The average Brit spends £696 a year on subscription services, such as streaming platforms and gym memberships. That is more than £50 disappearing from your bank account each month. In today’s world, where music, TV and so many other things are locked behind monthly fees, it is easy to lose track of the individual items you pay for. But have you ever considered how these costs add up over the year?
Let's break it down.
Individual monthly subscriptions might feel small, but they add up fast. A £10 monthly fee for a streaming service like Netflix seems harmless until you realise that is £120 a year. Add Spotify, Disney+ and Amazon Prime, and you are looking at hundreds of pounds a year just for these platforms. If you are then also paying for Apple Music, a Kindle Unlimited subscription and a gym membership, your costs escalate further still.
And the cost is arguably not even the worst part. Sometimes, we can subscribe to so many services that we forget about some altogether. Research by Citizens Advice shows that unused subscriptions cost UK households millions every year – whether it is a gym membership you have not used since January or a trial you forgot to cancel before it rolled into a recurring payment.
Companies design subscription-based services to make spending feel painless. A small monthly fee doesn't hit your wallet as hard as a one-off payment, but it is harder to track. Recurring payments quietly drain your bank account and unless you are paying attention, those £7.99s and £10.99s slip by unnoticed.
Throw in free trials that turn into paid subscriptions the second your trial ends, and it is no wonder the subscription economy is booming.
Follow these steps to get the cost of your subscriptions under control if your monthly spending is higher than you would like:
Go through your bank account and check every subscription you are paying for. Are there any unwanted subscriptions there that you no longer use? Cancel them immediately.
Watching something on Netflix? Finish all episodes first, then cancel and switch to Disney+ or Prime Video for your next binge. By rotating the subscriptions you pay for, you can still access everything you want, but without paying for multiple services at the same time.
Some services offer discounts if you pay for the full year upfront instead of making monthly payments. This is a simple and most pain free way to save if you know you will keep using a service all year.
Free trials are great, but only if you remember to cancel before they end. Always set a reminder to do so in your calendar app to avoid being charged for services you don’t want to pay for.
Many subscription services, like Netflix or Apple Music, offer family plans or shared accounts. Splitting subscription costs with family or friends can make life (and your expenses) much more manageable. However, some services do not allow you to share subscriptions if you live in different places.
Ask yourself: Do you really benefit from all your subscriptions? Gym memberships, magazines, pay as you go software and music streaming services are all great, but only if you use them. Cancelling unused subscriptions is the best way to save money and you should never miss a chance to do so.
It is not just the streaming subscriptions that eat into your monthly budget. The subscription economy extends to everything from TV licences and fitness apps to digital magazines and niche services. But their widespread availability is not the only issue.
Many users also report struggling to cancel subscriptions due to tricky websites or unclear processes. You may need to google for help if you are with a platform that is making it particularly difficult to stop paying them.
You can save hundreds of pounds a year by cutting down on unwanted subscriptions and planning your spending. This is the money you could use for something that genuinely benefits your life – a holiday, an emergency fund or simply easing the cost of living pressures.
Subscription-based services make life convenient, but they can also overwhelm your finances. With a little effort, you can still enjoy the perks of streaming TV shows, music and more, but make it stress-free and within budget.
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