British households are haemorrhaging up to £1,200 annually on subscription services, with new research indicating they could reclaim as much as £400 by cancelling forgotten 'zombie' memberships. A survey from Nationwide Building Society highlights a widespread issue of unused or duplicate payments for everything from streaming platforms to fitness apps, silently draining bank accounts.
The Scale of Subscription Waste
The study found that a significant 19% of subscribers do not use every service they pay for. With finances stretched after the festive period, nearly a third (31%) of consumers plan to review and cancel these dormant outgoings. Mark Nalder, Nationwide's Director of Service, Operations and Performance, emphasised that the new year presents a natural moment for a financial health check. "Managing your regular outgoings and factoring them into your budget can be crucial in avoiding overspend," he advised.
How to Conduct a Subscription Audit
Personal finance experts recommend starting with a thorough spending audit. Scrutinise your bank statements and compile all recurring payments for TV, media, delivery, and product subscriptions into a simple list or spreadsheet. Note the last time you used each service and its total cost. Rebecca Bebbington from NetVoucherCodes says: "Start by making a full list of everything you pay for regularly... Note down which services you actually use and mark down the renewal dates."
This process allows you to identify what you truly value. For instance, if you subscribed to Apple TV solely to watch Ted Lasso or Severance, continuing the £9.99 monthly fee after finishing the series is an unnecessary expense. Remember, you can cancel most monthly streaming contracts at any time.
Smart Strategies to Slash Your Bills
Adopting a 'leapfrogging' approach can lead to substantial savings. Instead of paying for multiple streaming services concurrently, Bebbington suggests using one at a time: "Plan how you watch, enjoy, cancel, and then hop on to the next." Furthermore, always check if you are entitled to subscriptions bundled with other products. For example, a Club Lloyds current account includes a free Disney+ benefit, and Amazon Prime comes with a Deliveroo Plus Silver package.
Households can also save by opting for shared plans. Spotify's Premium Family plan costs £21.99 monthly for up to six people, far cheaper than individual £12.99 plans. If you wish to keep a service, threatening to cancel can sometimes trigger a retention offer for a cheaper rate or extended trial.
Help is also on the way from regulators. Later this year, new consumer protections will force companies to remind customers of their subscriptions and explain how to cancel them. "This is to remind people that they have subscriptions that they might or might not want," explained Katrina Anderson, a lawyer from Mills & Reeve.
Taking control of these stealthy expenses is a straightforward and effective New Year's resolution. A few hours spent reviewing your commitments could unlock hundreds of pounds better spent elsewhere or diverted into a savings pot.
