’t even notice the money leaving their bank account.”
Government figures suggest this complacency comes at a price. “The cost of these forgotten subscriptions has risen to over £1.6 billion a year,” Lakhani notes, “with nearly 10 million of 155 million active subscriptions in the UK unwanted.”
Uncovering forgotten subscriptions is one of the most common outcomes when people first make a budget. “In many cases, people are even paying twice for the same service without realising it until we flag it during a financial review,” explains Money Wellness‘s business coordinator Ebony Cropper.
“Just three or four unused subscriptions could cost you hundreds of pounds a year,” she says.
Know what you’re really paying for
Understanding what you’re paying for – and why – is essential.
Among the most commonly overlooked are digital and app-based services. According to Parden, “Streaming services, cloud storage, gym memberships, mobile apps and subscription boxes” are frequent offenders.
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“Free trials that roll into paid plans also frequently fly under the radar, as do annual charges for services like software or digital learning platforms.”
These are common trends, Lakhani points out, “the most forgotten subscriptions include those to streaming services such as Netflix, Amazon Prime Video, and Disney+.
“Prior to the rise of streaming services, subscriptions taken out at the start of the year to follow through on New Year resolutions, such as gym memberships, would often later be forgotten about.”
How to decide whether to cut, keep or downgrade
Evaluating the value of your subscription needn’t be complicated or anxiety-inducing.
“Start by reviewing all your recurring charges,” says Parden, “either using a tool that automatically pulls them together, or by going through bank or credit card statements manually, or by reviewing the active direct debits and standing orders in your online banking.”
From there, he says, “ask simple but useful questions: Do I use this often enough? Is it worth what I’m paying? Are there cheaper or better-value alternatives?”
As a rule of thumb, “if you can confidently say you use the subscription more than twice a week, keep it,” says Lakhani. “If you don’t, it’s most likely time to cancel.
“And always set a calendar reminder if you’re setting up a free trial!” he says. “In many cases, you should be able to cancel the subscription beforehand and it will still keep your subscription live until the official end date.”
For shared households, this process shouldn’t come down to just you.
“This is also a helpful conversation to have with others in your household,” says Parden, “subscriptions often overlap and reviewing them together can highlight opportunities to consolidate or cut back.”
What are your rights?
Beyond better habits, UK law is firmly on the side of consumers. Parden points to the Consumer Rights Act 2015 and Consumer Contracts Regulations, which states, “companies must clearly disclose auto-renewal terms before a customer commits. If those terms aren’t made clear – or if the service doesn’t match what was advertised – you may be entitled to a refund.”
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The new Digital Markets, Competition and Consumers Act is also on your side, as Lakhani says, “you can exercise your statutory 14-day cooling-off right to cancel after signing up to a subscription or after a trial or long-term contract – which is 12 months or more – auto-renews.”
Failing a response from the provider, he suggests invoking the Consumer Protection from Unfair Trading Regulations.
“If the provider’s auto-renewal terms were misleading or unclear, this may include requesting a refund or negotiating a termination.”
Stay vigilant
Ultimately, no tool or regulation will be effective without a bit of regular vigilance. “Review your subscriptions every couple of months, especially when money is tight,” Cropper advises. “You could end up saving a significant amount without really noticing the difference in your day-to-day life.”
As our digital spending habits become more fragmented, the once-humble subscription deserves far more scrutiny than many give it. So with a little extra probing, that forgotten £6.99 charge might just be the easiest saving you make this year.
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