On-demand Disney movies, Netflix binges, Amazon watch parties, the latest Sky series and next day delivery subscriptions were an essential part of most of our lockdowns.
Ofcom calculated that six million households signed up to a paid streaming service during the first lockdown when we were unable to shop, leave our homes, socialise or go to the cinemas.
However, now that curbs on leisure activities have lifted do we still need those services that we are paying for?
According to comparethemarket.com, one in five households (21%) are paying for subscriptions they have forgotten about or no longer use and young bill payers are paying the most.
Nearly half of bill payers under the age of 25 (47%) have subscriptions that they don’t use, and these young people are squandering an average of £344 on these services each year.
The typical household is spending a huge £265 a year on services they don’t need.
Only 9% of people aged over 55 have unused subscriptions, but these people are still wasting an average of £164 on them each year.
The research found only 28% of households check every month how much they are spending on subscriptions and as a result, unused or unneeded subscriptions are putting further pressure on household finances.
51% of households said they had seen the cost of their monthly bills rise over the past 12 months and despite seeing their bills increase, four in ten households (42%) admit they don’t regularly compare other providers for cheaper or more suitable deals once their contracts end.
Anelda Knoesen, product lead for Open Banking, comparethemarket.com said: "As social distancing curbs are being lifted, households may now be paying for subscriptions they no longer need.
"Reviewing household spending regularly and cancelling unused subscriptions can make a big difference in making ends meet.
"Our research shows young people could save hundreds of pounds by cancelling forgotten subscriptions or checking prices more regularly.
“Shopping around is one of the most effective ways to cut the cost of monthly bills and relieve some of the financial pressure, potentially saving hundreds of pounds each year."
How to manage lockdown subscriptions
Moneyadviceservice.org.uk have put together three tips to start managing your unused or no longer needed subscription services.
1. Audit your bank statement
Gather together your most recent bank and credit card statements and take a look at what you’ve been buying. If you notice a regular payment, check if it’s something you regularly use.
If not, it could be worth cutting back.
If you can go back a year, you might also pick up on annual payments that auto-renew.
2. Find out when the subscription ends
Any subscriptions you’ve signed up for will have a renewal date.
Find it and make sure you put a note in your diary so you know to cancel. For annual contracts, you should ideally do this five weeks before to avoid missing the notice period (often 30 days).
Even better, if you can cancel the subscription as soon as you sign up, it’ll mean you definitely won’t forget later in the year. If you want to carry it on, then it’s easy enough to sign up again.
3. Cancel what you don’t need
If you don’t use it, don’t pay for it.
Phone, email or write to the provider and get the subscription cancelled- at times this can be tricky and frustrating but persevere.
Watch out for any penalties if you try to leave early, but also ask if you can get a refund – especially with magazine subscriptions.
It’s worth keeping an eye out for retention deals because to keep your business you might be offered another month at a reduced price.
That’s great… as long as you use it.
Otherwise, you’re still paying, albeit less, for something you don’t need.
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